Business

• Enterprise


  A project or business with the purpose of producing goods and services to meet the needs of customers
• Types of enterprise


  • Goods
  • Services
• Selling goods and services

  1. Suppliers

  2. Production

  3. Customers

  4. Consumers
• Resources required to produce goods and services

  • Land
  • Labour
  • Capital
  • Enterprise
• Added value


  Making a product or service more desirable to customers
• Ways to add value

  • Convenience
  • Branding
  • Quality
  • Unique design
  • Unique selling point
• Entrepreneur


  A person who owns and runs their own business
• Entrepreneurs


  • Have an idea
  • Take a risk
  • Organise resources
  • Make business decisions
  • Establish and grow a successful business
• Entrepreneurs create new products through invention and innovation
• Entrepreneurs benefit the economy by creating products and services to meet people's needs, creating jobs, and generating economic activity through consumer spending
• What are the three purposes of business activity?

  • Produce goods and services
  • Add values
  • Meet customer needs
• What is a good?

  A physical thing a business provides.
• What is a service?

  An action performed by another to aid the customer
• Three reasons why new business ideas come about

  • Changes in technology
  • Changes in what customers want
  • Products and services becoming obsolete
• Reasons how new business ideas come about:

  • Producing an original product
  • Adapting an existing product
• Why are entrepreneurs important?

  • They are responsible to take financial risks
  • Produce high quality products/services for customers
• Three skills of an entrepreneurs:

  • Organising resources
  • Making business decisions
  • Taking risks
• Risks of staring a business:

  • Financial loss
  • Lack of security
  • Business failure
• Three rewards of starting a business:

  • Business success
  • Profit
  • Independence