enterprise Flashcards
(24 cards)
what is enterprise
formation if new business or development of new good or service to be introduced into market
What are the primary secondary and tertiary sectors
Prinary-production of raw materials such as farming, oil companies
Secondary- Using primary resources snd turning then into products such as manufacturers and printers
Tertiary- Provide services such as estate agents and delivery
What is an sme
a small medium enterprise euth a turnover of less than 50 million.
Small have less than 50 empolyees
Medium less than 250
Importance of smes
create jobs-spend tax and spend money in economy on other things
buy products and services from other businesses generateing wealth locally and nationally
smes themselves pay tax to government corporation tax
introduce new tech and innovation into market (cone uo with new tech and services for people in uk and abroad)
Downsides of smes
-small scale so more likely to fail in times if recession and hardship
-harder to raise finance due to size
-less recognition so hard to compete with larger firms
-smaller budgets cant invest as much into research and development and marketing
What is a need and what is a want
need- (limited)must be satisfied if they are to survive such as food shelter and water
want- (infinite)aim for a better quality of life such as designer clothes, holidays, phones
What are opportunities in the market
Satisfying needs and wants
Gap in market
Offer solution to a problem
Why are markets always changing
needs and wants change due to population growth and income changes so new opportunities always arise
What two things does an entrupeneur do
-provide good or service for want and need
-create and set up business having an idea and financial capacity to do so
What is an entrepreneur
someone who starts and runs a business and make a product or provide a service
Roles of an entrepreneur
-Setting up and owning a business(provide finance to start it and for growth)
-Organisation and management of business such as hiring staff
-Risk taking- no guarantee business will succeed
-Make decisions on aspects of business such as financial
-Innovate new products it services to market
Financial motives of entrepreneur
Earn a profit
Non financial motives
-Turn hobby or pastime into a business
-Use redundancy money to create employment
-Be own boss
-Take ethical stance(intention of helping others)
4 Charectistifcs of an entrepreneur
Risk taker-no guarantee of success risk own money
Effective organiser- Undertake wide range of activities so need to be organised
Innovative and creative- New concepts and ideas for product or service
Hard working- work long hours and alot of pressure
Importance of entrepenures to economy
-new jobs and new products bought in economy
-taxation of business
-vision and willingness to drive businesses forward
-innotive in market such as james dyson bring new range of products into market
what is a stakeholder
a group or organisation affected or has interest in operations and objectives of a business
What are shareholders desires
long term growth and high profits and say in business
Managers desires
obtain long term objectives and effectively manage business
Employees looking for
high pay, job security, good working conditions
Customers desires
low prices,high quality, good service
Suppliers desire
fair price for products provided, paid in time
Goverment desires but is affected by
-increased tax revenue, high employment
-increased pollution and traffifc
Local community desires but is affected by
-higher regional wealth, improved infrastructure
-pollution,traffic
Competition
sales, income/turnover
