enterprise

Question 1

what is the meaning of enterprise?

Answer 1

enterprise is the formation of a new business or development of a new good or service to be introduced to the market.

Question 2

what are SMEs?

Answer 2

small and medium-sized enterprises.

Question 3

what is a need?

Answer 3

a need is something essential to survive e.g., food, water, shelter.

Question 4

what is a want?

Answer 4

something we desire but is not necessary for survival e.g., car, mobile phone.

Question 5

how can wants and needs provide opportunities?

Answer 5

-opportunities arise when a market need exists.
-needs/wants are constantly changing, new opportunities arise.
-therefore an entrepreneur with an idea, commitment and funds can easily succeed.

Question 6

what is an entrepreneur?

Answer 6

-an entrepreneur is someone who starts and runs a business.

Question 7

characteristics of an entrepreneur

Answer 7

-being a risk taker
-having product knowledge
-hard-working
-passionate/ambitious
-have perseverance
-taking initiative and being proactive
-having creativity and innovation
-being an effective organizer.

Question 8

importance of the entrepreneur to the success of the economy

Answer 8

-bring new ideas to the market
-create new jobs
-provide new products
-government benefits from taxation that is generated from businesses.

Question 9

entrepreneurial motives (financial)

Answer 9

-to earn a profit
-to provide a source of income.

Question 10

entrepreneurial motives (non-financial)

Answer 10

-be their own boss
-follow a dream/passion
-give themselves a job
-for ethical/social reasons.

Question 11

what is the primary sector?

Answer 11

extractive sector-produces raw materials e.g., iron ore and oil.

Question 12

what is the secondary sector?

Answer 12

manufacturing and construction industries make, build and assemble products.

Question 13

what is the tertiary sector?

Answer 13

services that give value to people but are not physical goods. services are sometimes classified as direct services (to people), e.g. the police force, hairdressing, and commercial services (to business) e.g. business insurance, financial services etc.

Question 14

importance of entrepreneurs and SMEs to the primary sector of the UK economy

Answer 14

-in some rural areas e.g. west and mid wales and the scottish highlands, the primary sector is crucial to the local economy.
-we also still get a great deal of food from the UK agricultural industry, even though numbers employed are very small.

Question 15

importance of entrepreneurs and SMEs to the secondary sector of the UK economy

Answer 15

-many entrepreneurs believe that manufacturing in the secondary sector creates wealth when compared to the service sector.

Question 16

importance of entrepreneurs and SMEs to the tertiary sector of the UK economy

Answer 16

-in terms of employment, the tertiary sector is by far the most important in the UK employing approximately 80% of those who are in employment.
-the tertiary sector has grown considerably over the past twenty years and it can be argued that the tertiary sector is the most important in current times.