I am going to begin posting about Unit 1 (BUSS1): Planning and financing a business.
This is AS Business Studies, with AQA exam board.
Chapter 1 - Enterprise
Key Words:
Business-
An organisation that is set up to provide goods and services to customers in return for payment. Often, the main aim of the business will be profit.
Enterprise -
Almost any business or organisation can be called an enterprise, but the term usually refers to the process by which new businesses are formed and new products and services are created and brought to the market.
Enterprise Skills -
Skills that allow an individual or organisation to respond effectively to changing market situations. They include problem solving skills, thinking and acting innovatively and creatively, and understanding the importance of risk and uncertainty.
Entrepreneurs-
Individuals who have an idea that they develop by setting up a new business and encouraging it to grow. They take the risk and the subsequent profits that come with success, or the losses that come with failure.
Reasons for failure:
1. Lack of finance
2. Poor infrastructure
3. Skills Shortage
4. Complexity of regulations
What is 'Opportunity Cost'?
Definition: The next best alternative forgone, i.e. the next best thing that you could have chosen but did not.
IT IS THE DECISION THE ENTREPRENEUR DID NOT MAKE.
Example: The opportunity cost of setting up a business might be the wage from their old job that an entrepreneur gives up.
Why be an entrepreneur?
1. The Government encourages entrepreneurial skills and enterprise (We did this in school - enterprise day)
2. The country has seen an increase in wealth. This gives people more business opportunities and it also means there is less risk.
3. Things are changing quickly, this allows for constant new opportunities to be available.
4. People now want more independence at work - to be your own boss.
5. A drive to make money
6. A desire to make use of a skill/talent you possess in a useful and profitable way
7. An attempt to provide employment or wealth to the local area.
How do Governments support enterprise/entrepreneurs?
No comments:
Post a Comment