1.1 Enterprise and Entrepreneurship
- Created by: pinkbeer
- Created on: 23-07-19 11:18
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- Enterprise and Entrepreneurship
- How new ideas come about.
- Advances in technology.
- Changes in what consumers want.
- Lifestyle and technology have an impact on what consumers what.
- Need to listen to customers to retain customers and attract new ones.
- Business can use data to identify customers wants and needs.
- Data can also help businesses to rethink the way they design produce and market their products
- Can find out customer interests by trailing new products.
- Products and services becoming obsolete.
- Changes in Technology
- Business have to be flexible and innovate.
- New products and ideas allow a business to stay up to date.
- Making expensive technology affordable.
- Opportunities for entrepreneurs to start their own business.
- New business and products and services.
- E-Commerce, M-Commerce
- E-commerce can help a small business trade with customers all over the world.
- Can help bring new business ideas straight to the marketplace.
- Social Media
- Inexpensive way to promote a business and to interact with customers.
- Encourage customers to buy their products.
- Reduce work involved in marketing.
- Products and services becoming Obsolete.
- Most products have a limited lifespan.
- Product life cycle describes the sale of a product over time.
- Technology is one reason why products become obsolete.
- Products can also become obsolete due to changes in fashion and taste.
- Entrepreneurs come up with new business ideas.
- Adapting existing product
- So that it is suitable for different customers and markets
- Less risky option than launching a brand new product
- Modified to appeal to different customers and cultures
- Adapting promotion stratergy
- responding to new fashions
- changing a products brand name
- Deciding whether to adapt
- Adapting will not always be succesful
- Even if they do succeed they may not do well enough to make the adaption process worthwhile
- Business have to balance customer and market needs with cost of development
- Makes it quicker for them to launch new products
- Business might have no choice to make significant adaptations if customers begin to change
- Create a completely original idea
- Vey hard for an entrepreneur to come up with a new idea
- Technology have encouraged new ideas
- How can I improve on this product or service
- Can I do this better or differently than existing businesses
- Is there a gap in the market that I can fill
- Adapting existing product
- Risk
- Even a small crisis could lead to a business to fail
- Business Failure
- Cash flow
- May not have enough money to buy supplies or pay wages
- Unexpected costs
- Drop in sales revenue
- Running out of raw materials
- Recession
- Behaviour of suppliers
- Competition
- Financial Lost
- Lose money that they invested
- Damage businesses reputation
- Error or oversight in business planning
- Competitive risk
- Technical risk
- Financial risk
- Lack of Security
- Don't have regular wage, sick pay or a pension
- Doesn't offer job security
- Important for entrepreneurs to work how long it will take befor =e the business starts to make a profit
- Impact on entrepreneurs health
- Intuition
- Critical decisions intuitively rather based on data
- Good for seeing big picture
- Judgements connected to feelings
- Rewards
- Thrill of founding a successful business
- Motivated by building a business
- Enjoy providing jobs or providing a product or service
- Value receiving rewards
- Driven by making a profit
- Take a risk of financial failure to make a profit
- Most new businesses suffer setbacks
- Enjoy working for themself
- Thrill of founding a successful business
- Business activity
- Producing goods and services
- Make goods and services that satisfy customer wants and needs
- Rise standard of living
- Profit reinvested to lead to further growth
- Meeting customer needs
- Will not succeed if it doesn't meet customer needs
- Needs to develop a relationship
- Fast delivery
- Reasonable price
- Friendly and helpful customer service
- Enogh stock
- Easy to navigate website
- To add value
- Producing goods and services
- Adding Value
- Difference between final price and cost of production
- Branding
- Defining the business
- When a customer can connect emotionally they are more likely to buy from that business
- Can create a lot of brand loyalty
- Convenience
- Great customer experience can encourage customer loyalty
- Easy payment methods
- Being available
- USP
- Best Price
- Best Quality
- First in the market
- Quality and design
- Have to show that the customers can rely on the business
- If a product looks attractive people are more likely to pay a higher price
- Role of entrepreneur
- Organising resources
- Key resource is finance
- Needs to raise enough money to set up the business
- Needs to think ahead of how to raise additional finance
- Another key resource is staff
- Have to be able to motivate, lead and mange people
- Making desicions
- Has to demonstrate a new concept
- Must have long-term vision
- Has to focus on each small short-term
- Be capable of solving customer problems
- Have to know their market well
- Organising resources
- How new ideas come about.
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