enterprise Flashcards
(17 cards)
what is an enterprise in business?
the formation of a new business or development of a new good/service to be introduced to the market
what are needs and wants in business?
- needs are essential for survival e.g. food
- wants are non-essential but desirable e.g. holidays
what is an SME?
- small-medium enterprises
- businesses with fewer than 250 employees
how can satisfying needs and wants create opportunities for entrepreneurs?
- identify unmet or poorly served needs and wants in the market
- allowing them to create goods or services to fill those gaps
what are common ways entrepreneurs identify business opportunities?
- spotting gap in market
- solving problems consumers face
- responding to local needs
- trends
why might someone start a business if there’s high unemployment locally
- to create own job
- provide employment
What is an entrepreneur?
Someone who sets up a business, taking on financial risks in the hope of making a profit.
What does an entrepreneur do to create and run a business?
- Has the idea
- Takes initiative and innovates
- Spots market opportunities
- Organises resources like finance, labour, and materials
- makes key decisions
- Faces risks and rewards
what are the financial motives of an entrepreneur?
- make a profit
- gain financial security
- provide employment for self
what are the non-financial motives of an entrepreneur?
- self-satisfaction
- personal ambition
- flexibility
- passion for product
what is a social enterprise?
- a business whose main aim is to benefit society
- surplus income is reinvested into a cause like a charity
what are the key characteristics of an entrepreneur?
- determined
- organised
- risk-taker
- innovative
what skills and experiences help entrepreneurs to succeed?
- training or qualifications
- experience in job or hobby
- knowing personal strengths/weaknesses
what is the importance of SMEs to the UK economy?
- provide employment
- create new products
- contribute to economic growth
what is the economic impact of entrepreneurs and SMEs?
- job creation
- increasing competition
- contributing to tax
- driving exports
- supporting local communities
what are some potential drawbacks of being an entrepreneur?
- loss of income
- low sales
- unexpected costs
- long hours
- damage to reputation
- may lose home
who are the main stakeholders affected by a business?
- owners: profit
- employees: jobs, pay
- customers: quality, price, service
- suppliers: payments, orders
- gov: tax, employment
- local community: jobs
