Business Studies. Unit 1.

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.

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.