The concept of “needs” and “wants” forms the basic premise as to why businesses even exist, because without demand from peoples’ needs and wants there would be no supply, nor would entrepreneurs need to innovate in order to remain competitive – this unit’s statement of inquiry. In fact, there would be no competition at all if that were the case! Therefore, I’ve learned that it is important not only for businesses to offer goods or services that satisfy the current needs and wants of consumers, but also for them to produce new, innovative goods or services so as to keep up with the changing needs and wants of the people. This is how what I’ve learned relates to the global context of change. In other words, if a business wants to compete with other businesses, they must be constantly monitoring the evolution of society’s needs and wants – as new opportunities brought forth by factors such as technological or scientific discoveries emerge, businesses and entrepreneurs should capitalize on them, evolve, and hopefully innovate to take up a greater share of the market.
For the uninitiated, needs and wants are two forms of demand to which businesses satisfy. I’ve learned that a need is something that you must have, something you wouldn’t be able to live without. For most people our needs are similar: food, hydration, shelter, clothing, and perhaps basic healthcare. On the other hand, a want is something that you fancy having. It is not absolutely necessary for survival, but it would definitely enhance your life if you had it. For example, although a candy bar may look enticing, it is classified as a want because you can do with eating rice and vegetables. Your phone might allow you to text message your friends, but you won’t literally die without it – in fact, it might even improve your lifestyle.
What I’ve learned answers the unit question what creates opportunities for entrepreneurs to start a business? because I now know that entrepreneurs start a business when certain needs and wants can be fulfilled in a new, creative way. This also somewhat supports the questions how entrepreneurs respond to the needs and wants of society and what drives innovation because only by observing the needs and wants of society will entrepreneurs be able to come up with an innovative idea.
As mentioned previously, here is a mind map of the content I’ve learned so far and its relevance with the statement of inquiry, global context, and unit question. The mind map will grow as more content is acquired.
Image source: https://upload.wikimedia.org/wikipedia/commons/0/04/Anvil_Lake_Campground_Shelter.jpg