1.1.3. The role of business enterprise

Worksheet

From Edexcel

The role of business enterprise and the purpose of business activity:•To produce goods or services •To meet customer needs •To add value: convenience, branding, quality, design, unique selling points

The role of entrepreneurship:•An entrepreneur: organises resources, makes business decisions, takes risks

Lesson objectives

• To be able to discuss the role of business enterprise and the purpose of business activity

• To be able to discuss the role of entrepreneurship

Starter

• How many products can you make from a humble spud? E.g. crisps

The role of business enterprise and the purpose of business activity

Purpose – to produce goods and services

• To produce goods and services 4 things are needed:

1. Land – somewhere to produce the goods e.g. a farm

2. Labour – people to work in the business e.g. farm workers

3. Capital – money to get the business started

4. Enterprise – This is the drive or motivation from the owners to start a business

These are the factors of production

Purpose – to meet customer needs

Some of the most common and basic expectations customers have for most businesses include:

A. • Fast, efficient and accurate serviceB. • High quality products at a competitive

priceC. • Friendly, helpful service staff to provide

information and answer questionsD. • Prompt responses to their inquiries,

whether online, by phone or in personE. • Sufficient stock to meet their needs

without long waitsF. • A trained staff that can handle their

questions without referring them onG. • A clean shop or easy to navigate website

Purpose – to add value

• Definition of added value:

• Added value – the difference between what a business pays its suppliers, and the price it is able to charge for its product or service

Added value

Purpose – to add value

Branding

Unique

Selling

Point

Design Quality

Ways to add value

to the product

or service

Convenience

Ways to add valueCan you think of other examples for each box? Design USP

Quality Branding Convenience

Ways to add valueCan you think of other examples for each box? Design USP

Quality Branding Convenience

The role of entrepreneurship

An entrepreneur – organises resources

• Enterprise is about taking risks, being creative and innovative and using your initiative

• An entrepreneurdevelops a business idea and then hires and organises the factors of production to carry out the business activity

This is Berrywhite, it

founded by Andrew Jennings

in 2011 based on ‘tastes

good, good for you, and good

for others’.

What resources do you think

he had to organise?

An entrepreneur – makes business decisions

http://smarter.am/ikettle/

This is Christian Lane – he started a website called smarter and invented the iKettleCustomers can boil their kettle using their smartphone. Christian had to decide what other products to stock on his site…

An entrepreneur – takes risks

1. Risk taking – Setting up a business is risky, money has to be paid out in advance to buy materials, equipment and wages

2. There is no guarantee that the final product or service will be sold

3. The entrepreneur bears all cost of the business fails

4. If an entrepreneur gives up a regular job they will also lose that income and have to depend on the business to pay their bills

This is George Burgess he is 24 and started a software

company called Gojimo and won

2015 Young Entrepreneur of the

year

Plenary

Factors of productionCan you label the diagram?

Sample question 1

Answer question 1

• Answer is B

Sample question 2

Answer question 2

Revisionstation

Written by Sarah Hilton ©