Business Studies. Unit 1.

Business Start-up.

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Business Start-up.

Entrepreneurs.

Enterprising. - The ability to spot a business opportunity and take risks to organise the factors of production. These are land, labour and capital.

Land. - Natural resources. Eg: Water and land on which a business stands.

Labour. - People who work in a business.

Capital. - Money for business purpoese: Machines and premises.

Profit. - Total revenue (Money from the sales.) - Total costs (Rent and wages.).

Characteristics of an entrepreneur.

  • Hardworking.
  • Determined.
  • Innovative.
  • Organised.
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Business Start-up.

Why does the government encourage enterprise?

  • Provides Jobs.
  • Reduces unemployment. - Less Job seeker's allowence to pay out.
  • Creates more choice for the consumer.
  • Leads to lower prices as a result of increased competition.
  • Increases trade.

Factors of production. - These are the four things that are essential for a business to exist. They are land, labour, capital and enterprise.

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