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Topic 1.1 Enterprise and entrepreneurship (Changing technology…
Topic 1.1 Enterprise and entrepreneurship
The dynamic nature of business
Dynamic markets
New opportunities
New businesses
Changing technology
New technology --> new business opportunities
Improvements
Faster products and services
Smaller (compact) products
Cheaper products and services
Easy to use products
Safer products
Create more desirable products
Changing consumer needs
Constantly changing society --> Changing consumer wants and needs --> new business opportunities
Changing environments
Fashion
Economy
National demographics
Lifestyle
Technology
Obsolescence
RISK AND REWARD
CALCULATING RISKS
Considering probability of a negative outcome and the impact of the negative outcome
Starting a business will involve risk because there are many unknown factors that affect long-term business success
Rewards
Business success
Personal Satisfaction
Excellent products/services
Growth
Awards and recognition
Profit
Independence
Risks
Business failure
Poor cash flow
Fall in sales revenure
High level of competition
Financial loss
Lack of security
RISK REDUCTION
Carry our detailed market research
Produce a business plan
Ensure that the business is competitive
Raise sufficient start-up finance
Consider the level of risk
Seasonal demand
Small market
Highly competitive market
Little knowledge of product or market
THE ROLE OF BUSINESS ENTERPRISE
A business or enterprise is a person or organisation with the purpose of producing goods or services to meet the needs of customers
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ADDING VALUE
Lower variable costs
Higher selling price
Methods of adding value
Convenience
Better design
Improved quality
Unique selling point
Branding
Greater speed of service
THE IMPORTANCE OF ADDED VALUE
BENEFITS
THE ROLE OF ENTREPRENEURSHIP
An entrepreneur is a person who owns and runs their own business
ROLE OF ENTREPRENEURS
idea --> risk --> organisation of resources for start-up --> employment --> business decisions --> establish and grow successful business
Enterprise skills
Risk-taking
Initiative
Willingness to undertake a new venture
ENTREPRENEURS INNOVATION
Create new products through invention and innovation
Research and development --> pore