1.1 Enterprise and Entrepreneurship

• Reasons why new business ideas come about?

  Changes in technology, changes in what customers need or want and products/services becoming obsolete
• Two ways in which new business ideas come about?

  Brand new ideas and adapting an existing product/service
• What is a risk?


  A negative that could happen when starting a business
• What is a reward?


  A positive that could happen when starting a business
• Three risks that can impact a business?


  Financial loss, business failure and job security
• Three rewards that can impact a business?


  Financial success, business success and freedom
• What is enterprise?


  Someone who thinks of a business idea
• What is an entrepreneur?


  Someone who starts a business
• What is adding value?


  Changing a product to increase its value
• Three roles of a business?


  Add value, providing customer needs and providing goods and services
• Three ways a business can add value?


  More choice, more convenience and better quality
• Three roles of an entrepreneur?


  Take risks, organise resources and make business decisions
• What is a good?


  A physical product you can buy or sell
• What is a service?


  An action performed by a business
• What is unique selling point?


  Something that makes your product different
• What is meant by obsolete?


  Something that is no longer needed