1.1 Enterprise and Entrepreneurship - 1.1.1 The dynamic nature of business

Why new business ideas come about: Changes in Tech

Since the invention of the internet in 1990, businesses have found a new cheaper way to reach the consumer - online. For example, Amazon is an entirely online shopping experience. 

Small businesses are now able to set up and sell virtually anything online due to websites such as eBay, Etsy, and ebid

New technology advancements in virtual reality means there are lots of new products in the gaming market.

Possible advancements in robots in the future means dozens of the new products can be invented 

Businesses can use social media to find out what consumers want and need so that they can produce products and services to meet those wants and needs.

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Why new business ideas come about: Changes in what

Consumers are now demanding wearable technology 

We are working more so have less time, so ready meals are in high demand in order to cater for those consumer needs. 

Consumers are now demanding organic, free range, sustainable and eco-friendly products as we become more aware of our impact on the environment.

Consumer tastes change over time, this means a business is at risk if they do not keep up with the current trends

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Why new business ideas come about: Products and se

Products may become unused or out of date, possibly by another product replacing it by being better and having more features or being easier to use etc. 

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How new business ideas come about : original ideas

Ones that have not been used before to create a product 

  • This may solve problems
  • the entrepreneur has a passion or interest in that area
  • a gap in the market has been spotted
  • research has been carried out into the wants and needs of shoppers and be creating products to meet those needs

A successful business is one that spots an opportunity to make a profit 

  • could be an idea that no-one has thought of before
  • lots of businesses already making a healthy profit
  • could make a difference to society 
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How new business ideas come about: adapting existi

A business could create a new product by:

  • Mix and match
  • A new version of an old product
  • A cheaper version of an old product 

Mix and match - 2 products combined: watering can and mister, two in one cutlery, hat with earphones and clock-radios

A new version of an old product - XBox releasing a new console, Land Rover improving their cars each year

A cheaper version of an old product - Aldi's clothing collection, mimicking the design of many popular designer brands. 

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