Business topic 1
- Created by: k.gwinnell14
- Created on: 03-12-18 10:35
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- 1.1 Business Enterprise
- Coming up with new products
- Invention
- The Creation of new products or processes
- usually as a result of extensive research
- Innovation
- the practical application of an idea or invention.
- turn into something they will pay for.
- Invention
- Risk
- Any situation that brings exposure top danger
- Business Failure
- Unable to make sufficient profit
- 60% of business failure in first 5 years
- Financial Loss
- Generally expected tat a business won't make any profit within first 3 years
- Could lose the money invested
- Lack of Financial Security
- Given up a job to set up business with regular income and security.
- don't have regular income, or holiday, you don't know when your getting paid which can effect quality of life.
- Business Failure
- Any situation that brings exposure top danger
- Reward
- The benefits that can be obtained by someone who puts in the effort required.
- Business Success
- Becoming a house hold name
- Win awards
- Grow their business
- Create new opportunities
- Build a positive reputation
- Financial Rewards
- owing your own business can mean huge financial rewards.
- you can earn a lot more from owning your own business and a lot more than working fore someone else.
- Independance
- when running a business you have a lot more freedom an control.
- you can chose when you work, your holidays, and chose who you work with.
- Business Success
- The benefits that can be obtained by someone who puts in the effort required.
- Purpose of business activity
- to provide people with a good or a service
- to meet customer needs- means providing goods that customers will want to buy
- Add value- improve as product so customers are willing to pay more for it.
- Convenience- e.g. mobile hairdresser
- Brand image- customers will spend more on a product if they know that brand is trustworthy and desirable.
- Improve the quality or design
- USP- something that makes it stand out
- Entrepreneurs
- is someone who takes risks and organises the factors of production.
- they have to organise the factors of production
- have to keep on top of the day to day tasks of running a business
- E.g they have to make sure the business has all the right resources such as money and supplies.
- Takes risks
- lots of unknowns involved in running a business, and can be very risky. they can risk a business plan to reduce risks but still likely to fail.
- Make business decisions
- there are lots of decisions that need to be made when running a business.
- e.g an entrepreneur needs to be able to decide on the businesses aims and objectives, its structure , who to employ and how to grow.
- they have to organise the factors of production
- is someone who takes risks and organises the factors of production.
- Coming up with new products
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