Business Enterprise

• What is the definition of business enterprise?

  The formation of a new business or service
• What are the reasons people want to set up their own business?

  • Personal ambition/satisfaction
  • Interest in the product/service
  • Keeping a family business running
  • Reward for own efforts
  • Exploiting opportunities/gaps in the market
  • Providing a service to the community
  • Using skills from previous jobs
  • Being own boss for flexibility
  • Lack of available jobs
  • Using qualifications
  • Encouragement from external agencies
  • Using redundancy pay
  • Ease of setup
• What is an entrepreneur?

  A person who sets up a business
• What financial risks does an entrepreneur take?

  They take on financial risks for profit
• What factors of production does an entrepreneur bring together?

  Land, labour, and capital
• What are the functions of an entrepreneur?

  • Set up and manage the business
  • Show initiative and innovation
  • Take risks and face uncertainties
  • Invest money into the business
  • Earn profits to fund lifestyle
• What qualities are important for an entrepreneur?

  Determined and organised
• What are the financial motives of entrepreneurs?

  Generate profit and provide employment
• What are non-financial motives for entrepreneurs?

  Self-satisfaction and being own boss
• What are the characteristics of social enterprises?

  • Prime objective is to do good in society
  • Surplus revenue supports specific causes
• What are the rewards of being an entrepreneur?

  • Be own boss
  • Flexible working hours
  • Pursue interests
  • Good customer feedback
  • Earn more money
  • Greater work-life balance
  • Self-esteem from building something
  • Provide employment for self and others
• What are the risks of being an entrepreneur?

  • Financial loss of income
  • Low sales and unexpected costs
  • Long hours and stress
  • Loss of security
  • Pressure on friends and family
  • Damage to reputation
• How do the rewards of entrepreneurship compare to the risks?

  Rewards include flexibility, while risks include financial loss