Chapter 1

Owner-Managed Firms

A business run by the individual who owns it.

Traditional Small Business

A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.

Innovation-Driven Economy

A nation where the major forces for jobs, revenues, and taxes come from high-value added production based on new ideas and technologies and from professional services based on higher education.

Small Business Administration

A part of the U.S. government, which provides support and advocacy for small business.

Main Street Businesses

A popular term for small businesses reflecting the ides that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "Wall Street" businesses.

Franchise

A prepackaged business bought, rented, or leased from a company called a franchisor.

Small Business

Involves 1-50 people and has its owner managing the business on a day-to-day basis.

Focuses of Entrepreneurship

The key directions the organization intends to pursue.

Self-Employed

Working for yourself.

Independent Small Business

A business owned by an individual or a small group.

Factor-Driven Economy

A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining or oil production.

Virtual Instant Global Entrepreneurship

A process that uses the internet to quickly create businesses with a worldwide reach.

Lifestyle or Part-Time Firm

A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working.

CSI Entrepreneurship

Acronym for the three forms of entrepreneurship, corporate, social, and independent.

Effectuation

An approach used to create alternatives in uncertain environments.

Firm

An organization that sells to or trades with others.

Novelty

Characterized by being different or new.

Imitative

Characterized by being like or copying something that already exists.

Necessity-Driven Entrepreneurship

Creating a firm as an alternative to unemployment.

Opportunity-Driven Entrepreneurship

Creating a firm to improve one's income or a product or service.

Crowdfunding

Funding a business online through the collective involvement of others who provide donations, loans, or investments.

Overall Growth Strategy

One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.

Founders

People who create or start new businesses.

Serial Entrepreneurs

People who open multiple businesses throughout their career.

Buyers

People who purchase an existing business.

Innovativeness

Refers to how important a role new ideas, products, services, processes, or markets play in an organization.

Crowdsourcing

Techniques often based in internet-based services to get opinions or ideas through the collective involvement of others.

Flexibility Rewards

The ability of business owners to structure life in the way that suits their needs best.

Perseverance

The behavior of continued effort to achieve a goal.

Mindshare

The degree of attention your target market pays to your idea or organization.

Creation

The entrepreneurial focus which looks at the making of new entities.

Efficiency

The entrepreneurial focus which refers to doing the most work with the fewest resources.

Independent Entrepreneurship

The form of entrepreneurship in which a person or group own their own for-profit business.

Social Entrepreneurship

The form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities.

Corporate Entrepreneurship

The form of entrepreneurship which takes place in existing businesses around new products, services, or markets.

Ecommerce

The general term for conducting business on the internet.

Small and Medium Enterprise

The international term for small business.

Income Rewards

The money made by owning one's own business.

Forms of Entrepreneurship

The settings in which the entrepreneurial effort takes place.

Goods or Services

The tangible things (goods) or intangible commodities (services) created for sale.

Occupation

The type of activity a person does regularly for pay.

Creative Destruction

The way that newly created goods, services, or firms can hurt existing goods, services, or firms.

Bootstrapping

Using low-cost or free techniques to minimize your cost of doing business.

Growth Rewards

What people get from facing and beating challenges.

High-Performing Small Business

A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business.

Efficiency-Driven Economy

A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e. efficiency) is a major goal.

Heir

A person who becomes an owner through inheriting or being given a stake in a family business.

Entrepreneur

A person who owns or starts an organization, such as a business.

Self-Efficacy

A person's belief in his or her ability to achieve a goal.

High-Growth Venture

A firm started with the intent of eventually going public, following the pattern of growth ad operations of a big business.

Innovation

The entrepreneurial focus which looks at a new thing or a new way of doing things.

Customer-Focus

The entrepreneurial focus which refers to being in tune with one's market.