- Created by: mary9
- Created on: 08-02-15 13:00
Enterprise involves identifying new business opportunities, and then taking advantage of them. There's always a risk of failure, but the reward for a successful enterprise activity is profit.
Enterprise can involve starting up a new businessm or helping an exisiting one to expand by coming up with new ideas.
A good business idea is usually a product/service that no other business is already providing but which customers will be willing to pay for - A gap in the market.
A market niche (or niche market) is a similar idea. A market niche is a small part of the overall market, and is made up of customers with a particular need. Big companies often don't bother trying to make a niche product, so it's great for smaller companies
Enterprise means taking risks
enterprises always involve balancing risks against possible rewards.
1). An entrepreneur needs to gather together all the resoruces needed to start or expand a business They key resource is money. which is needed to buy equipment and pay workers.
2). Very often an entrepreneur will use their own money. but they'll probably need to raise more form banks or other investors as well.
3). An entrepreneur will hope that the business will make enough profit to pay back any money that's been borrowed. If not then the business will fail and the entrepreneur will lose all the money that's been invested in the company.
4). A good entrepreneur will take a calculated risk - they'll do research. Plan the business carefull to make sure it has a good chance of sucess or even survival, and weigh up concequences of failure. if the risk is worth tsking the entrepreneur will go straight ahead with the new business venture.
Entrepreneurs need particular qualities, a successful entrepreneur is likely to have most of the following qualities...
- Ability to think ahead - to identify opportunites for the future
- initiative - to seek out or seize business opportunities
- drive and determination - to turn ideas into practise
- decisiveness - so they dont shy away from making tough decisions
- networking skills - to identify poeple who can provide money or other resources