What is a business opportunity?

A business opportunity is a gap in the market, where customers have a need that no business is meeting well. An entrepreneur who spots one can build a business around it.

How might an entrepreneur spot a gap in the market?

An entrepreneur might notice a problem in their own life that no product solves. A change in technology or fashion can also create demand that is not yet met.

Why must an entrepreneur develop an idea before launching a business?

Development turns a rough idea into a product customers will buy at a price that covers its costs. A test of the idea at this stage can reveal problems before money is spent.

OCR GCSE Business J204

Business Activity

Topic overview Enterprise and entrepreneurship Business planning and the business plan Sole traders, partnerships and limited companies Business aims and objectives Internal and external stakeholders Organic and external growth How business functions depend on each other

Marketing

Topic overview The purpose of marketing Primary and secondary market research Market segmentation Product design and the product life cycle Pricing methods Point of sale promotion and advertising Place and the marketing mix

People

Topic overview The role of human resources Organisational structures and ways of working Communication in business Recruitment and selection Employee motivation and retention Training and staff development Employment law

Operations

Topic overview Production processes Quality of goods and services The sales process and customer service Consumer law Business location Procurement and choosing suppliers Logistics and supply chains

Finance

Topic overview The role of the finance function Sources of finance Revenue, costs, profit and loss Break-even Cash, liquidity and profit Cash flow forecasts

Influences on Business

Topic overview Ethical and environmental considerations The economic climate Globalisation and multinational companies International branding and competition

Business Activity

Enterprise and entrepreneurship

3 things to know
Component 01

Overview

Enterprise and the entrepreneur, the purpose of business activity, spotting and developing an opportunity, the qualities of a successful entrepreneur, and weighing risk against reward.

What you need to know

Answer each one before you reveal it.

Your recallNot started

Key term

What is an entrepreneur?

Key term

Define the term enterprise.

Key term

What is the main purpose of business activity?

Questions from this subtopic

Each one with the model answer underneath.

1
What is an entrepreneur?
Model answer
An entrepreneur is someone who spots a business opportunity and risks their own money and time to act on it.
2
Define the term enterprise.
Model answer
Enterprise is the willingness to take the initiative and the risk needed to start a new business or project.
3
What is the main purpose of business activity?
Model answer
Business activity exists to provide goods and services that satisfy the needs and wants of customers. A business that does this well can earn a profit.
4
What is a business opportunity?
Model answer
A business opportunity is a gap in the market, where customers have a need that no business is meeting well. An entrepreneur who spots one can build a business around it.
5
How might an entrepreneur spot a gap in the market?
Model answer
An entrepreneur might notice a problem in their own life that no product solves. A change in technology or fashion can also create demand that is not yet met.
6
Why must an entrepreneur develop an idea before launching a business?
Model answer
Development turns a rough idea into a product customers will buy at a price that covers its costs. A test of the idea at this stage can reveal problems before money is spent.

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Business Activity

Marketing

People

Operations

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Customers may receive quality.

poorerbetterhigher

Blank Blitz makes facts automatic

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AOwners may gain from higher profit.

BEmployees may lose jobs or face lower pay.

CCustomers may receive poorer quality.

Build It gets the exam shape right

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Aim means a broad long-term goal of a business.

TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

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Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Business Activity, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

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