1.1 Enterprise and Entrepreneurship

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  • 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
    • 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
    • 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
    • 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

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