Enterprise + Entrepreneurship

• The Dynamic Nature of Business

  Businesses constantly evolve due to:

  • New technology – Advances create opportunities for new products (e.g., smartphones, digital cameras).
  • Changing consumer wants – Trends in fashion, fitness, and healthy eating influence demand.
  • Products becoming obsolete – Innovation makes older products outdated.
• Sources of New Business Ideas

  • Original ideas – Entrepreneurs generate creative concepts, but only some succeed.
  • Adapting existing products – Improving current goods and services for better market fit.
  • Business experience – Prior industry knowledge provides insight into customer needs, competitors, and pricing, reducing risks.
• Risk and Reward in Business

  • Risks – Financial loss, failure, and market unpredictability.
  • Rewards – Profit, business growth, and personal satisfaction.
• Role of Business Enterprise

  • Providing goods and services – Fulfilling customer needs.
  • Adding value – Improving products to increase appeal and profitability
• What Makes a Good Business Idea?

  Good business ideas typically:

  • Solve a problem
  • Offer cheaper or better alternatives to existing products
  • Are simple and practical
  • Can be quickly developed and launched
  • Focus on meeting customer needs
  • Anticipate market trends and growth opportunities
• Risks:

  • Business failure – Loss of investment and potential personal liability for debts (especially for sole traders/partnerships).
  • Financial struggles – Difficulty covering costs, paying wages, or sustaining operations without external funding.
  • Reputation damage – Failure may hinder future business ventures or job prospects.
• Why Businesses Fail:

  • Poor management – Bad planning, decision-making, and market understanding.
  • Inadequate market research – Unreliable or outdated data leads to wrong assumptions.
  • Overestimated sales – Unrealistic expectations about customer demand.
  • High start-up costs – Underestimating or missing expenses.
  • Unexpected shocks – Economic changes, natural disasters, new competitors, political events like Brexit.
  • Overreliance on few customers – Risk increases if dependent on a limited customer base.
  • Poor quality products/services – Drives customers to competitors.
• Reducing Business Risk

  • Planning – Create realistic business plans.
  • Research – Use up-to-date, specific market research.
  • Caution – Avoid rapid growth.
  • Careful financing – Favor shares or retained profits over debt.
  • Cost management – Keep expenses like premises and staffing in check.
  • Legal protection – Use limited liability structures.
  • Regular monitoring – Review finances and business goals regularly.
• Rewards

  • Personal satisfaction from building a successful business.
  • Independence and control over decision-making.
  • Achievements like the first sale, expanding locations, or hiring staff.
  • Recognition through awards or positive publicity.
  • Customer satisfaction and positive feedback.
  • Fulfilling social objectives by helping others or meeting societal needs.
• Purposes of Enterprise

  • Producing Goods and Services
  • Organizing resources efficiently to create products/services that reach customers and generate profit.
  • Meeting Customer Needs
  • Selling products that fulfill specific customer demands. Producing without demand leads to unsold stock.
  • Adding Value
  • Selling products at a price higher than production costs.
• Adding Value :

  • Convenience – Charging more for easier access (e.g., home services).
  • Branding – Establishing a trusted, high-quality brand allows for higher prices.
  • Design – Attractive, functional, and cost-effective designs increase value.
  • Quality – Higher product quality meets or exceeds customer expectations.
  • Unique Selling Point (USP) – Differentiating features allow for premium pricing.
• What is an Entrepreneur?

  An entrepreneur is someone who takes a calculated risk to start and run a business. They are enterprising individuals who:

  • Take initiative and organize resources to exploit business opportunities.
  • Assess and calculate risks before making investments, often using their own money.
  • Make critical business decisions and proceed despite potential failure.
• Reasons for Starting a Business

  • Financial Objectives
  • Profit-making: Earning more revenue than costs or selling the business for a large sum.
  • Non-Financial Objectives
  • Investment: Using savings or inheritance to generate future returns.
  • Work-life balance: Flexibility in work hours and location, often working from home.
  • Pursuing skills/interests: Turning passions into business opportunities.
  • Independence: Being their own boss and escaping unfulfilling jobs.
• What Makes a Good Entrepreneur?

  • Innovative: Full of creative ideas and passionate about their product/service.
  • Risk-takers: Willing to take calculated risks for potential rewards.
  • Hard-working: Committed to long hours, especially in the early stages.
  • Organised: Efficiently manage time and resources.
  • Determined: Overcome challenges and persist through difficulties.
  • Persuasive: Convince suppliers, employees, and customers to support their business.
  • Leadership: Lead and manage various roles within their business.