Business U1 AOS 1

• 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
• Pursuing business opportunities

  • Gaps in the market
  • Changing customer needs
  • Change in global markets
  • Technological innovations
• Innovation

  Creating a new product or significantly improving an existing one
• Seeking growth

  Entrepreneurs seek growth in order to increase sales, market share and profit
• Business opportunities

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

  Circumstances due to changing market conditions that potential business owners can use as potential business ideas (gaps in the market, products not available in certain locations, providing a good or service in a better manner)
• Market

  A place where buyers and sellers interact to trade goods and services
• Changing customer needs

  • Incomes
  • Tastes and fashions
  • Prices of complementary and substitute goods and services
  • Expectations about the market
  • Population
  • Numbers of potential customers
• Technological developments

  Applications of knowledge that have changed people's lives and the way that businesses operate
• Research and development

  A set of activities undertaken to improve production processes, improve existing products and create new products
• Global markets

  When goods and services are exchanged between businesses and customers across the world
• Personal motivations behind starting a business

  • Desire for independence - being able to choose when and where they work, who they work with
  • To fulfil a market need - selling a unique product they believe is needed in the community
  • To fulfil a social need - supporting a community or environmental cause
  • To make a profit - they can make more than employees
• Goal

  What a business expects to achieve over a set period of time/at a given time
• Vision statement

  Describes where a business wants to be in the future
• Mission statement

  Describes what a business does and how it will achieve the vision
• SMART GOALS

  • Specific - clear and focused
  • Measurable - quantifiable
  • Achievable - challenging but realistic
  • Relevant - goals should address the vision statement
  • Time bound - goals must have a deadline or time limit
• Financial goals

  • Increase profit
  • Increase market share
  • Increase sales
  • Expand the business
  • Maximise return on investment
• Social goals

  • Community service
  • Provision of employment
  • Social justice
  • Ecological sustainability
• Personal goals

  • Can complement other goals
• Characteristics of Entrepreneurs

  • Willing to seize opportunities
  • Prepared to take significant risks
  • Able to communicate a shared vision
  • Innovative
  • Enterprising (having initiative and being resourceful)
• Characteristics of Managers

  • Take only small, calculated risks
  • Are good leaders
  • Can follow through long term projects
  • Have good organisational and admin skills
• Business concept

  Describes core activities, target market, and specific features and values of goods or services
• Business concept development

  Coming up with a business idea after evaluating potential business opportunities
• Intellectual property

  • Patent
  • Trademark
  • Copyright
  • Design rights
  • Domain name
• Patent

  Right granted for a new device, substance, method or process
• Trademark

  Right granted over a letter, word, number, phrase, etc.
• Copyright

  Free and automatic protection of new writing, film, art, music, broadcasts, computer programs
• Design rights

  Rights to commercially use, licence or sell a design
• Domain name

  A businesses unique address on the internet
• Market research

  Systematically collecting, recording and analysing information related to a specific market
• Feasibility study

  An analysis of the viability of a business idea
• Economy

  A system which determines what to produce, how to produce it, and to whom production will be distributed
• Economic contributions

  • Employment
  • Research and development
  • Taxation revenue
  • Boosting economic growth
  • Boosting export earnings
• Wellbeing contributions

  • CSR
  • Social wellbeing
  • Supporting career development
  • Innovation
• Federal government investment in research and development including through

  • Direct funding and assistance
  • Grants
  • Tax incentives
• State government support including

  • Small business centres victoria providing support 
• Local council investment in new businesses including

  • Direct funding and assistance
  • Grants
  • Business mentorship programs
• School based educational programs

  • VCE Business Management
  • $20 NAB boss program