Businesses, Scarcity & Entrepreneurs: The Basics

Year 7 Business Studies Understanding Economic Fundamentals

Think About This...

You have $20 to spend on lunch There's a burger for $15, pizza for $12, and sushi for $18 Which do you choose and why? What did you have to give up?

What is Economic Scarcity?

Limited resources vs unlimited wants We can't have everything we desire Forces us to make choices Example: Time, money, natural resources

Scarcity in Action

Scenario: Your school has $10,000 to spend Options: New computers, sports equipment, or library books Work in groups of 4 Decide what to buy and present your reasoning

Why Do Businesses Exist?

To solve problems and meet needs Provide goods and services people want Create jobs and employment Make profit for owners/shareholders

Types of Business Ownership

{"left":"Sole Trader: One person owns and runs the business\nPartnership: 2-20 people share ownership\nCompany: Shareholders own the business","right":"Examples: Local bakery\nExamples: Law firm, medical practice\nExamples: Qantas, Commonwealth Bank"}

Famous Australian Entrepreneurs

Gina Rinehart - Mining empire Mike Cannon-Brookes - Atlassian software Melanie Perkins - Canva design platform Frank Lowy - Westfield shopping centres

Entrepreneurial Mindset

'Entrepreneurs see opportunities where others see problems'

Key Entrepreneurial Characteristics

Key Takeaways

Scarcity forces us to make choices Businesses exist to meet needs and solve problems Different ownership types suit different situations Entrepreneurs drive innovation and economic growth Success requires multiple skills and characteristics