The Dynamic Nature of Business

Lesson 1

Why do new Business Ideas Come About? 

Technology: Changes in technology lead to new business ideas that were previously thought impossible e.g. VR headsets 

Changes in Customer Wants: As customer wants change so must the products e.g. cordless vacuums 

Products Becoming Obsolete: Technical advances and trends lead to products becoming obsolete and new products being designed to replace them e.g. typewriters and laptops 

How do New Business Ideas Come About? 

Adapting existing products or services: changing a product or service so that it better suits customer needs  

New business idea: an original idea that is new and different to most products on the market. These products are made to fill a gap in the market.

Lesson 2

Risk and Reward 

Risks: 

Business Failure- many businesses fail within the first year, many customers may not want to buy new products 

Financial Loss- Investing in a business is very costly and business failure would result in huge financial loss for the entrepreneur 

Lack of Security- Entrepreneur loses security that came with a stable job, wages, and hours. If the business is not profitable the entrepreneur will have no money to live off 

Rewards: 

Financial Gain- if the…