AQA UNIT 1 BUSINESS IN THE REAL WORLD

1. 1.1 Purpose and reasons
for starting a business
UNIT 1 – Business in the Real World

2. Most recognised business brands?

3. What is a
business?

4. Definition of a business
• A business is an organisation who produces goods and
services to generate money or profit.

5. Write out the definitions below:
• A good is a physical product such as a car
• A service is an intangible product (that is you cannot
touch it), such as financial advice or a bus journey.
• A customer is someone who buys a product from a
business
• A consumer is someone who uses goods and services
produced by a business. They are the end-users of these
goods and services.
• A business is an organisation who produces goods and
services to generate money or profit.

6. The purpose of business
• A business is an organisation that produces a good or
supplies a service, such as Apple produces and sells
iPhones.
• A good is a physical product,
such as a car.
• A service is an intangible item
(that is, it is something that you
cannot physically touch), such as
having your hair cut.
• The aim of a business is to provide
goods and services that customers want or need.

7. Are the following
goods or services?
Task
Goods or Services?

8. Self Assessment
Use GREEN pen
How many
did I get right
How can I
improve my
knowledge?
Make any
corrections
in GREEN PEN
S
S
S
S
G
G G
G
G
Goods or Services?

9. What is the
difference
between a want
and a need?

10. The purpose of business
• Successful businesses are those that satisfy
customers wants and needs.
• A need is something a human cannot live without,
such as food.
• A want is something that you desire. You may want
the latest Samsung mobile – not just any mobile.

11. Reasons for starting a business
• An entrepreneur is someone who is willing to take the risks
involved in starting a new business.
• Can you name a famous entrepreneur?
• Entrepreneurship refers to the ability to be an entrepreneur
such as being able to take risks to develop a business idea.
• Can you think any other qualities of entrepreneurship?
• Creativity
• Motivation
• Vision
• And many more…

12. Objectives/motives of entrepreneurs
• Be their own boss.
• Keep all the profits of the business.
• Interest or hobby that becomes a
business.
• Satisfaction from being a success
in their business.
• Flexibility of working for their own business, rather
than
a 9–5 job.
• They want to provide a service for others known as
a social enterprise, which is about helping society
rather than just making profits.

13. The characteristics of entrepreneurs
• Innovation: this means entrepreneurs are good at spotting
an opportunity, e.g. Facebook’s Mark Zuckerberg.
• Risk takers: this is where an entrepreneur takes a risk trying to make
their idea work, e.g. Google inventor Larry Page is worth $30bn.
• Hardworking and determined: entrepreneurs need to be
prepared to work long hours and struggle to get the best
deals from their suppliers for their customers. Bill Gates of Microsoft
worked 16 hours a day for 5 years.
• Organised: running a business involves many skills and decisions in
order to meet challenging deadlines. How many businesses does
Richard Branson currently run?
• 400 – can you name one?
Innovation
Bill Gates

14. • Become an entrepreneur and create your own business.
Checklist:
• What am I selling? State: Goods or services?
• Who am I selling to? State: Target customers e.g. Football
Boots to teenagers.
• How will my product be different? Think about who you
are competing against e.g. Nike, Adidas.
• Extra: Design a logo for your business.
Build a Business