- ENTREPRENEUR- someone with an idea for, and the skills and determination to start a business. They are willing to accept risk.
- ENTERPRISE- The process by which new businesses are formed and new products and services are created.
- OPPORTUNITY COST- The cost of the next best alternative forgone.
- SOCIAL ENTREPRISES- Social mission driven organisations which trade in goods/services for a social purpose.
Characteristics of an Entrepreneur
- Risk Taking
- Can spot Opportunities
- Relevant Skills
-return on investment
Being own boss
-not taking orders
- In business everytime one decision is made an alternative decision has been dismissed
- The "real cost" of any course of action, taking into account not only financial costs but also cost of alternatives forgone
The creation of new business helps to create competition in the market which is a positive thing as it helps to improve levels of efficiency and provides greater choice.
Ways in which the goverment support:
-lower business taxes
-reduced regulatory burden (paperwork)
-free business advice e.g Prince's trust
-legislation to encourage competition
-fear of failure
-time and effort
-loss of personal and social time