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Enterprise: from problem to business idea
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Many businesses start with someone spotting a problem and thinking 'there must be a better way'. GCSE Business calls this enterprise.
Key words
Enterprise means having the initiative to set up a business or a new project.
An entrepreneur is a person who takes a risk to start a business, in the hope of a reward.
Risks include losing money and time. Rewards include profit, independence and the satisfaction of building something.
An entrepreneur is a person who takes a risk to start a business, in the hope of a reward.
Risks include losing money and time. Rewards include profit, independence and the satisfaction of building something.
Where ideas come from
New ideas often come from:
A problem or need: something customers find hard, slow or expensive.
Changes: new technology, changing tastes, more awareness of the environment.
Improving an existing product: making it cheaper, better or more convenient.
A problem or need: something customers find hard, slow or expensive.
Changes: new technology, changing tastes, more awareness of the environment.
Improving an existing product: making it cheaper, better or more convenient.
Qualities of entrepreneurs
Successful entrepreneurs are usually creative (they spot ideas), willing to take risks, hard-working and determined (they keep going after setbacks).
They also make decisions and organise resources: money, people and equipment.
They also make decisions and organise resources: money, people and equipment.
Amira notices her classmates struggle to find healthy snacks after school. She starts selling fruit pots outside the school gate. What is the risk and what is the reward?
- Risk: she spends money on fruit and pots and may not sell them all.
- Reward: profit from sales, and the satisfaction of running her own business.
Answer: Risk: losing the money she spent on stock; reward: profit and satisfaction
Enterprise is the initiative to start something new. Entrepreneurs take risks hoping for rewards. Ideas come from problems, changes and improving products. Entrepreneurs are creative, risk-taking, hard-working and determined.
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