A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards
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What is creative destruction?
The way in which quality-improving innovations lead to economic growth. Customers switch to new products, replacing the old ones.
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What decisions do entrepreneurs make when starting up a business?
How to set up their production process, what premises to rent, who to hire, what equipment and technology to use and how to price their products
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Why are entrepreneurs crucial in the economy?
They create jobs, can have innovative products, create dynamic markets and thus raise the standards of living
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Why must entrepreneurs be good at adding value?
Because their future depends on their offering value for money; they have to work out how they will create and add value to the product so they can sell it at a profit
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What is added value?
It represents the difference between the cost of material inputs and the eventual value of the product in terms of the price that can be charged for it
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Who uses a business plan?
Internally by the entrepreneur and externally by banks or those willing to provide grants
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What does a business plan include?
The executive summary, the products or service, the market, the marketing strategy, the skills of the entrepreneur, operations and financial forecasts
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Other cards in this set
Card 2
Front
What is creative destruction?
Back
The way in which quality-improving innovations lead to economic growth. Customers switch to new products, replacing the old ones.
Card 3
Front
What decisions do entrepreneurs make when starting up a business?
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