1.1 Enterprise and Entrepreneurship

• Why do new business ideas come out?

  New technology e.g.: e-commerce, electric vehicles
• why do businesses have to change or adapt?

  Change in what the consumer wants.

  This could be because of a business competitors new product.
• Products become obsolete - meaning there is no use for a product or service anymore.
• How do new business Ideas come out?

  Original ideas - the developers create the idea from scratch

  Adapted ideas - developers have built upon theirs or another's existing product
• unlimited liability - when the owner of a business is personally responsible for all debts of the business.

  This is because they're the sole owner of the company and have the business assets under their personal belonging
• Lack of security - if an entrepreneur leaves his job there is a risk of failure which could be detrimental to his career.
• Business Enterprise - the activity of providing goods and services.
• 4 key factors for production -

  • Capital - the money used to start the business
  • Enterprise - the owners drive to start a successful business
  • Labour - the work put into the business
  • Land - the place where the product is produced (e.g. a warehouse)
• Adding value - The difference between the cost of production and the selling price.