The process of identifying new business opportunities, and then taking advantage of them. It can involve starting up a new business, or helping an existing one to expand by coming up with new ideas.
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What is a good?
A physical item, such as a book or furniture.
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What is a service?
An action performed by other people to aid the customer, such as hairdressing or plumbing.
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What does it mean to meet customer needs?
Providing goods and services that people will want to buy.
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Why do customer needs often change?
So firms can change the products they sell to keep up.
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What does it mean to add value to an existing product?
When a business finds ways to improve a product, so customers are willing to pay more for it compared to competitors' products.
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What ways can a business add value to a product?
- Make a product more convenient for customers to get or use.
- Build a good brand image, so customers will be more willing to spend money on the product as they'll recognise the brand and know that it's trustworthy.
-Improve the design or quality.
- Give
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How do new business ideas come about?
- From changes in technology, e.g. the invention of tablets meant lots of people came up with ideas for apps that could be used on these devices.
- Changes in what customers want, e.g. a lot more people are concerned about the environment, so many busines
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New business ideas can be brand new or what?
Improvements of old ideas - adaptation of an existing product or idea (but the business will have found a way to improve it or make it more relevant to customers at the time).
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An entrepreneur is someone who does what?
Takes on risks of enterprise activity.
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To successfully run a new business, an entrepreneur must be able to what?
- Organise resources, so they can keep on top of all the day-to-day tasks of sunning the business as well as planning for the future.
- Take risks, the entrepreneur will probably give up their current job and invest money that they could lose if the busin
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What are risks when running a business?
1. To start a business, an entrepreneur needs money to buy equipment and pay workers. If the business makes a financial loss, it won't be able to pay back all the money that's been borrowed (and it may struggle to survive).
2. Entrepreneurs don't have muc
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What rewards are involved when running a business?
1. Seeing your business idea become a success.
2. If the business makes lots of profit, the entrepreneur could earn more money than they did before starting - gives them a better quality of life.
3. Gives the entrepreneur independence to choose what they
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