Aos1 - The Business Idea

Question 1

Define entrepreneurship

Answer 1

Entrepreneurship is the process of establishing a business to satisfy a need in the market whilst
taking on the associated risks. While many individuals in society have business ideas, not all have the desire or ability to take on the financial and social risks of transforming them into a business venture.

Question 2

Define personal independence

Answer 2

Personal independence: involves a person being in control of their own actions and decisions. Many entrepreneurs are motivated to start up their own business because they do not want to work under an employer where they are constrained to following the employer’s instructions and helping them achieve their objectives.

Question 3

Define financial independence

Answer 3

Financial independence: is the ability to fund a desired lifestyle without relying on income from another individual. One of the main reasons people are motivated to start their own business is because it allows them to no longer be reliant on an employer for their income, and to potentially increase their own wealth and retire earlier.

Question 4

Define profit

Answer 4

Profit: involves a business generating more revenue than the expenses it incurs. Many people believe that when they work for an employer their earning potential is limited and they are driven to start their own business to earn more money, even though businesses usually incur a loss, rather than a profit during the start-up phase.

Question 5

Define market need

Answer 5

Market need: is a gap in the market represented by customer needs that are currently unmet or underrepresented by competitors in the same industry. Businesses can fulfil a market need by providing a good or service that better satisfies existing customer demand, or by creating a new product that meets customer wants and needs, for example the creation of Zoom video communication software by Eric Yuan, that allows users to meet with one another online.

Question 6

Define social need

Answer 6

Social need: is an area of society, or the environment that needs to be improved. Social enterprises are businesses that exist to address a social need, including preserving the environment, aiding disadvantaged individuals and preventing homelessness.

Question 7

Define manager

Answer 7

Manager: is an individual who has the responsibility of overseeing and handling employees whilst also running the day-to-day business tasks to achieve objectives. Many successful businesses are run by an appointed manager, rather than their original founders, with managers needing to develop a range of characteristics such as communication and knowledge to operate a successful business.

Question 8

Define entrepreneur

Answer 8

An entrepreneur is an individual who starts up a business and takes on the associated risks in order to satisfy a need in the market. Entrepreneurs need to develop a specific set of skills
when starting up their business.

Question 9

Define innovation

Answer 9

Innovation: involves creating and implementing new ideas, or significantly improving on an existing good, service, or way of doing something. Creating or improving products through innovation is a source of business opportunity as it attracts customers that are looking to purchase specific goods or services and provides a competitive advantage.

Question 10

Define Technological developments

Answer 10

are the invention and innovation of tools that solve problems and enhance processes. These developments can act as a source of business opportunity as they improve how businesses create, deliver and update goods and services, such as Apple which has been able to expand the number of products it makes and improve the quality of existing products.

Question 11

Define Global market

Answer 11

Global market: is the area in which businesses trade goods and services, comprised of both businesses and customers from countries all across the world. Selling to a global market acts as a source of business opportunity because it allows a business to reach more customers, helping to increase sales and marketshare, for example, as of June 2022 60% of Apple Inc’s net sales came from outside its country of origin, the US.

Question 12

Define Market opportunity

Answer 12

Market opportunity: is a need or want that is not currently being met by any business. Business owners should be constantly monitoring the market to identify any gaps which provide the opportunity to attract new customers away from competitors and therefore act as a source of business opportunity.

Question 13

Define Research and development

Answer 13

Research and Development: involves directing resources, such as money, towards discovering, creating, and introducing new products and processes. Conducting research and development acts as a source of business opportunity as new or improved products and processes can more accurately meet customer needs and create a competitive advantage, such as Dyson’s creation of a supersonic hairdryer which enables fast drying without extreme heat.

Question 14

Define Concept development

Answer 14

Business Concept Development: is one of the first steps when starting a new business and includes stages such as the development of an initial idea, market research and writing up a business plan. When developing a business concept it is important for the owner to identify goods and services that are currently unavailable, or are superior to competitor offerings, to ensure the business is creating a competitive advantage.

Question 15

Define market research

Answer 15

Market Research: is the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry, such as the strengths and weaknesses of competitors, and how many customers are in a market. The market research process aims to gather quantitative and qualitative data that can provide potential business owners with a greater understanding of the viability of their business idea.

Question 16

Define Initial feasibility study

Answer 16

Initial Feasibility Study: is a researched evaluation of how viable a business concept is. A potential business owner will look at different areas of feasibility such as operational feasibility to determine what kind of employees and equipment they will require, as well as legal feasibility to determine the likelihood their business will comply with applicable laws and regulations.

Question 17

Define economic wellbeing

Answer 17

Economic wellbeing: is reflected by the level of income, consumption, and wealth people or households have to support their material living standards. A nation’s economic wellbeing is indicated by various factors such as economic growth and unemployment levels, and is influenced by the performance of the economy of that nation such as during the COVID-19 pandemic which forced many businesses to close, and resulted in Australia recording its first period of economic decline since 1991.

Question 18

Define social wellbeing

Answer 18

Social wellbeing: is a measure of the quality-of-life individuals have, reflected by their non-material living standards including general happiness, crime rates, environmental quality, education and accessibility of healthcare. During the COVID-19 pandemic Telstra understood the negative impact of lengthy lockdowns on social wellbeing and implemented weekly online mindfulness and yoga sessions for employees with the purpose of keeping them busy and distracted from the continuation of working-from-home arrangements.

Question 19

Define council grant

Answer 19

Council grant: is a one-off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development. Entrepreneurs can use these payments, such as those made as part of the Whitehorse City Council Grants Program to help cover the establishment costs when launching their business, purchase machinery and equipment they may require, or pay labour costs when they expand.

Question 20

Define regional start-up hubs

Answer 20

Regional Start-up hubs: are physical spaces that individuals and businesses can utilise in order to have office facilities to work in, or to obtain support regarding business matters. Start-up hubs allow business owners to share ideas and practices, and some provide a subsidy for rental expenses, or offer workshops to enhance the skills and knowledge of business owners.

Question 21

Define decision-making

Answer 21

Decision-making: is the skill of selecting a suitable course of action from a range of plausible alternatives. Managers have a central role in a business’s decision-making process, and the decisions managers make can impact overall business success, for example hiring competent staff, therefore decision-making is an essential skill for managers to use.

Question 22

Define social goal

Answer 22

Social goal: are targets set by a business that aim to improve the welfare of the community, environment, or its employees. It is important for a business to set social goals such as reducing its carbon footprint, because this will improve a business’s reputation and could therefore increase sales/ profits, because customers prefer to support socially responsible businesses.

Question 23

Define financial goal

Answer 23

Financial goal: are targets for improving the overall monetary performance of a business. Financial goals may include increasing revenue, or improving productivity in production and are important to set because monetary performance is crucial to the long-term survival of a business.

Question 24

Define business goal

Answer 24

Business goal: are what a business wants to achieve within a specific time frame. The SMART goal criteria are used to create effective goals that are specific, measurable, attainable, relevant, and time-bound to provide a business with clear direction to contribute to business success.

Question 25

explain entrepreneurship

Answer 25

Not all inventors, or innovators use their ideas for starting a business – many will sell their ideas to other businesses who are willing to take over the manufacture and design of the idea. This may involve creativity, but it is not entrepreneurship. Entrepreneurs are hard-working, innovative, persistent and relentless in their desire to succeed. Not all entrepreneurs possess the skills needed to run a successful business. It may take time to develop capabilities such as risk-taking, decision-making and networking skills.

Question 26

person motivation behind starting a business (list)

Answer 26

- desire for financial independence - desire for personal independence - desire to make a profit - desire to fulfil a market need - desire to fill a social need

Question 27

describe the different motivations behind starting a business

Answer 27

Desire for financial independence – a person may seek financial freedom where they can fund a desired lifestyle, without relying on income from an employer. They want: the success of their own actions to directly impact their personal wealth. to live the quality of life they desire without having to work anymore. to chase early retirement. The reality is that most small business owners struggle initially with cash flow and capital backing. However, if they succeed, the rewards can be huge. Desire for personal independence – a person may desire the personal freedom to choose when and where they work, with whom they work, or whether to work from home etc. They: -seek full control over their job and feel constrained following employer instructions. -want to be their own boss and control their own success/ failure. -want flexibility to choose when they holiday and decide their work hours. The reality is most small business owners work relentlessly in the start-up phase. To Make a Profit – the monetary reward. Compensation [ideally] relative to your endeavour! People with a strong work ethic can make more money working for themselves, than working for someone else. Your effort/ productivity is making money for YOU, not a boss. BUT, building up to the point where your business profits, takes time and many businesses break even, or lose money in the start-up phase. Profit follows from hard work and persistence! Fulfil a market need – Have you ever wished you had a product that didn’t exist? A market need is a need that is currently unmet or underrepresented by products and services from competitors in the same industry. Market needs are problems entrepreneurs actively attempt to solve because it can be financially rewarding. The need may be fulfilled by providing a product that better satisfies existing demand, or by creating a new product to meet customer wants and needs. Fulfil a social need – A social need is a need that is currently unmet in society; something that can be improved in society and/or the environment through business activities. Some businesses operate with the primary focus of delivering a social or environmental benefit. They may be a ‘not-for-profit’ organisation e.g. a charity, or social enterprise. Some businesses may be filling a gap in the market for environmental benefit e.g. a battery-operated car. All businesses must aim to profit to continue operating, but NFP organisations use profits generated to reinvest, or allocate to a social or environmental cause. Example: the Salvation Army invests its profits in providing relief to the homeless and underprivileged. Profit/ commercial businesses distribute profits back to owners/ shareholders.

Question 28

commercial enterprises vs social enterprises

Answer 28

commercial: Provide goods &/or services to fulfil consumer needs. Seek to make profit to distribute to owners/ shareholders. Examples: Myer, Woolworths, a Hairdressing salon, takeaway store (fish & chips, or pizza), a builder (sole-trader). Social enterprises: Operate to provide social, educational, religious, or other benefits – rather than the sole objective to earn a profit. Must make a profit to remain viable, but the difference is that profit is not their main reason for existence. Examples: ThankYou, The Big Issue, Orange Sky Laundry.

Question 29

Characteristics of successful BUSINESS MANAGERS

Answer 29

Communication skills: Successful managers clearly transfer information to internal & external stakeholders. Strong communication is two-way. Effective communication provides clear direction for employees. Managers must listen to feedback & support employees to perform their roles better. When managers accept feedback employees feel valued & employee/ manager relationships improve. Determination: Determined managers are hardworking and goal-focused. Determined managers invest the significant work required to develop a new business, and effectively plan a business’s direction, or day-to-day activities. Knowledge: Knowledgeable managers understand the environment they operate in & how to perform relevant business tasks. Being knowledgeable enables managers to choose a course of action in the business’s best interests when change needs to occur. Strong ethics: Managers should act/ behave in alignment with strong moral values. Ethical managers ensure stakeholders & the environment are treated well. The growing trend of ethical consumerism means businesses can attract more customers by operating ethically. Flexibility: Flexible managers adapt to situations easily. Flexible managers adapt to and change business strategy when required to achieve the best outcomes. Society changes rapidly and customer demands continue to evolve meaning the ability to adapt plans quickly is essential for business survival.

Question 30

Characteristics of successful ENTREPRENEURS

Answer 30

Willingness to take calculated risks: An entrepreneur must be able to determine when to take appropriate risks, even when the outcome may be failure. Taking calculated risks gives an entrepreneur access to more opportunities to help grow their business and compete. Strong networking ability: Networking involves being sociable and helpful so you can develop business contacts and support networks. Developing a strong network can allow for individuals outside of the business to offer support and expertise which can benefit a developing business. Determination: Determined individuals are those who are hard working and focused on achieving specific goals. A determined entrepreneur will respond positively to the stresses of start-up and will persevere to drive the business forward. Innovative qualities: Being innovative involves being able to develop new ideas and processes, as well as find new approaches to problems. Innovation can allow a business to distinguish itself from competitors or develop new practices to improve the business’s operations. Resourcefulness: Being resourceful is the ability to overcome problems using what is currently available. Resourceful entrepreneurs help their business minimise costs and maximise profit, particularly in the developing stages. Knowledge: Knowledgeable entrepreneurs understand their operating environment & how to perform necessary business tasks. Knowledgeable entrepreneurs adopt the best strategies and business practices when starting a business to improve its chances for success.

Question 31

List the sources of business opportunity

Answer 31

- Innovation -Recognizing and taking advantage of market opportunities -changing customer needs -research and development -technological development -global markets

Question 32

Innovation- SOBO

Answer 32

Innovation provides new solutions to existing problems and may involve: creating and implementing new ideas; OR significantly improving upon an existing good, service, or way of doing something. Innovation requires researching and developing products that add value to customers’ lives e.g. vaccines are researched to prevent having to use reactive medication. Businesses that fail to innovate risk losing ground to competitors, losing key staff, or simply operating inefficiently.

Question 33

Recognizing and taking advantage of market opportunities- SOBO

Answer 33

A successful business entrepreneur is able to see opportunities others have failed to recognise. Brainstorming (the process of workshopping new ideas), and problem solving are key to exploiting market opportunities. The source of many business opportunities is CHANGE. As society’s needs and wants change, so too do the types of goods and services people want to purchase. Entrepreneurs will be proactive in developing new and innovative products to serve the evolving demands of the market. An organisation’s ability to do this will provide significant opportunities in increasing market competitiveness. -changing demographics -changing societal attitudes and norms -changing laws and regulations -advancements in technology

Question 34

changing customer needs- SOBO

Answer 34

An entrepreneur can recognise changes in customer needs and wants. They aim to ‘predict’ a market problem, create a market solution, and in the process, identify a ‘GAP’ in the market. A ‘gap in the market’ refers to an unfulfilled need or want and presents an OPPORTUNITY for a business to enter into an area of the market currently being un [or under] serviced. - convenience - technology -trends -ethical behaviour

Question 35

Research and development- SOBO

Answer 35

Research and development (R&D) is the activity undertaken by a business to develop new methods and innovations for products. Businesses can observe a target market, analyse competitor products and proactively research opportunities to explore and develop in the marketplace. Researching, collecting and analysing data, conducting tests and prototype development all assist to exploit expansion opportunities in the marketplace. R&D is therefore a source of business ideas. 1. idea 2. gather information 3. analyse costs/benefits 4. create and test product 5. launch product

Question 36

technological development - SOBO

Answer 36

Using new technologies is often a source of ideas for businesses. For example, the growth and development of the World Wide Web, coupled with hand-held devices capable of mobile internet access, has enabled the formation and development of many new business ideas. Example: Airbnb and Uber have transformed the hospitality and transportation industries.

Question 37

Global markets- SOBO

Answer 37

We now operate in a competitive, global marketplace. Often franchises, products, or ideas that succeed overseas are introduced into the Australian market. Several Australian entrepreneurs have also taken Australian goods and services overseas successfully. The free trade agreement with China for example, has provided opportunities for Australian entrepreneurs to export our perceived ‘high quality Australian’ products to China to exploit the fastest growing economy in the world and tap into a lucrative marketplace.

Question 38

importance of goal setting

Answer 38

- provide direction and purpose - motivate workers to work efficiently and effectively - enable the evaluation of results

Question 39

define triple bottom line

Answer 39

the economic, social and environmental performance of an organisation

Question 40

define financial objectives

Answer 40

Financial (or economic) objectives: are targets for improving a business’s overall financial performance e.g. increase profit margins (the revenue left over from the sale of a good or service, after the business has deducted expenses); and increase market share (the portion of the market controlled by a particular company, or product).

Question 41

Importance of goal setting- social goals/objectives

Answer 41

Organisations set social goals/ objectives to benchmark their social performance. A social goal is a target set by a business aiming to improve community welfare, the environment, or employees. Social performance plays an important role in maintaining or improving the public image of a business. Improved business image can increase sales and profit as many customers prefer to support socially responsible businesses.

Question 42

what are SMART goals

Answer 42

Specific: Business goals need to be clear and outline exactly what the business wants to achieve Measurable: Business goals need to be quantifiable so that the business can track progress and identify goals that have been achieved Attainable: Business goals need to be challenging, but also possible for a business to achieve so that it is motivating Relevant: Business goals need to be beneficial to the business and consistent with other goals Time-bound: Business goals need to have specific time frames to help keep the business accountable to its goals

Question 43

Importance of goal setting- vision and mission statements

Answer 43

Organizations use their core values, vision, and mission statements to guide objectives that align with their future direction and purpose. Core values reflect the principles that shape an organization's culture, like service, quality, professionalism, and growth. The vision statement outlines the future goal of the organization (e.g., Melbourne Water’s “working together to ensure a sustainable future”). The mission statement defines the organization's purpose, reason for existence, and method of operation to achieve the vision, serving as a guide for employees and managers.

Question 44

describe the importance of decision-making

Answer 44

Decision-making is key to business success, especially for managers who set goals. They must choose the best course of action by evaluating options and aligning goals with broader business objectives. Managers play a central role by assessing the pros and cons of decisions, considering the business environment, and ensuring strategies align with daily operations. Decisions should be realistic and achievable, positively impacting both long-term growth and daily work for employees.

Question 45

Business concept development process

Answer 45

Initial Idea/Concept: The business idea can stem from personal experiences, interests, market changes, technology, or global trends. Market Research: Collect and analyze industry data to understand customers, competitors, and suppliers. Refine the Concept: Adjust the business concept based on market research, such as modifying the product, pricing, or branding. Feasibility Study: Evaluate the viability and growth potential of the idea, considering investment returns and acceptable risks. Business Plan: Develop a detailed plan outlining key aspects of the business, including staffing, product layout, suppliers, and marketing strategies.

Question 46

protecting a business concept- intellectual property

Answer 46

A very important step in any emerging venture or innovation, is the protection of the Intellectual Property (IP) in a business concept. IP refers to original creations of the mind including inventions, choreography, business logos, poetry etc. Trademark- form of legal protection over the rights of a business's name, symbols, colours, etc. Patent- license that provides a business with exclusive rights to the use of innovative devices, methods and processes Copyright- free and automatic protection for original ideas such as writing, art, sound, films and photographs Domain name- unique website address

Question 47

Relationship between business opportunities and business concept development

Answer 47

Business concept development is one of the first steps when starting a new business and includes stages such as the development of an initial idea, market research and writing up a business plan. Business opportunities arise from a range of sources such as changing customer needs. The business opportunity starts the business concept development process where business owners evolve the idea in terms of what the business sells and its competitive advantage. Market research is conducted to determine whether the concept has the potential to succeed. For example, active wear businesses have capitalised on the opportunity presented by changing customer needs towards an active lifestyle. The initial idea to produce a range of activewear was then developed through business concept development to gain a competitive advantage by tailoring specific clothing needs for different physical activities.

Question 48

describe initial market research

Answer 48

Market Research is the process of collecting and analysing market information (such as the activities and behaviours of customers and competitors in a specific industry). Statistics and other market research data help you understand your potential customers and their needs to: make informed decisions about marketing your business determine what competitors are doing in the hope of gaining competitive advantage. Some of the most popular successful companies in the world have failed to analyse their market before launching a product e.g. ‘New Coke’.

Question 49

qualitative vs quantitative data

Answer 49

Qualitative data: non-numerical data such as opinions, or written survey responses. For example, questions may be asked such as: ‘What are the strengths and weaknesses of our competitors?’; or ‘What are customers looking for in their products?’ Quantitative data: numerical data, such as figures and statistics. For example, questions may be asked such as: ‘How many competitors are in the market?’; or ‘What price are customers willing to pay for the good or service?’

Question 50

steps to performing market research

Answer 50

1. Identify your objective. What type[s] of decisions are you trying to make? For example, determining whether your target market is appropriate for your product/ service? 2. Identify the type of information required to meet your objective For example, information around how likely your target market is to purchase/ use your product. 3. Gather the relevant information [from appropriate sources] For example: surveys, focus groups, customer observation. 4. Analyse and interpret results. 5. Evaluate according to your initial objective. Once market research is complete, managers should refine their planning to reflect the researched needs and wants of the target market. This may include, but is not restricted to, modifying the product, packaging, features, marketing or promotion of the product, business name, location, pricing etc.

Question 51

describe initial feasibility studies

Answer 51

Once market research is completed, the manager needs to assess if the business idea is feasible, which is done through a feasibility study. This determines whether the concept can succeed based on factors like return on investment and risk. Feasibility studies are essential for business planning and securing finance. Market feasibility: Checks if the business can succeed long-term based on market conditions. Operational feasibility: Looks at the required employees, equipment, and resources needed. Commercial feasibility: Ensures the entrepreneur can afford startup costs and if the market will support the business. Technical feasibility: Assesses the business owner’s skills and the resources needed for success. Legal feasibility: Ensures the business complies with relevant laws and regulations.

Question 52

areas covered in a feasibility study

Answer 52

Business Idea & Concept: Describes the products/services and the resources needed to run the business. Key People Profiles: Details the skills, experience, knowledge, and qualifications of the key team members. Market Description: Identifies the target market, market size, potential demand, and growth opportunities. Supply Analysis: Evaluates the life cycle of the product or industry. Entering a saturated or declining market limits growth, while emerging markets offer better potential. SWOT Analysis: Identifies competitors and explores ways to differentiate the business (e.g., price, quality). Financial Feasibility: Includes sales forecasts, startup costs, working capital needs, and break-even analysis. Personal Circumstances: Assesses the owner’s skills, experience, commitment, and financial position. Overall Concept Analysis: Reviews the viability of the entire business idea, considering all factors.

Question 53

The contribution businesses make to the Economic & Social Wellbeing of a Nation: ECONOMIC WELLBEING

Answer 53

Economic wellbeing means people have their basic survival needs met and have sustainable income and assets so they can prosper e.g. food, clothes, housing, education and leisure. During and after crises, people may need to make short term decisions to survive that have long term consequences e.g. pulling children out of school to work. Economic growth means an increase in the total amount of goods and services produced per head of the population over time. We measure this by the Gross Domestic Product (GDP) which is the total value of all final goods produced by a country over a set period.

Question 54

What are some of the ways that businesses contribute to the economic wellbeing of a nation? - providing employment

Answer 54

Providing employment: Businesses employ human labour to produce goods and services. When people are employed, they earn wages. They then use their wage to buy goods and services which supports growth of Australian businesses and creates more jobs. ABS data shows over 4.8 million people in Australia are employed by small businesses (making them the biggest contributor to Australian employment).

Question 55

What are some of the ways that businesses contribute to the economic wellbeing of a nation? - generating tax revenue

Answer 55

Generating taxation revenue: Tax is a compulsory payment to the government, used to finance the provision of public goods and services. Businesses that earn a profit must pay a proportion of their earnings each year to the government in tax. Not only do small businesses pay tax on their earnings, but their employees also pay income tax on their wages too. Tax is used to provide goods and services to benefit the whole community, such as a better education and healthcare. The businesses who employ and pay the workers contribute to this government revenue.

Question 56

What are some of the ways that businesses contribute to the economic wellbeing of a nation? - economic growth

Answer 56

Contributing to economic growth: The overall function of business within the economy is to produce and sell goods and services individuals want to buy. When businesses sell more, they increase the total value of goods and services produced and sold within an economy, resulting in economic growth. If an economy’s GDP grows by a greater amount than its population, then material living standards of the population will likely improve.

Question 57

What are some of the ways that businesses contribute to the economic wellbeing of a nation? development of infrastructure

Answer 57

Development of Infrastructure: Infrastructure is the basic physical and organisational structures required for the operation of a society such as roads, buildings and power supplies. Each level of government in Australia provides infrastructure such as hospitals, schools, electricity, gas and other essential services. While governments own a lot of these projects, they need help from businesses to build them which means businesses play a critical role in ensuring the facilities and structures used by an economy function correctly. These businesses employ workers which creates jobs and boosts employment. Businesses are also key users of infrastructure which stimulates need for infrastructure improvements, creating more jobs.

Question 58

What are some of the ways that businesses contribute to the economic wellbeing of a nation? - trade/export earnings

Answer 58

Trade/ Export Earnings: International trade is the exchange of goods and services between different countries. Australian businesses sell products overseas (exports). Exports positively impact economic growth of a nation as money (export income) is being fuelled into the local economy from businesses in different countries. Importing is purchasing products from another country. Importing enables Australian businesses to import resources from overseas, gaining access to cheaper materials which can reduce business costs and lower product prices. Businesses are also better able to satisfy consumer wants and needs because they have access to a greater variety of goods and services. The government has signed a range of ‘Free Trade’ agreements with countries such as China, Japan, Indonesia and Korea in recent years to enable freer flowing movement of our goods/services to other countries. A Free Trade Agreement is an international treaty (agreement) between two or more countries that reduces or eliminates barriers to trade in goods and services, as well as investment e.g. tariffs.

Question 59

What are some of the ways that businesses contribute to the economic wellbeing of a nation? - leaders in research and development

Answer 59

Leaders in Research and Development: R&D involves directing resources e.g. money towards discovering, creating, and introducing new products and processes. Through R&D businesses can test ways to improve existing products, develop new business processes, or create entirely new products. Businesses can therefore meet customer demands, cut costs and improve the affordability of their products. This improves standards of living as consumers can purchase more goods and services for the same spend – access to goods and services and standard of living are measures of economic wellbeing.

Question 60

describe the contribution businesses make to the SOCIAL wellbeing of a nation

Answer 60

A society is a broad grouping of people e.g. a nation, sharing the same spatial or social territory with common traditions, institutions, and collective activities and interests. Social wellbeing is a measure of the quality of life individuals have, reflected by their non-material living standards. For example, social wellbeing can be influenced by factors such as general happiness, crime rates, environmental quality, education and the accessibility of healthcare. The OECD (Organisation for Economic Cooperation and Development) publishes a survey every year looking at a range of measures of how people in a nation live. Australia ranks highly in this index and the contribution of businesses is part of the reason. Australia performs well in many measures of wellbeing relative to other countries in the index. Australia is ranked top in civic engagement and above average in living conditions, life expectancy and general life satisfaction. However, Australia does rank below average on equitable distribution of resources between advantaged and disadvantaged schools, and work-life balance.

Question 61

how do businesses contribute to the social wellbeing of a nation- providing employment opportunities

Answer 61

Employed people are likely to be happier, and more fulfilled. They experience less financial stress because they earn an income. The unemployment rate is also reduced, which decreases homelessness and crime rates. More people can afford housing, so there is less incentive to commit crime for money.

Question 62

how do businesses contribute to the social wellbeing of a nation- implementing employee wellbeing programs

Answer 62

Programs such as counselling and regular check-ins with each employee can give employees the opportunity to express their emotions and improve their mental health. This positively impacts quality of life.

Question 63

how do businesses contribute to the social wellbeing of a nation- implementing environmentally friendly policies

Answer 63

Businesses that focus on environmentally friendly production methods and reduce waste help to improve, protect, and preserve the environment. This contributes to a sustainable quality of life.

Question 64

define culture

Answer 64

Culture is the ‘personality’ of an organisation- the values, attitudes and beliefs that guide members’ behaviour. It is difficult to define but integral to business success.

Question 65

methods by which a Culture of Innovation and Entrepreneurship may be fostered in Australia: government investment in research and development

Answer 65

Government investment in Research and Development: Countries must spend to generate new knowledge, products, services, and processes. This is vital for economic growth, technology innovation, and international competitiveness. R&D is expensive and time-consuming, meaning small businesses are often discouraged from paying for studies or technology to research. To combat this the Australian government has implemented a number of initiatives to make R&D more accessible and affordable for Australian businesses, strengthening our culture of innovation and entrepreneurship. For example: ‘Innovation Connections’ a service providing entrepreneurs with advice and funding for research projects.

Question 66

methods by which a Culture of Innovation and Entrepreneurship may be fostered in Australia: council grants for new businesses

Answer 66

A council grant is a one-off financial payment from a local council to a business, which does not need to be repaid. Grants aim to support business ideas and development by encouraging entrepreneurs to convert ideas into opportunities because they can help cover establishment costs such as purchasing machinery and equipment, or labour costs incurred during an expansion. Council grants may also reduce the cost of R&D projects, which encourages innovation.

Question 67

methods by which a Culture of Innovation and Entrepreneurship may be fostered in Australia: School-based educational programs in entrepreneurship

Answer 67

School-based educational programs in entrepreneurship: Government at different levels run various programmes to encourage innovation in our primary, secondary and tertiary education systems. These programmes introduce students to the business world, allowing them to develop business knowledge and problem-solving skills. It is estimated that 75% of the fastest growing jobs rely on science, technology, engineering and mathematics (STEM) so the Federal government invests in programs to develop young people in these areas.

Question 68

methods by which a Culture of Innovation and Entrepreneurship may be fostered in Australia: Creation of regional business start-up hubs

Answer 68

Creation of regional business start-up hubs: A business hub is a place where businesses go to seek support and have a space to use without necessarily starting up their own office. They aim to provide ‘ideal’ conditions for founders to quickly grow their young business. Founders may be offered subsidised office space, networking opportunities, practical support (e.g. skill enhancement workshops and advisory services) and access to investors, talent and mentors. Hubs promote innovation and provide regional entrepreneurs similar opportunities to their city counterparts. LaunchVic is a government organisation responsible for providing assistance and support for the running of multiple start-up hubs across Victoria.