enterprise

• what is the definition of an enterprise?

  Business enterprise refers to a person spotting a business opportunity and setting up a business. 
• what is the definition of an sme

   A small to medium sized enterprise employs  less than 250 people and a turnover of less than 50 million euros .
• what are the three sectors of an industry

  Primary: extractive – produces raw materials, e.g. iron ore (that goes into making steel) and oil (that makes petrol, plastics, etc.), as well as producing final products like fish and oranges.

   Secondary: manufacturing and construction industries make, build and assemble products.

   Tertiary: services give value to people but are not physical goods. Services are sometimes classified as direct services (to people), e.g. the police, hairdressing, etc. and commercial services (to business), e.g. business insurance, financial services, etc.
• why do individuals start a business (ao1)

  • to gain a profit

  • to turn a hobby or pastime into a business

  • to use redundancy money and provide themselves with employment

   • to be their own boss.
• why do individuals start their own business (A02)

  financial reward-opportunity to earn more when owning a business

  prefer to make their own decisions - in control

  greater job satisfaction - attain set goals / pick when the want to work

  passion/interest in what they make - higher quality or creating a new process

  to create employment- being redundunt / making work for other
• what are needs

  -Needs are essential items or services required for survival or basic functioning.

  Needs are universal (e.g., food, water, shelter)

  • Needs are typically inelastic in demand
• what are wants

  • Wants are desires for goods or services that are not necessary but would improve quality of life ,they are unlimited
  • Wants vary by individual (e.g., designer clothes, latest smartphone
  • Wants are usually more elastic and influenced by factors like trends or marketing
• what is the definition of an entrepreneur

  Entrepreneurs are individuals who identify sets up ands runs a business and take risks to create new ventures. Their key roles include:

  1. Innovation: Developing new products, services, or processes
  2. Risk-taking: Investing time and resources with uncertain outcomes
  3. Opportunity recognition: Identifying gaps in the market
  4. Resource management: Efficiently using available resources
  5. Value creation: Generating economic and social value

   
• what are the characteristics of an entrepreneur?

  -being a risk taker

   – they risk capital

  -product knowledge

  -be hard working

  -be passionate

  -determined/ambitious and have perseverance – new businesses have low success rates

  -taking the initiative and being proactive –

  -adapting to change if required  having creativity and innovation – being able to come up with concepts and ideas

  -being an effective organiser – organises labour, raw materials, etc.
• what are financial motives

  Financial motives are the monetary reasons that drive entrepreneurs to start and run businesses.

  1. Profit maximization: The desire to earn as much money as possible from the business.
  2. Financial independence: The goal of being self-sufficient and not relying on others for income.
  3. Wealth creation: Building personal assets and net worth over time.
  4. Return on investment: Seeking a good financial return on the time and money invested in the business.

   
• what are non financial motives?

  Non- Financial motives are reasons for starting and running a business that go beyond monetary gain. These include:

  1. Ethical stance : To behave in a manner deemed to be morally correct
  2. Social entrepreneurship : Motivated by supporting a cause rather than making a profit
  3. Independence : Be own boss and make own decisions
  4. Homeworking : Work-life balance
  5. Job satisfaction: Building a business can be very enjoyable
• what are the impact of sme's on businesses

  SME's make up 99.9% of UK business population and therefore are really importance .

  Impact on businesses:

  • Create competition
  • Supply goods and services
  • Offer specialisms and expertise
  • Buy goods and services

   
• what are the impacts of sme's for the economy

  Impact on economy:

  • Provide employment
  • Pay taxes
  • Social benefits
  • Increases benefits
  • Increases competitiveness
  • Attracts foreign trade
• what are stakeholders

  Stakeholders are individuals, groups, or organizations that have an interest in or are affected by a business's actions, objectives, and policies. They can influence or be influenced by the company's operations and decisions.

  Key points:

  • Stakeholders have a vested interest in the company
  • They can affect or be affected by the business
  • Stakeholders can be individuals or groups
• what are internal stakeholders

  Internal stakeholders are those who are part of the organization and have a direct influence on its operations and decision-making. Examples include:

  • Employees: Workers at all levels, from management to front-line staff
  • Owners/Shareholders: Those who have an equity stake in the business
  • Board of Directors: Responsible for governing and overseeing the company

  Internal stakeholders are directly involved in the day-to-day activities and long-term strategy of the business.
• what are external stakeholders

  External stakeholders are those who are outside the organization but are affected by or can affect the company's actions and performance. Examples include:

  • Customers: Individuals or organizations that purchase the company's goods or services
  • Suppliers: Businesses that provide raw materials, components, or services to the company
  • Government: Regulatory bodies, policymakers, and tax authorities
  • Local community: Residents and organizations in the areas where the company operates
  • Pressure groups: Organizations concerned with the company's environmental impact

   
• what do employee stakeholders look for

  Employees look for :

  • High pay 
  • Job security 
  • Good working conditions 
  • Fair treatment 
  • Fringe benefits 
  • Health and safety 
  • Promotion prospects 
  • Training opportunities
• what do customers stakeholders look for

  Customers look for :

  • Low prices 
  • Value for money 
  • High quality products 
  • Good service 
  • Innovation 
  • Certain and regular supply 
  • Choice of goods i.e. variety 
  • Clear and accurate Information
• what do supplier stakeholders look for

  Suppliers look for :

  • A long-term relationship with the firm 
  • Large size and high value of contracts 
  • Frequent and regular orders 
  • Prompt payment 
  • Fair prices 
  • Growth of the firm leading to more orders
• what do government stakeholders look for

  Government look for :

  • Compliance with laws and regulations 
  • Efficient use of resources 
  • Employment 
  • Contribution to the national economy 
  • Payment of taxes 
• what do community stakeholders look for

  The community look for :

  • Employment prospects 
  • Safeguarding the environment 
  • Acceptance of social responsibility 
  • Ethical behaviour
• what do competition stakeholders look for

  Competition look for :

  • Sales offers
  • Income/Turnover
  • Product variety
  • Opening of new stores
  • Opening hours
  • Wages rates
• what do pressure group stakeholders look for

  Pressure groups look for:

  • These organisations will fight for the rights of their members and put pressure on the business to behave in a certain manner.
• Why is the tertiary sector so important ?

  In terms of employment the tertiary sector is by far the most important in the UK employing approximately

  80% of those who are in employment. The secondary sector accounts for 18% with 2% in the primary sector.

  A similar picture emerges if we look at the contribution each sector makes to the value of our output (GDP).
• why is it argued the secondary sector is more important then tertiary

  Many entrepreneurs believe that that manufacturing in the secondary sector creates wealth when compared

  to the service sector. However, the secondary sector in the UK and the manufacturing sector in particular have

  rapidly declined due in part to competition from cheap foreign imports from developing countries. Cannot

  compete with low labour costs in China and India.
• what is a key issue of the secondary sector ?

  The key issue for the secondary sector is that of ensuring they can turn raw materials, or semi-finished

  components, into something that consumers will pay for. The problem is about maintaining competitiveness

  by adopting suitable strategies and investing in high tech industry (computers, telecommunications,

  aerospace) where there is a significant emphasis on research and development.
• Why has there been a decline in primary employment sectors?

  Raw materials have run out and relocated
• What is one reason for the decline in secondary employment?

  De-industrialisation of industries
• Which industries have seen a decline due to de-industrialisation?

  Shipbuilding, steel, textiles, car manufacturing
• What has changed in consumer demand affecting secondary employment?

  Preference for foreign goods over local products
• Which countries are noted for producing better quality products?

  Japan and Korea
• What is a factor contributing to the lack of competitiveness of UK manufacturing firms?

  Increasing overseas competition
• What has contributed to the lack of investment in UK manufacturing?

  Both government and industry lack investment
• How has technology impacted employment in manufacturing?

  Technology has replaced workers
• What issues can trade unions cause in the context of employment sectors?

  Trade union problems can lead to lost markets
• Why are UK manufacturers relocating abroad?

  To take advantage of lower costs
• What is a consequence of the education system regarding manufacturing jobs?

  It does not produce enough engineering graduates
• How has the perception of manufacturing jobs changed?

  Manufacturing has become 'unfashionable'
• What has led to an increase in tertiary employment?

  Creation of new business sectors like fitness centres
• What has driven the growth in demand for services during this period?

  Greater affluence among the population