Three friends had formed a business buying run-down houses, doing them up and selling them on for a profit. Their first house cost them £180 000. If Anthony had invested a third of the amount Basinder had put in, and half of Cathy’s, he could have bought the house by himself. If Basinder had invested half of Anthony’s money and a quarter of Cathy’s he could have bought the house himself. If Cathy had invested a quarter of Anthony’s money and one-sixth of Basinder’s, she could have bought the house herself. How much money did each have to invest? Anthony £40000, Basinder £60000, Cathy £80000. 1.2.1 What is enterprise? 1.2.1 What is enterprise?

Enterprise and Entrepreneurs What is Enterprise? The willingness to undertake new ventures and show initiative with a view to gaining rewards. Enterprise is the starting point to any business activity Dale Carnegie – Author “How to win friends and influence people” 1936 "The person who gets the farthest is generally the one who is willing to do and dare. The sure thing boat never gets far from shore.“ Dale Carnegie 1.2.1 What is enterprise?

Enterprise and Entrepreneurs What is an Entrepreneur? A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards. Entrepreneurs make use of the resources available to them to set up or develop a business 1.2.1 What is enterprise?

Enterprise and Entrepreneurs Why are entrepreneurs important? Create employment Innovation Increase competitiveness Small businesses are the future large businesses Make your mark www.enterpriseweek.org "Every young person has something to offer. Every young person has a talent that if unlocked will make a contribution to their economy and their society.” Gordon Brown 1.2.1 What is enterprise?

Enterprise and Entrepreneurs Innocent Drinks Watch an interview with Innocent’s Richard Reed Read more about how innocent went from concept to success www.innocentdrinks.co.uk What risks did Richard Reed take in setting up the business? Source: http://www.bbc.co.uk/news/business-11551271 1.2.1 What is enterprise?

The notion of opportunity cost What opportunities have you given up to be studying for your GCSEs? What opportunities does an entrepreneur give up to pursue their aims? Time commitment Money commitment Alternative career path 1.2.1 What is enterprise?

Opportunity Cost In business (or life) every time one decision is made an alternative decision has been dismissed The “real cost” of any course of action, taking into account not only financial costs but also the cost of alternatives forgone An A grade concept Is opportunity cost an entrepreneur’s biggest cost? Read more 1.2.1 What is enterprise?

The difference between goods and services Goods are tangible products – you can touch them. These might include a car, food, books etc. Services are intangible – you can’t touch them. These might include teaching, banking, waitressing etc. Sometimes it is difficult to distinguish between the two. A restaurant will provide a good (the food) and a service (the atmosphere). Products are either goods or services. 1.2.1 What is enterprise?

The difference between goods and services Look at the table below. Identify whether the product is a good or a service. Product Good or service? Holiday Orange Advertising Football match Hat Air transport Text book Lawyer 1.2.1 What is enterprise?

MULTIPLE CHOICE 1. Which two of the following are important features of enterprise □ A Lower market share □ B Showing initiative □ C Seeking of rewards □ D High costs □ E Low fixed costs 1. B 2. C 1.2.1 What is enterprise? 10