Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Enterprise
|
The process by which new businesses are formed in order to offer products and services in a market
|
|
|
Enterprise skills
|
Skills that allow an individual/organisation to respond effectively to changing market situations, including problem solving skills, thinking and acting creatively, and understanding the importance of risk and uncertainty.
|
|
|
Entrepreneur
|
An individual who sets up and runs a new business and takes risks associated with that new business.
|
|
|
Opportunity cost
|
The 'real cost' of taking a particular action or the next best alternative forgone; i.e. the next best thing you could have chosen but didn't.
|
|
|
Seven characteristics of successful entrepreneurs
|
1. Determination and persistence
2. Passion 3. Ability to spot and take advantage of opportunities 4. Vision, creativity and innovation 5. Motivation to succeed 6. Willingness to take risks 7. Relevant skills and expertise |
|
|
A good entrepreneur...
|
-Takes calculated risks
-Spends as little as possible -Launches new ideas in response to changing consumer tastes or attitudes |
|
|
Government support for enterprises and entrepreneurs
|
-Small businesses are vulnerable in the early stages. There are lots of sources of help and guidance available.
-Government grants come from a variety of sources, such as: -Central government -Local government -EU -Organisations which specialise in encouraging business growth in particular areas of the country such as Scottish Enterprise and Invest NI |
|
|
Government measures to help business growth
|
-Reducing business taxes and trying to establish and maintain a modern and competitive business tax system
-Reducing the regulatory burden on enterprises -Reducing barriers to raising finance for small businesses -Improving the support for small and new businesses -Promoting a change in the UK's enterprise culture |
|
|
Government measures to help business growth (cont.)
|
-Encouraging business start-ups in economically deprived regions of the UK
-Introducing legislation to promote competition -Funding projects to raise awareness of enterprise among under-represented groups of people -Reviewing how to encourage unemployed people to move into self-employment -Giving financial support to voluntary and non-profit organisations that are carrying out excellent work |
|
|
Importance of risk and reward
|
Failure occurs because of;
-Lack of finance -Poor infrastructure -Skills shortage -Complexity of regulations/red tape The ability to evaluate the risks and uncertainty that are an integral part of all business decisions is an important element of successful entrepreneurship. |
|
|
Notion of opportunity cost
|
Vital concept in business as there is always alternative decisions that could be made.
|
|
|
Motives of an entrepreneur
|
-Long-term low interest rates that making it easier to borrow money to start a business.
-A change in the political climate so the government supports enterprise and the entrepreneurial spirit. -Increasing affluence, often means that people start to look for meaning in their lives- trying to fulfil the dream of starting their own business. |
