KEY POINTS:
- Enterprise
- Enterprise skills
- Entreprenurs
- lack of finance
- poor infrastructure
- skills shortages
- often high profits to be made from a business idea that competitors are afraid to exploit.
OPPORTUNITY COST = THE NEXT BEST ALTERNATIVE FORGONE
Sources of business idea
4 major resources:
- spotting trends
- niticing something that is missing from the market
- copying ideas
- taking a scientific approach
Identify of a PRODUCT & MARKET NICHE
FRANCHISING
- The the business(the franchisor) gives the right to supply its product or service to another business(the franchisee)
-It is important to know the benefits and drawbacks to be the franchisee/franchisor
PROTECTING A BUSINESS IDEA
- Cory right
- Patents
- Trademarks
Transforming resources into goods and services
Inputs = factors of production:
- Land
- Labour
- Capital
- Enterprise
Inproving effeciency:
- using recyclale/renewable resources
- greater traning of the workforce
- imcreasing the level of capital equipments
- improvements in the entreprenuerial skills
PRODUCTION
-the process whereby resources are converted into a form that is inthended to satisfy the requirements of potential customers.
TRANSFORMATIO PRCESS: INPUTS TO OUTPUTS
ADDING VALUE
-The process of increasing the worth od resource by modifying them
VALUE ADDED
-Sales revenue minus the cost of bought-in materials, components and services.
