Flashcards
Entrepreneurship - Key Terms
Cards in this deck (30)
- 1EntrepreneursA person who assumes the risks of organizing and managing a business for the sake of potential rewards.
- 2ProductSomething that exists in nature or is made by human beings. It is tangible, meaning that it can be physically touched.
- 3ServiceLabor or expertise exchanged for money. It is intangible. You cannot actually touch it.
- 4Free Enterprise SystemEconomic system in which businesses are privately owned and operate relatively free of government interference.
- 5CapitalismThe free-market system; characterized by individuals and companies competing for economic gains, private property ownership and wealth; free-market forces determine prices.
- 6CapitalMoney or property owned or used in business.
- 7Voluntary ExchangeA transaction between two parties who agree to trade money for a product or service.
- 8SalaryFixed amount of money paid to an employee at regular intervals.
- 9WageFixed payment per hour for work performed.
- 10DividendEach stockholder's portion of the profit-per-share paid out by a corporation.
Must be paid to all shareholders. - 11CommissionA percentage of a sale paid to a salesperson or employee.
- 12Cost/Benefit AnalysisA decision making process in which the costs of taking an action are compared to the benefits.
- 13Opportunity CostThe value of what must be given up in order to obtain something else.
- 14Social EntrepreneurshipA for-profit enterprise that has the dual goals of achieving profitability and attaining social returns.
1. Adopting a mission to create and sustain social value (not just private)
2. Recognizing and relentlessly pursuing new opportunities to serve that mission.
3. Engaging in a process of continuous innovation, adaptation, and learning.
4. Acting bolding without being limited by resources currently in hand.
5. Exhibiting heightened accountability to the constituencies served and for the outcomes created. - 15Venture PhilanthropyA subset or segment of social entrepreneurship wherein financial and human capital are invested in not-for-profits by individuals and for-profit enterprises with the intention of generating social rather than financial returns on their investments.
- 16Green EntrepreneurshipEnterprise activities that avoid harm to the environment or help to protect it in some way.
- 175 Basic Ways that Entrepreneurs find opportunities to create new businesses1. Use a new technology to produce a new product.
2. Use an existing technology to produce a new product.
3. Use an existing technology to produce an old product in a new way.
4. Find a new source of resources (that might enable the entrepreneur to produce a product more cheaply).
5. Develop a new market for an existing product. - 18How do entrepreneurs create business ideas?1. Listen: Entrepreneurs can get ideas about improving a business or starting a new one. Create a business idea by listening. Describe how you got the idea.
2. Observe: By constantly keeping their eyes open, entrepreneurs get ideas about how to help society, about businesses they could start, and about what consumers need. Create a business idea by observing. Describe how you got the idea.
3. Think: When entrepreneurs analyze a problem, they think about solutions. What product or service could solve that problem? Create a business idea by thinking about a problem. Describe how you got the idea. - 19SWOT Analysis1. Strength
All the capabilities and positive points that the entrepreneur has, from experience to contacts. These are internal to the organization.
2. Weaknesses
All of the negatives that the entrepreneur faces, such as lack of capital or training, or inability to set up a workable accounting system. These are internal to the organization.
3. Opportunities
Any positive external event or circumstance (including lucky breaks) that can help the entrepreneur get ahead of the competition.
4. Threats
Any external factor, event, or circumstance that can harm the business, such a competitors, legal issues, or a declining economy. - 20Four Characteristics of a Business Opportunity1. It is attractive to customers.
2. It will work in your business environment.
3. It can be executed in the window of opportunity that exists.
4. You have the resources and skills to create the business, or you know someone who does and who might want to form the business with you. - 21The Five Roots of Opportunity in the Marketplace1. Problems
that your business can solve.
2. Changes
in laws, situations, trends.
3. Inventions
of totally new products or services
4. Competition
If you can find a way to beat the competition on price, location, quality, reputation, reliability, or speed, you can create a very successful business with an existing product or service.
5. Technological Advances
Scientists may invent new technology, but entrepreneurs figure out how to use and sell it. - 22FranchiseA business that markets a product or service developed by a franchisor, typically in the manner specified by the franchisor.
- 23AcquisitonThe purchase of a business
- 24Due DiligenceThe exercise of reasonable care in the evaluation of a business opportunity.
• The process used to learn about the business's true financial condition.
• The challenge is to complete an in-depth analysis of the opportunity - 25GazelleA company that achieves an annual growth rate of 20 percent or greater, typically measured by increase of sales revenue.
• Gazelles are financed by a combination of found resources plus significant outside assistance.
• They rely heavily upon external financial support and counsel. - 26MircoenterprisesA firm with five or fewer employees, initial capitalization requirements of under $35,000, and the consistent operational involvement of the owner.
- 27Lifestyle BusinessA microenterprise that permits its owners to follow a desired pattern of living, such as supporting college costs or taking vacations.
- 28ProfitAmount of money remaining from the revenue of a business after all costs are deducted.
- 29Trade-offThe act of giving up one thing or another
- 30—
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- User has deleted their subject information Flashcards on Entrepreneurship - Key Terms, created by Deleted user on 05/10/2016.
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- Deleted user · Oct 2016
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- Created by a deleted user · Jun 8, 2016
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