Business · Topic 1: Investigating small business
Enterprise and entrepreneurship
Why and how new business ideas come about, what an entrepreneur risks and stands to gain, and how businesses add value to meet customer needs.
Lessons
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1
The dynamic nature of business
Business never stands still. New technology, changing customer wants and products that go out of date all create chances for new business ideas, which come…
6 terms -
2
Risk and reward
Starting a business means risking business failure, financial loss and the security of a regular wage. Entrepreneurs take those risks for the rewards of…
8 terms -
3
The role of business enterprise
Businesses exist to produce goods or services that meet customer needs, and they succeed by adding value. Entrepreneurs add value through convenience…
8 terms
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- The dynamic nature of business.pptx Built from the lesson script on 24 September 2026. View
- The dynamic nature of business - Completed Notes.docx The full notes for the lesson, to revise from. Built from the lesson script on 24 September 2026. View
- The dynamic nature of business - Exam Questions.docx Built from the lesson script on 24 September 2026. View
- Risk and reward.pptx Built from the lesson script on 24 September 2026. View
- Risk and reward - Completed Notes.docx The full notes for the lesson, to revise from. Built from the lesson script on 24 September 2026. View
- Risk and reward - Exam Questions.docx Built from the lesson script on 24 September 2026. View
- The role of business enterprise.pptx Built from the lesson script on 24 September 2026. View
- The role of business enterprise - Completed Notes.docx The full notes for the lesson, to revise from. Built from the lesson script on 24 September 2026. View
- The role of business enterprise - Exam Questions.docx Built from the lesson script on 24 September 2026. View
Key terms in this chapter
All 22, gathered from every lesson.
- Dynamic
- Constantly changing. Business markets are dynamic because technology, customer wants and competition keep changing.
- Obsolete
- Out of date and no longer wanted, usually because a better product has replaced it.
- Consumer wants
- The goods and services that customers would like to buy.
- Original idea
- A completely new product or service that has not been offered before.
- Adapting
- Changing an existing product, service or idea to improve it or to suit different customers.
- Innovation
- Turning a new idea into a product or service that is actually sold.
- Entrepreneur
- Someone who sets up a business, organising resources and taking risks in the hope of a reward.
- Risk
- The chance that something will go wrong, such as the business failing or the owner losing money.
- Reward
- What an entrepreneur gains from running a business: success, profit and independence.
- Business failure
- When a business closes because it cannot cover its costs.
- Financial loss
- Losing money, for example savings invested in a business that fails.
- Lack of security
- Having no guaranteed income, sick pay or holiday pay, as an employee would.
- Profit
- Total revenue minus total costs.
- Independence
- Being your own boss and making your own decisions.
- Goods
- Physical products that can be touched, such as a phone or a pair of trainers.
- Services
- Things done for a customer, such as a haircut or a taxi journey.
- Added value
- The difference between the selling price of a product and the cost of the bought-in materials used to make it.
- Convenience
- Making a product quicker or easier for customers to buy or use.
- Brand
- A name, symbol or design that makes a product recognisable and different from its competitors.
- Quality
- How well a product meets customers' needs: how well made and reliable it is.
- Design
- How a product looks, works and is used.
- Unique selling point (USP)
- A feature of a product or service that makes it different from all its competitors.