A-Level AQA Business Revision Unit 1(Part 3) : Generating & Protecting Business Ideas

Protecting an idea is vital. If a firm comes up with an excellent idea or invention, if it isn't protected, it's competitors can steal it from them.

There are 3 types of legal protection:

- Copyright - Patent - Trademark

Patent - An exclusive right to use a process or produce a product, usually for a fixed period of time ( up to 20 years)

Trademark - A word, image, sound or smell, that enable a business to differentiate itself from competitors.

It's all well and good being able to protect a business idea. But the entrepeneur needs to be able to generate the idea to start off the business.

Sources of business ideas can come from:

-Personal Experience

When you have a want or need which is not currently being satisfied in the market.

-Business Experience

When you have sufficient knowledge and practice to create a 'better version or idea'

Innovation - Turning an invention into a profitable product

However, a problem for small businesses is that when they innovate, there may be little demand for their good or service. Sufficient market research is required to combat this. Another issue is that in order for the idea to be brought to the market, it may need a large amount of finance, that of which the firm does not have.