Entrepreneurship: A Look at Wants and Needs Chapter 1 and 2

Entrepreneur What is this? What are the risks? A person who takes risks to start their own business. What are the risks? Money Time Property

Wants Things you wish you could have. Can add pleasure to your life.

Needs Food Shelter Clothing Basic Needs

Goods Satisfy your wants and needs for material things you can see or touch. Bicycle Skates Groceries Cell phone

Services Tasks that people or machines perform. Satisfies some of your wants for things you can’t see or touch. Many services are provided for a fee.

What is Business? Any activity that seeks profit by providing goods or services to others.

Economic Resources Factors of production Land (natural resources) Labor (Human resources) Capital (capital resources) Entrepreneurship

Basic Economic Problem Scarcity Must make economic choices You can’t have everything you want.

Businesses’ Motivation Profit!!! Amount of money left over after a business has paid for the cost of producing its goods and services.

Competition The contest between businesses to win customers. A direct response to consumers’ wants and needs.

Consumer Person who selects, purchases, uses, or disposes of goods or services.

Customer Person who buys a product but doesn’t use it.

Business and You Businesses make decisions that impact you. When they discontinue products When they offer new products. Businesses affect you as a wage earner. Businesses hire people to make the product.

The Value of Knowledge Need business knowledge to be a wise consumer.