Unit 1 AOS1 - The Business Idea Flashcards
(30 cards)
Entrepreneurship
An individual who starts and operates a business, while taking on risks in hopes of making a profit.
Business Opportunity
A set of circumstances an individual can perceive as an avenue to success.
Business Concept
The idea that occurs when assessing the business opportunities.
Innovation
The process of creating new products or ways of doing business. It involves improving an existing to meet the needs and wants of consumers.
The Desire for Personal and Financial Freedom
Entrepreneurs are able to set their own hours and hourly wage as well as choose their work environment.
To Fulfill a Social Need
Fulfilling a community and environment need, usually not expecting anything in return.
To Make a Profit
Despite business owners not making much monetary reward from the beginning, after much hard work and dedication they can enjoy their monetary benefits later down the track.
To Fulfill a Market Need
When a particular good or service is not in the market, there is a ‘gap.’ and many can be motivated to fill this.
Business Manager
Run a business on a day-to-day basis, ensuring the company makes profit. They minimize risks and make calculated choices to ensure a good outcome for the business.
Vision Statement
Describes where the business wants to be in the future.
Mission Statement
Describes what the business does and how it will achieve its vision.
Decision Making
The ability to identify the options available and then choose a specific course of action from the alternatives.
Trademark
A right granted over a letter, word, phrase, number, sound, smell shape, logo,
picture or aspect of packaging that a business will use to represent its products and
services.
Patent
A right granted for any device, substance, method or process that is new,
inventive and useful.
Copyright
This is free and automatic protection of original works, such as writing, music, art, films,
sound recording, broadcasts and computer programs.
Design Rights
These are rights given to the owner to commercially use, license or sell a design.
Domain Name
A potential owner can register a domain name (the business’s unique address on the
internet) so that nobody else can register it.
Market Research
The process of gathering and analyzing information concerning a specific market.
Steps for Market Research
- Identify what information is required to make a decision about the potential of the business.
- Gather information from appropriate sources.
3.Analyse and interpret the results that will assist in decision making for the business idea.
Feasibility Study
An assessment of the business idea’s potential for success. Determines how practical the idea is and if it would successfully merge into the market.
Government Investment in R&D
-Grants (non-repayable)
-Tax incentives
-Direct funding (repayable)
Council Grants for New Businesses
Local councils provide businesses grants and funding programs to businesses located within the council.
Business Mentorships
A person with extensive business experience who can guide a business owner with less experience. They usually provide key knowledge, advice and wisdom. Allows new owners to develop their skills for free and at a faster rate.
Formal Mentorship
-Provided by the government or not-for-profit organizations.
-Offer frequent sessions over a long period of time.
-Well-structured and organized.
