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Enterprise - Coggle Diagram
Enterprise
Impact Of Enterprise On A Country's Economy
Employment creation
Economic growth
Firms' survival & growth
Innovation & technological change
Exports
Personal development
Increased social cohesion
Characters Of Successful Entrepreneurs
Innovation
Commitment & Self-motivation
Multiskilled
Leadership Skills
Self-confidence & an ability to bounce back
Risk taking
Social Enterprise
They directly produce goods/ services
They have social aims & use ethical ways of achieving them
They need to make a surplus/ profit to survive as they can't rely on donations as charities do
Economic objective
Social objective
Environmental objective
The Role Of The Entrepreneur
Someone who takes the financial risk of starting & managing a new venture
Has an idea for a new business
Invested some of their own savings & capital
Accepted the responsibility of managing the business
Accepted the possible risks of failure
What Businesses Need To Produce Goods & Services
Land
Labour
Capital
Includes capital goods (physical goods used by industry to aid in production) such as computers
Enterprise
Major Challenges Faced By Entrepreneurs
Identifying successful business opportunities
Sourcing capital (finance)
Competition
Building a customer base
Why Do New Businesses Often Fail
Lack of record keeping
Lack of cash & working capital
Poor management skills
Changes in the business environment
What Businesses Do
Identify customer & other firms' needs.
Purchase resources for products' production with aim to make profit
Business activity exists to produce consumer goods/ services that satisfies customer needs
Consumer goods are physical & tangible goods sold to the general public
Consumer services are non-tangible products sold to the general public
Common Types Of Entrepreneurial Business
Primary sector
Secondary sector
Tertiary/ service sector
The Concept Of Creating/ Adding Value
Creating value is when the products' price is higher than manufacturing price
Added value is the difference between the price of the product with its manufacturing price
Opportunity Cost
The benefit of the next most desired option when given up