AOS1

• Reasons why people start up a business

  • Personal independence
  • Financial independence
  • Profit motive
  • Fulfil a market need
  • Fulfil a social need
• Entrepreneurship

  The act of starting and operating a new business in response to business opportunities, assuming all the risk in the hope of making a profit
• Entrepreneur

  An individual who takes on the risks associated with starting a business in the hope of making a profit
• Characteristics of an entrepreneur

  • Willing to take calculated risks
  • Strong networking ability
  • Determined
  • Innovative
  • Resourceful
  • Knowledgeable
• Business manager

  A person who has responsibility for overseeing the operations of the business to ensure that it successfully achieves its goals
• Characteristics of a business manager

  • Communication skills
  • Determined
  • Knowledgeable
  • Ethical
  • Flexible
• Skill

  The capacity of an individual to proficiently perform tasks essential for effective business operation and management
• Business opportunity

  A set of circumstances that presents itself as an avenue to success
• Business opportunities

  • Innovation
  • Market opportunities
  • Changing customer needs
  • Research and development
  • Technological development
  • Global markets
• SMART Goals

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time bound
• Financial goals

  • Making a profit
  • Increase sales
  • Increase market share
  • Expand the business
  • Maximise ROI
  • Improve the way a business operates
• Social Goals

  • Community service
  • Provision of employment
  • Social justice
  • Ecological sustainability
• Mid- to short-term goals that are specific and measurable are often referred to as objectives
• A mission statement describes what a business does and how it will achieve its vision
• Decision-making


  The action or process of making important decisions
• Decision-making process

  1. Develop goals

  2. Outline the facts

  3. Identify alternative solutions

  4. Analyse these alternatives

  5. Choose one alternative and implement it
• Decision-making is important for making important decisions for the success of the business, e.g., choosing the right business partners, making important decisions for the future of the business
• Business

  Any activity conducted by an individual or individuals to produce and sell goods and services that satisfy the needs of society, as well as making profit
• What businesses do

  • Meet customer demands
  • Contribute to the economy
  • Create opportunity
  • Produce and distribute goods and services
• Business concept development

  1. Develop initial idea

  2. Identify goods and services that will be sold

  3. Potential for market research
• Intellectual property

  An original creation of the mind that can be legally owned
• Types of intellectual property

  • Trademark
  • Patent
  • Copyright
  • Domain name
  • Design rights
• Relationship between business opportunity & business concept development

  • Initial business ideas and concepts are often developed after identifying a business opportunity in the market
  • After recognising a business opportunity, business owners can then decide on the exact goods or services they want to sell to gain a competitive advantage
• Problem solving

  1. Define the problem

  2. Determine the cause of the problem

  3. Identify, prioritise and select possible/alternative solutions

  4. Implement a solution
• Production cycle

  The process by which raw materials are transformed into finished goods or services, involving stages such as acquisition, production, and distribution, ultimately aimed at meeting customer demand and generating revenue for the business
• Market

  The environment in which buyers and sellers interact to exchange goods, services or resources
• Market research

  Collecting, recording and analysing information concerning a specific market
• Factors that affect customer demand

  • Price
  • Consumer preferences
  • Competition
  • Sales patterns in different times of the year
• Economy

  A system set up to determine what to produce, how to produce and to whom production will be distributed
• 3 basic economic questions a business must tackle

  • What goods and services are produced?
  • How do we produce those goods and services?
  • Who will receive the goods and services produced?
• businesses contribute to the social wellbeing of a nation by supporting career development and social wellbeing, innovation and corporate social responsibility
• Businesses contribute to the economic wellbeing of a nation by providing employment, contributing to taxation revenue and boosting economic growth and export earnings. They also contribute to research and development
• What is trademark?

  legal protection for a business over the rights of its name, symbols, colours, packaging, or additional tools used to sell its products
• patent

  provides businesses with exclusive rights to the use of innovative ideas, methods or processes
• what is copyright?

  free and automatic protection used on original ideas such as writing, art, sound, films and photographs
• what is domain name?


  unique website address
• what is design rights?

  rights given to the owner to commercially use, licence or sell a design (visual appearance of a product)
• what is problem solving?

  the process of finding solutions to difficult or complex issue
• market need


  the goods or services that customers require that are not readily available
• social need

  the production and/or selling of goods and services for the purpose of bettering the world/community