theme 1

• entrepreneurs - is a person who owns and runs their own business and takes risks
• enterprise - a willingness by an individual or a business to take risks show initiative and undertake new ventures
• customers - someone who purchases the product
• consumer - someone who uses the product
• why do new business ideas come about

  • advances in technology
  • changes in what consumers want
  • products and services becoming obsolete
• changes in technology

  • E-commerce - using the internet to carry out business transaction
  • M-commerce - using mobile technologies such as smartphones and tablets to carry out business transactions
• changes in what consumer want

  • over time trends change
  • new products will become popular
• products and services becoming obsolete

  • most products have a limited lifespan and at some point will no longer be sold. this could be due to ( technology advancements and changes in taste and fashion )
• how do new business ideas come about

  • adapting an existing product or service to keep up with changes in consumer trends
  • creating a completely original product or service to satisfy a new or previously unknown consumer trend
• adapting an existing product or service

  • adaptation is the prosses of of modifying an existing product or service so that it is suitable for different customers or markets
  • this can also be known as innovation
  • this can be seen as a less risky business option than launching a new product
• original ideas

  • it can be very challenging for an entrepreneur or business to come up with completely original business ideas
  • this is also know as invention
• risk - is the possibility of a business venture failing
• how do entrepreneurs minimise risk

  • risks can be minimised by making decisions based on evidence such as market research and revenue forecasts
• risks of starting a business

  • business failure
  • financial loss
  • lack of security
• business failure

  • one major cause of business failure are cashflow issues
  • cashflow - the amount of money coming in and going out of the business
• financial loss

  • there is a risk of losing money when starting a business
  • an entrepreneur could lose the money that they have put into the business
• lack of security

  • you may not receive a regular wage, sick pay or a pension that is run by your employer
• motivations to start a business

  • business success
  • profit
  • independence
• business success

  • many entrepreneurs are motivated by the satisfaction of building something from nothing
  • some like to be able to provide jobs for the local community
  • others like to be able to provide a product or service that their customers love
• profit

  • many entrepreneurs choose to start their own business to make as much money as possible
• independence

  • many entrepreneurs are motivated by being able to work for themselves rather than for someone else
  • freedom
• goods - are physical products that you can touch
• services - are thins that people do such as a haircut
• meeting customer needs

  • customer needs, are the wants and desires of customers of a business
  • it6 is essential that businesses understand their customers needs in order to provide good quality products or services
• primary research

  • gathering information that has not been collected before ( surveys, focus groups and observation )
• secondary research

  gathering info that already exists ( internet, newspapers and market reports
• adding value

  • the increased worth that a business creates for a product or service
  • the difference a business pays its suppliers and the price it charges for its products and services
• methods for adding value

  • branding
  • convenience
  • quality and design
  • unique selling points
• branding

  • branding is used by a business to create a clear image that customers can recognise
  • a brand is a distinguishing mark that companies use to distinguish their product from others
  • legal protection given to a brand is called a trademark
• convenience

  • making products easier to access or use
  • these products/services make our lives easier
• quality

  • some businesses add value to their products by making them a higher quality or better than their competitors
  • some brands can build a reputation for higher quality goods, this helps add value
• USP

  • is something that differentiates a businesses product from others
  • price- being the cheapest product of that kind
  • quality- being the best quality product of that kind
  • first to the market- the first product of its kind to incorporate a new feature
• one role of an entrepreneur is to organize the resources that the business needs to run

  • finance
  • premises
  • equipment
  • staff
• making business decisions

  • the entrepreneur will be responsible for all business decisions
  • this is a big responsibility because the success of the business is dependent on these decisions
  • they need to have long term visions for the business
• taking risks

  • risks cannot be avoided so an entrepreneur has to be capable of taking risks
  • they can manage the amount of risks they take by having good knowledge of the market and doing research
• showing leadership

  • their attitudes will affect their employees and potential customers
  • this will be based on good decision making and the ability to see things through
• customer needs

  • price
  • quality
  • choice
  • convenience
• price

  • customers will often search for the best deal available
• quality 


  customers will carefully consider the quality of the product or service that they are buying
• choice

  • when buying a product customers like to have choice as they have different tastes and needs
  • the internet allows people to have more choice than before