Practise Exercise.

1. Define the term '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 created and brought to the market. Enterprises are usually led by an entrepreneur.

2. What is an entrepreneur?

- Entrepreneurs are 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 profits that come with success or the losses that come with failure.

3. Give three examples of successful entrepreneurs...

a) Levi Roots - Reggae Reggae Sauce
b) Sir Alan Sugar - Amstrad
c) Bill Gates - Microsoft

4. Identify four characteristcs of successful entrepreneurs...

i) Passion & determination
ii) Ability to realise and take advantage of opportunities.
iii) Vision & creativity
iv) Being able to take risks

5. Explain why the ability to take risks is important in developing a successful buisness...

- Taking risks can be a very vital part of a businesses success. It's important for a business to take certain risks because if they don't take these risks then they might not progress further into success. So taking risks could be the only path for some businesses to succeed even more in making profit.

6. Define the term 'opportunity cost' and gives examples of how it might apply to you as a student, to your school or college, and to a business...

- The 'real cost' of taking a particular action or the next best alternative forgone. This could apply to a student because they could have decided to take a certain subject but didn't get into the class and instead of choosing a subject they are good at they chose a class with their mates in it. This could apply to a school by letting one of their best teachers go over something stupid such as being late to lessons. This could apply to a business by loosing an outstanding applicant for a job role and giving it to the next person they thought ws right for the job, with time another outstanding applicant would have surely turned up for the job.

7. Suggest three reasons why an individual might become an entrepreneur...

-
i) Because they feel they have a genually good idea that will make money and they want to sell it.
ii) Because they feel their product can help people/the environment and they want to sell this to help those people or the environment.
iii) They want a quick way to make alot of money.

8. Why are an enterprising culture and people with entrepreneurial skills important for the UK economy?

- These kinds of thing are important for our economy because they contribute towards our country getting out of recession. If more entrepreneurs step forward to start up an enterprise then the rates of unemployment would decrease and then more people would have money to spend on products to help start to rebuild Britains economy.

9. Explain 3 ways in which government supports enterprise and entrepreneurs.

i) Holding enterprise weeks to raise awareness about enterprise
ii) Cutting down corperation taxes.
ii) Improving support for new & small businesses

10. State two organisations other than central government that provide support new businesses...

i) Enterprise Insight
ii) Young Enterprise