Please enable JavaScript.
Coggle requires JavaScript to display documents.
Enterprise - Coggle Diagram
Enterprise
Importance of entrepreneur to economy
tend to be single minded and prepared to work hard, passionate/ determined/ ambitious, have ability to organise production, are prerpared to take risks and are inovative
Many entrepreneurs are innovators. They bring new ideas to the market and drive the development of new technologies. Dyson an example of bringing new technoogies.
They are inovative and can provide better ways of doing things. which can lead to new businesses, thus increasing profits for businesses and their stakeholders
have vision and willingness to take risks which drive a business forward.
help economy by creating new jobs
boost economy by providing new products.
without entrepreneurs, our economy would not benefit from boost they give from added businesses and ideas and wealth creation
Increasing exports- helps balance of payments
Government benefit from taxation that is generated from busienss revenues
Importance of each sector
Tertiary: employs most people in UK. 80% of UK employment
Secondary: 18%
Primary: 2%
Similar contribution to gdp from each sector.
entrepreneurs believe manufacturing in secondary sector generates more wealth. But has decined in UK compared to foreign imports. cant compete with low asian manufacturing costs.
secondary sector need to remain competitive and ensure people actually want to buy product they are manufacturing
Secondary sector in uk needs to develop more tech so can export in the future and generate more wealth.
Teritary sector gown over last 20 years and become most important
Primary sector most important in rural areas for local economy.
Why people start a business
To gain a profit
to turn a hobby or past time into a business
To use redundancy money and provide themself with employment
To be their own boss
Sectors of industry
Primary: extractive, sources raw materials e.g. iron ore, hay
Secondary: manufacturing and construction industries make, build and assemble products e.g. factories.
Tertiary: services and sales. e.g. supermarket, buses
Employment
Primary sector: declined due to raw materials running out
Secondary: declining due to deindustrialisation, changes in demand, lack of uk competitiveness, lack of investment, technology, trade unions, relocation abroad, and less graduates.
Tertiary: Increasing due to new bueinsesses being created, growth in demand, education geared towards this sector and desire to work in pleasent environments.
Needs and wants
Needs: things people require to survive. e.g. food, water, shelter
Wants: Things people aim to have for a better quality of life. e.g. holidays, technology, luxuries
Entrepreneur
Someone who starts and runs a business. Perhaps they make a product and then sell that product, or prehaps they provide a service. they can employ people and try to make a profit.
Characteristics of an entrepreneur
risk taker
product knowledge
hard working
be passionate, determined, ambitious and have perseverence- new businesses have low success rates
Taking initiative and being proactive- adapting to change if required
Having creativity and innovation- being able to come up with concepts and ideas.
being an effective organiser- organises labour, raw materials ect.
Business oportunities
needs and wants are not fixed. They can chase quickly as lifestyles and fashion changes. also over the longer term as incomes increase and populations change. This means that markets are always changing. The business world does not stay still, new opportunities are constantly arising. An entrepeneuer with an idea, commitment, funds and a little luck can succeed in the most competitive markets.