Entrepreneurs use their own money or borrow money to put all the necessary resources together. They often have to give up other work and their regular income. They invest the time, money and effort on a business idea that might or might not work. Entrepreneurs are takers’ they can stand to lose everything if the idea doesn’t work. ‘risk – Many entrepreneurs use franchising as a means of starting up their own business this – reduces the risk of failure as support and guidance is provided by the franchiser. Most well-known entrepreneurs are people who started their own businesses from scratch, like Richard Branson and Virgin, Sir Tom Farmer and Kwik-Fit, Bill Gates and Microsoft. Sectors of industry The primary sector comprises businesses involved in taking natural resources from the land, that is, agriculture and extractive industries such as coal mining. The secondary sector consists of businesses which use resources to make or build their products, that is, manufacturing and construction organisations. The tertiary sector is made up of all the organisations provide services rather than goods. This sector includes activities such as banking and hairdressing, where a service is performed for a customer but no goods change hands, transporting goods, and acting as an intermediary between manufacturer and customer. The Quaternary Sector can also be described as the support sector, and activity here is based around organisations which provide information, especially to businesses. IT consultancy, research and development, and consultancy services (for example management consultants such as Accenture) operate in this sector of activity. Countries tend to go through three stages of development. In the first they are dominated by the primary sector, as is the case in less developed countries (and was true of the UK up until the Industrial Revolution 200 years ago). In the second stage, experienced by the UK from around 1800 until the middle of the 20th century, secondary sector industries such as steel, car manufacturing and shipbuilding are the most important. During the last 40 years the process of de-industrialisation (or decline in the importance of manufacturing) has gathered pace. Today in the UK, as in most industrialised nations, the tertiary and quaternary sectors are by far the largest and fastest growing ones, both in terms of output and employment. Sectors of the economy Organisations are groups of people who combine their efforts and use their resources to achieve a particular purpose. Business organisations are organisations whose purpose is to satisfy consumers’ wants by producing goods and/or services. Private-sector organisations are owned and controlled by private individuals and investors.
Entrepreneurs use their own money or borrow money to put all the necessary resources together. They often have to give up other work and their regular income. They invest the time, money and effort on a business idea that might or might not work. Entrepreneurs are ‘risk takers’ – they can stand to lose everything if the idea doesn’t work. Many entrepreneurs use franchising as a means of starting up their own business – this reduces the risk of failure as support and guidance is provided by the franchiser. Most well-known entrepreneurs are people who started their own businesses from scratch, like Richard Branson and Virgin, Sir Tom Farmer and Kwik-Fit, Bill Gates and Microsoft. Sectors of industry The primary sector comprises businesses involved in taking natural resources from the land, that is, agriculture and extractive industries such as coal mining. The secondary sector consists of businesses which use resources to make or build their products, that is, manufacturing and construction organisations. The tertiary sector is made up of all the organisations provide services rather than goods. This sector includes activities such as banking and hairdressing, where a service is performed for a customer but no goods change hands, transporting goods, and acting as an intermediary between manufacturer and customer. The Quaternary Sector can also be described as the support sector, and activity here is based around organisations which provide information, especially to businesses. IT consultancy, research and development, and consultancy services (for example management consultants such as Accenture) operate in this sector of activity. Countries tend to go through three stages of development. In the first they are dominated by the primary sector, as is the case in less developed countries (and was true of the UK up until the Industrial Revolution 200 years ago). In the second stage, experienced by the UK from around 1800 until the middle of the 20th century, secondary sector industries such as steel, car manufacturing and shipbuilding are the most important. During the last 40 years the process of de-industrialisation (or decline in the importance of manufacturing) has gathered pace. Today in the UK, as in most industrialised nations, the tertiary and quaternary sectors are by far the largest and fastest growing ones, both in terms of output and employment. Sectors of the economy Organisations are groups of people who combine their efforts and use their resources to achieve a particular purpose. Business organisations are organisations whose purpose is to satisfy consumers’ wants by producing goods and/or services. Private-sector organisations are owned and controlled by private individuals and investors.
Notes-for-Understanding-Business.docx