Enterprise

Understanding Enterprise

  • Enterprise refers to the identification of new ideas and business opportunities and the ability to take advantage of them.
  • Entrepreneurs are important figures in enterprise as they bring together resources to achieve new business opportunities.
  • Characteristics of an entrepreneur may include: creativity, risk-taking, self-confidence and the ability to show initiative.
  • Enterprises can be in the form of a new business, a new product, or a new process for an existing business.

Risk and Reward in Enterprise

  • Risk-taking is a significant part of enterprise. This could be financial risk (loss of investment), social risk (damage to reputation), or career risk (loss of secure employment).
  • In enterprise, potential rewards justify risks. The rewards can be divided into two categories: financial and non-financial.
    • Financial rewards include profits, increased sales, or higher market share.
    • Non-Financial rewards could involve a sense of achievement, job enjoyment, or personal development and job satisfaction.

The Role of Entrepreneurs

  • Entrepreneurs play a vital role in enterprise by bringing together all the resources needed to produce goods or provide services.
  • They take the risk and make strategic decisions to ensure the success of their enterprise.
  • Entrepreneurs require a diverse range of skills and qualities. This may include being a decision maker, an organiser, a risk taker, and having the ability to lead and motivate others.

Influence of Business Location

  • Entrepreneurs consider the location of their business crucial to its success as it can affect cost, demand, and the availability of resources.
  • Factors influencing location include: proximity to market and competition, transport links, availability of resources, legal factors and local economic conditions.

Remember, understanding enterprise involves understanding the risks and rewards involved and the pivotal role played by the entrepreneur. The success of an enterprise can heavily rely on location and market conditions. It’s equally important to recognise the role of creativity and initiative in identifying new business opportunities.