Enterprise (Unit 1)

AQA Business Studies GCE Unit 1 - Enterprise (chapter 1)

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Enterprise and entrepreneurs
Key Terms
- Almost any business can be called an enterprise
- The term usually refers to the process by which new businesses are forms and new products
created an brought to the market
Enterprise skills
- Skills that allow an individual or organization to respond effectively to changing market
- Individuals who have an idea that they develop by setting up as new business and encouraging
it to grow
- They take the risk and the subsequent profits that come with success or the losses that come
with failure
Relevant skills
Take advantage of opportunities
Risk Taker

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Importance of risk and rewards
Failure occurs for a number of reasons
- Lack of finance
- Skills shortages
- Poor infrastructure
- Complexity of regulations
The ability to evaluate the risks and uncertainty is an important element of successful
Entrepreneurs are happy to take risks if the potential rewards are great enough
This also depends on them doing their research to ensure that all reasonable steps are taken to
minimize the probability of failure
The notion of opportunity cost
Opportunity cost
- The…read more

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A change in the political climate so that the government supports enterprise and the
entrepreneurial spirit
- Increasing affluence, which ofteb means that people start to look for meaning in their lives
Entrepreneurs are extremenly diverse
Statistics suggest that most successful entrepreneurs start to build their businesses before the
age of 44
Most entrepreneurs want to make money, but some will want to gain more freedom at work, or
sustain a going concern such as a family business
Government support
The government believes that an…read more


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