Enterprise Flashcards
Definition of entrepreneur
An Entrepreneur is someone who starts and runs a business to try create a profit by selling making and selling a product or service, who also can employ people.
Definition of enterprise
A legal entity possessing the right to conduct business on its own
Why do people start businesses
To gain a profit to provide for themselves
To turn a hobby into a business
To use redundancy money and provide themselves with employment
To be their own boss
To help out their community
What is a need
People have limited needs to survive such as food, water, shelter and clothing
What is a want
Wants are unlimited as people aim for a higher quality of life such as better/more food, better housing etc.
Characteristics of entreprenuer
Risk taker (risking capital)
Product knowledge
Hard working
Be passionate/determined
Taking the initiative and being proactive
Being creative
Being an effective organiser
Importance of entrepreneurs
Entrepreneurs are important as
Entrepreneurs are innovators bring new ideas to the market and drive development and competition
Entrepreneurs are innovative as they provide new and better ways of doing things
Entrepreneurs have a vision to take risks and drive the business to help grow the economy
Entrepreneurs help the economy by creating new jobs
Help boost the economy by providing new products
Increases exports (helps balance of payments)
Government benefit from the revenue the business creates with taxation
What do the primary sector do
Produces raw materials e.g iron ore that goes into making steel
What do the secondary sector do
Manufacturing and construction industries make build assemble products
What do the tertiary sector do
Services that give value to people but are not physical goods sometimes direct services e.g hairdressing, police etc. But can give physical goods from the service.
How much does the tertiary sector employ
80% while secondary 18% Primary 2%
How much do SMEs employ in the economy
50% worldwide
Who are typical stakeholders
Customers, investors, managers, employees, communities and suppliers.
What are the properties of an SME
Has less than 250 employees and turnover less than €50 million
