1.1

• Dynamic nature of business


  Why new business ideas come about and how new business ideas come about
• Reasons new ideas come about


  • Changes in technology
  • Changes in consumer wants
  • Products becoming obsolete
• Invention


  Creating a new idea
• Innovation


  Adapting and improving an existing idea
• How new ideas come about


  1. Brainstorming

  2. Observation

  3. Market research
• Risk and reward


  The different risks and potential rewards when starting a business
• Risks of starting a business


  • Business failure
  • Financial loss
  • Lack of security
• Rewards of starting a business


  • Business success
  • Financial gain
  • Independence and control
• Purpose of business activity


  • Providing goods and services
  • Meeting customer needs
  • Adding value
• Entrepreneur


  Someone who demonstrates enterprise by taking risks and showing initiative to turn a risk into a viable business idea
• What entrepreneurs do


  • Make decisions
  • Take risks
  • Organise resources (physical and human)