Enterprise Flashcards
Define ‘enterprise’.
When an entrepreneur takes a risk and sets up and runs a business selling goods or services.
Define ‘SME’.
Small and Medium Enterprises: is made up of enterprises which employ fewer than 250 people and which have an annual turnover not exceeding 50 million euros.
Define ‘entrepreneur’.
Someone who is a risk-taker by setting up their own business based upon personal experiences or hobbies.
Characteristics of entrepreneurs.
- Risk-taker
- Self-determination
- Self-confidence
- Good judgement
- Creative
- Can use their initiative
- Being a self-starter
Motives to become an entrepreneur.
- Financial reward
- Be your own boss/independence
- Helping others
Define ‘primary sector’.
Businesses that extract raw materials, e.g. farming, oil, mining.
Define ‘secondary sector’.
Businesses that turn raw materials into finished goods in a factory setting.
Define ‘tertiary sector’.
The shops that provide services and sells goods to the public.
Importance of SMEs to the UK economy.
- 99% of all UK businesses are SMEs that employ over 60% of all private sector employment. They are vital to the economy as without them most people will not have jobs and so have little income to spend.
- Without SMEs, governments would not collect as much tax revenue to fund schools and hospitals.
- Finally, SMEs also provide many opportunities to various stakeholders.
Business Opportunities.
Business opportunities usually exist in the form of filling a gap in the market, satisfying needs and wants of consumers. Meeting consumer needs is vital for a business to gain sales and this can be done by undertaking market research of the local area to see what needs and wants are currently not satisfied.
Define ‘stakeholder’.
Anyone that has a personal interest within a business.
Examples of ‘stakeholders’.
- Employees - want job security and high pay.
- Customers - want low prices and quality products.
- Shareholders - want dividends.
- Suppliers
- Managers
- Banks
- Local Communities
