1.1.3 business enterprise

• What’s a business or enterprise?

  A person or organisation with the purpose of producing goods/services to meet the needs of customers
• What are suppliers?

  A business that sells (supplies) products to another business
• What's production?

  Using raw materials, labour and machinery to make products
• What's a customer?

  A person or organisation that buys the product or service
• What's a consumer?

  The person that uses the product
• What's the purpose of all products or services?

  To meet customers needs, in order to make a profit.

  To produce goods/services

  To add value
• What are goods?

  Tangible items that can be used or stored
• What are services?

  Intangible actions that cannot be stored, the business provides the service to the customer
• How can a business add value?

  convenience, branding, USP, design, quality,
• What are the benefits of adding value?

  competitive advantage, goes towards the company's fixed costs
• What's an entrepreneur?

  A person who runs and owns a business.
• What are skills of an entrepreneur?

  Risk-taking, showing initiative, willingness to undertake a new venture
• How do entrepreneurs create new products?

  Through invention and innovation
• What do entrepreneurs do?

  • Have an idea
  • Take a risk
  • Organise the resources to set up a business
  • Employ people
  • Make business decisions
  • Establish and grow a successful business
• How do entrepreneurs benefit the economy?

  • creating products/services to meet people's needs
  • creating jobs
  • generating economic activity through consumer spending
  • paying tax to the government
  • exporting goods abroad