1.1-entrepreneurship

• What is business enterprise primarily about?

  Starting something of your own
• What does the dynamic nature of business refer to?

  Changes in technology, fashion, and economy
• What significant event in 2016 forced companies to rethink their plans?

  The unexpected 'out' vote in the European referendum
• What are the three main questions to ask about start-ups?

  Why, Who, and How
• What is the main motive for starting a new business?

  Desire for satisfaction from achievement
• Why do many people want to be their own boss?

  Independent decision making
• What is a common type of business that new entrepreneurs might pursue?

  A franchise
• What qualities are important for a successful start-up?

  Determination, resilience, and enthusiasm
• What is a crucial component of a good business plan?

  A sensible sales forecast
• What does the dynamic nature of business imply about success?

  Success can never be taken for granted
• What can lead to a product or service becoming obsolete?

  Changes in consumer behavior and preferences
• What is demand in the context of consumer tastes?

  Ability to pay for desired products
• What happens to demand if a product's price is set too low?

  Customers may lose confidence and go elsewhere
• What is a key influence on the level of demand for a product?

  The price of the product or service
• What is the significance of the iPod's decline in sales?

  It shows the need for innovation
• What is the impact of new technology on business?

  Creates opportunities and increases obsolescence
• What are the reasons new business ideas come about?

  • Changes in consumer preferences
  • Products/services becoming obsolete
  • Changes in technology
• What is the role of entrepreneurs in identifying new opportunities?

  They see opportunities from changes in taste or technology
• What are the two main impacts of changes in technology?

  They create opportunities and increase obsolescence
• What is the key for new small firms in technology?

  To stay updated and take risks
• What drives entrepreneurs to start new businesses?

  New opportunities from customer taste or technology
• What factors affect the chances of success for start-ups?

  Originality, competition, and customer loyalty
• What is demand in business terms?

  • The number of units customers want
  • The number of units customers can afford
• Who are entrepreneurs?

  • Business people who see opportunities
  • Willing to take risks to make them happen
• What does it mean for a product to be obsolete?

  • Sales have declined or ended
  • Customers find something new
• How does creative thinking begin?

  By asking questions, especially 'why'
• Why is asking 'why not?' important?

  It helps explore possibilities for change
• What is the relationship between creativity and communication?

  Creativity needs effective communication to matter
• What are the benefits of adapting existing products?

  • Requires less research and development
  • Cheaper option with high profit margins
  • Protects main product from competition
• What factors influence a company's ability to generate new ideas?

  Staff engagement, cash for R&D, and diversity
• What is risk in a business context?

  • The chance of a particular outcome occurring
  • Associated with new product launches
• What is the success rate of new products in large firms?

  One in five is a success
• What must firms do to manage product launches?

  Profit from existing products to fund new ones
• What are the main risks at different business stages?

  • Identifying a profitable market gap
  • Ensuring customer retention
  • Managing rapid growth and finances
• What percentage of UK business start-ups fail within five years?

  Half
• What do entrepreneurs risk when starting a business?

  Giving up salary and security
• What happens to owners of limited companies in financial trouble?

  They are protected from personal losses
• What is the liability of sole traders and partnerships?

  They have unlimited liability for debts
• What are the potential consequences of business failure?

  • Loss of family savings
  • Strain on family relationships
  • Possible divorce
• What protects the owner from business losses?

  Limited liability