Buss1 Enterprise

Revision cards for Buss1 topic 1: Enterprise 

Covers:

  • Enterprise and entrepreneurs 
  • Risk & Reward
  • Opportunity Cost
  • Motives for becoming an entrepreneur
  • Government Support
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What is Enterprise?

  • The willingness to undertake new ventures and show initiative with a view to gaining rewards
  • Enterprise is the starting point to any business activity.
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What is an entrepreneur?

  • A person who spots an opportunity and show initiative and a willingness to take risks in order to benefit from potential rewards.
  • Entrepreneurs make use of the resources available to them to set up or develop a business. 
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Risks

Financial

  • Money Invested
  • Salery Foregone

Esteem

  • Fear of failing
  • Proving self

Commitment

  • Loss of personal/social time
  • Time and effort
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Rewards

Profit Motive

  • Return on Investment
  • Future Security

Being own boss

  • Not taking orders
  • Making decisions

Self-actualisation

  • Self satisfaction
  • Achievement
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Opportunity Cost

The cost of an activity expressed in terms of the next best alternative which has to be given up when making a choice. 

  • The 'real cost' of a course of action, taking into account not only the financial costs but also the opportunity foregone.
  • Every time one decision is made an alternative decision is dismissed.
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Motives for becoming an Entrepreneur

  • Market a new or innovative product
  • Escape an uninteresting job
  • Be their own boss
  • Be creative
  • Make their own decisions
  • Persue an interest or hobby
  • Exploit a gap in the market
  • Provide a service or product 
  • Work from home
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Government Support

Government Grants - Sums of money given to a business for a specific purpose or project. They often contribute to the costs of a project rather than funding the whole thing. Grants do not usually have to be paid back. 

Government grants come from a variety of sources, for example:

  • Central and local government
  • European Union
  • Regional development agencies in England 
  • Princes Trust
  • Business Link

They are usually awarded for one of the following purposes:

  • Innovation, research and development
  • Training
  • Economic regeneration 
  • Encouraging young people to start their own business
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