1.1 The role of business enterprise and entrepreneurship

[0:01]Welcome to a new set of videos for OCR GCC Business. These are just updated videos based on some different elements such as mark schemes, training, things like that, so they may include slight changes to the previous videos that might be worth looking at. I'll still keep the previous videos saved on YouTube, but I would have a little look at these ones going forward if you're studying OCR GCC business. I'll create a playlist to put all of these videos in. Um, so let's get started then. So the role of business enterprise and entrepreneurship, so this is 1.1, so this is the start of unit one. This is right at the beginning probably of your year 10 studies. Most of these videos will be pretty short, pretty sharp, just containing the main information that you need to know. So a few key terms that you should know. Entrepreneur: The main part about an entrepreneur that you need to know is they are somebody that is usually taking a risk and setting up or running a business. Spotting an opportunity is usually an entrepreneur looking and seeing what sort of product or service that customers need or want. Finding that opportunity and then looking to sell some sort of product or service to those people. There's a few enterprising characteristics that you need to know that an entrepreneur might have. Uh things as such as determination, creativity, and being willing to take risks. So, why do businesses exist then? Um, some exist just to provide goods and services, so goods are a physical product and service is not a physical product, so it's intangible, you can't touch it such as a haircut or a taxi journey. Um some businesses exist to satisfy the needs of customers, so customers want something and then businesses will provide it. The majority of the time most businesses exist to make a profit, so make a sort of a financial reward for whatever they're doing. Um, some businesses exist just to produce a rival product or service. So maybe they've seen a business do particularly well and they think we can do it better or we can do it a similar level and then they produce a product or service to compete with them. So in terms of developing an idea for a business, um, once an entrepreneur thinks about an opportunity, they will then go ahead and start developing a product or service. Um, so for example, it could be a a smartphone and one criticism of smartphones is they've got poor battery life, so therefore a new business might come along and think, oh, we can set up a smartphone that's got, you know, a three or four-day battery life on it. So what is enterprise? Um, so enterprise is seeing that opportunity and then providing a product or service that people are willing to buy. And this is just an example of the Google founders. There's a few characteristics of entrepreneurs that I've already mentioned. So creativity, so that's not necessarily obviously like an artistic flair or anything. It's it's more to do with, uh, you know, coming up with solutions to problems. Being a risk taker is one of the key elements of being an entrepreneur, so, you know, taking that risk, taking that gamble, you know, it's not guaranteed that you're going to make money, so, uh, you know, take a risk. Determination, so when you no doubt hit barriers, hit problems, overcoming them, uh working around them, uh that's a a key characteristic of an entrepreneur and also confident, you know. And again, that's not necessarily like public speaking or anything, but it's the confidence of when you get hit by a problem, do you have a solution to it? Um, when things don't go so well, overcoming those problems. Um, so rewards and drawbacks of risk-taking, one thing you'll notice here is financial is both a reward and a drawback and that is because if you take a risk, it could potentially go well financially for you and you can make a lot of money. Or it may not go so well and you could potentially lose money. So that's why financial's on both sides. So let's stick with the rewards then. Um, so it does give you independence, you know, if you go ahead and set up your own business and and take a risk, you don't work for anyone, you can operate as a sole trader, work for yourself, uh be self-employed and then and then set up a business that way. And that gives you that independence, especially if you don't like taking orders from managers and things like that. Gives you a lot of self-satisfaction, you know, if you set up a business yourself and you have ownership of it, that can make you feel quite good. Uh and you can also change customer habits, which can be really rewarding. So, um, for example, like if we go back to the Google founders, that has changed how people go about using the internet and purchasing products. And that will give them a lot of satisfaction. Uh potential drawbacks, already talked about financial, but also health elements, you know, if you're working extremely long hours, that can be very stressful and it can lead to some problems and health if you work too long hours, too stressful situations, that's something to bear in mind. And it also can lead to strained relationships because again, if you're working really, really long hours, you might not see your family that much, especially in the early days of setting up a business. That's everything for 1.1. Thanks very much.