business studies: unit 1

business studies: unit 1

1. Enterprise

   • An enterprise is the formation of a new business or development of a new product or service that will be introduced into the market

2. What is an entrepreneur

   • An entrepreneur is someone who is willing to take the risk in setting up a new business
   • they can be anyone eg. male,female,young,old
     • Examples of some: Levi Roots,Steve jobs,Oprah winfrey,JK.Rowling
   • There are certain skills that they will need to have eg. creative,hard working,confident,persuasive,good business skills

3. Why do businesses exist?

   • To produce goods,provide a service,help others,meet the needs of society
   • sources of business ideas?
     • Personal experience,business experience,market research,brain storming

4. Market gap

   • A market gap is an unmet consumer need. Gaps in the market represent opportunities for companies to expand their customer base.
   • What is a niche?
     • A niche is a gap in the market

5. What is market research

   • Finding out what the customer wants
   • What already exists and how it can be improved

6. What is a business?

   • A business is an organisation that is set up to provide goods or services to customers eg: the public,goverment or other businesses

7. Why start a business?

   • Reasons why some may want to start up thier own business: To persue an intrest or hobby, to escape a boring job,to provide a service, to be thier own boss

8. sectors

   • primary
     • the primary sector produces raw materials
   • secondary
     • the secondary sector manufactors goods
   • Tertiary
     • The tertiary sections provides services such as selling goods

9. Business ownership structures

   • partnerships
     • partnerships are not that common
       • advantages/disadvantages
         • Less work, more money to put into the business,more ideas and unlimited liability. however the disadvantages are more disagreements and less profit
   • Sole trader
     • Most small businesses are sole traders
       • advantages/disadvantages
         • There is only one owner unlimited liability, would have to work long hours and may have to sell personal belongings to pay debts

10. Aims and objectives

    • Year 1: To survive
    • Year 2: Make profit
    • Year 3: Expand the business

11. Franchises

    • A franchise is when one business (the franchisor) gives another person or business (the franchisee) the right to trade using its name and to sell its products or provide its services
      • The franchisee normally pays a licence fee and a percentage of profit to the franchisor
        • Advantages
          • Less chance of failure as the business is well known ,help and support,big amounts of profit, lots of customers.
        • Disadvantages
          • You have to pay licence fees,its not your own business,training fees,you will have to give a percentage of your profits to the franchisor also there are certain rules you have to follow that the franchisor sets.
      • Examples of franchises are new look,primark,mcdonalds,kfc and many more well know brands and shops