Needs and wants are not fixed they can change quickly as fashions and

lifestyles change.

Needs and
Wants Needs and wants can also change long-term as income increases and the
population changes.

Therefore, the business environment does not remain the same, as needs and
wants change

New business opportunities arise which entrepreneurs often exploit.

Question?
Can you identify and explain a need or want that has risen or fallen
dramatically in the last 50 years?
 Goods are physical tangible items that the business produces
to sell. Can be durable or non-durable. Durable goods can be
used repeatedly for a long time, e.g. TVs. Non-durable goods
are used soon after they are purchased, e.g. food.

GOODS
AND
SERVICES
Services are intangible business activities that people are
prepared to pay for e.g. Insurance, hairdressing, banking, and
leisure services.
Alternatively, an entrepreneur may find an innovative way of providing a
product or service that is different to what current businesses are
offering.

For example:
• Uber
• Online banks (Monzo, Tide, Starling)
• Tesla cars
• Netflix
 Role of the entrepreneur in developing a business (AO3)
Owning/leading a business – as the owner, the entrepreneur will arrange the finance to set up the business and
also finance any growth that may occur.

Setting up the business - entrepreneurs often to their passion and knowledge of the product or market to inspire
others as well as commit to the business, which is why entrepreneurs have strong leadership skills.

Organisation/managing/planning of business – this may range from setting up machinery, hiring staff, marketing
the products or services on offer.

Risk taking – the entrepreneur will take a risk by investing their own money or by taking out debt to finance an
idea that is not guaranteed to be successful, this can mean the entrepreneur may lose their money they initially
invested in the business.
Decision-making – Many decisions need be made on various aspects of the business including finance,
employment, marketing etc.

Acting as innovator – provide innovative ideas to develop existing products or introduce new ones that will
ensure the future success of the business.

Securing finance – money to fund the business can be raised both internally and externally.

Formulate a business plan – sets out vision for the development of the business.
The Motives of Entrepreneurs
Entrepreneurial motives Entrepreneurial motives are the reasons that drive a
person or people to set up in business. These include financial motives such as
making a profit or making the maximum profit available, known as profit
maximisation.

Financial motives:
•Generate a profit
•Provide employment for self
•Financial security for self and family
Non-financial motives
Main motive is to make sufficient profits to satisfy the entrepreneur but not necessarily the greatest profit
possible.

• Self satisfaction/challenge

• Create employment for others Social/community

• Ethical stance — starting a business with the intention of helping others,

• Social entrepreneurship — the motive is to create a sustainable, profit-making business that also benefits
the community, e.g provide employment, second-hand bookshop.

• Independence and home working —the entrepreneur wants more freedom to work when and where they
please, perhaps to fit around family or other commitments.

• Social enterprises are those whose prime objective is to do good in society rather than to make a profit.

• Surplus revenue is used to support a specific cause e.g. a children’s charity or community group
 Persuasive Visionary Energetic Resilient

Creative Innovative hard working Passionate

Characteristics
of an
Strong minded
entrepreneur Determined Decisive
leadership
Inspire

Disciplined Self-Motivated Flexible Risk-Taker

Confident