Entrepreneurship Chapter 4

What are some key steps in the environmental movement?

1) Eliminate the concept of waste 2) Restore accountability 3) Make prices reflect costs 4) Promote diversity 5) Make conservation profitable 6) insist on accountability of nations

What are seven characteristics of successful global start ups?

1) global vision from inception 2) internationally experienced management 3) a strong international business network 4) preemptive technology or marketing 5) unique intangible asset 6) linked product or service 7) tight orgnaizational coordination worldwide

What are b corporations?

A legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders Performance standards enable consumers to support businesses that align with their values

How do you define the social entrepreneur? (public entrepreneur, civic entrepreneur, social innovators)

Adoption of a mission to create and sustain social value (beyond personal value) Recognition and relentless pursuit of opportunities for social value Engagement in continuous innovation and learning Action beyond the limited resources at hand Heightened sense of accountability

What is a triple bottom line?

An accounting framework that goes beyond the traditional measures of profit, ROI, and shareholder value to include environmental and social dimensions By focusing on comprehensive investment results-with respect to performance along the interrelated dimensions of profits, people, and the planet important tool to support sustainability goals

What are international alliances? Types?

Another alternative available to the entre. in the international arena Informal International cooperative alliances: -limited in scope and time -easy and convenient for either side Formal international cooperative alliances: -deeper involvement; exchange of proprietary knowledge -more difficult to dissolve due to legal obligations and commitment international joint ventures: -deep involvement, require exchange of financial info, proprietary knowledge -most difficult to dissolve due to the sign. investment of both companies

What is importing?

Buying and shipping foreign produced good for domestic consumption

How does bottom line measure economic performance?

Economic measures deal with the bottom line and income flows such as income, expenditures, taxes, business climate factors, employment, and business diversity factors ex) personal income, cost of underemployment, establishment sizes, job growth, employment distribution by sector

What does sustainable entrepreneurship include?

Ecopreneurship Social entrepreneurship Corporate social responsibility

What is social entrepreneurship?

Encompasses the activities and processes undertaken to discover, define, and exploit opportunities in order to enhance social wealth by creating new ventures or managing existing organizations in an innovative manner

How does bottom line measure environmental performance?

Environmental measures are related to natural resources and reflect potential influences to its viability Long range trends for environmental variables help organizations identify the impacts a project or policy would have on the area ex) hazardous chemical concentrations, electricity consumption, fossil fuel consumption, etc

What is sustainable entrepreneurship?

Focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and noneconomic gains to individuals, the economy, and society

What does the social entrepreneur aim to do?

Increase social value: -to contribute to the welfare or well being in a given community

What are global entrepreneurs?

Opportunity-minded and open-minded, able to see different points of view and weld them into a unified focus Rise above nationalistic differences to see the big picture of global competition without abdicating their own nationalities Confront learning difficulties of language barriers hed on and recognize the barriers such ignorance can generate

What is green capitalism?

Refers to a concept of ecologically sustainable development being transformed into ecologically sustainable development

What is corporate social responsibility?

Refers to actions that appear to further some social good, beyond the interests of the firm and that which is required by law and often denotes societal engagement of organizations

What is the learning curve concept?

The time needed for new methods or procedures to be learned and mastered -increased sales will lead to greater effeciencies along the cost curve, leading to increased profits

What is ecovision?

To describe a possible leadership style for innovative organizations encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands

What is global thinking?

Todays consumers can select products, ideas, and services from many nations and cultures Entre. who expand into foreign markets must be global thinkers in order to design and adopt strategies for different countries Two of the primary reasons for emerging opportunity are the decline in trade barriers and emergence of major trading blocs that have been brought by NAFTA

What is the World Trade Organization?

WTO: -umbrella organization governing the international trading system -job is to oversee international trade arrangements but does not replace GATT

What is social entrepreneurship?

a form of entrepreneurship that exhibits characteristics of nonprofits, governments, and businesses, combining private-sector focus on innovation, risk taking, and large-scale transformation with social problem solving

What is the European Union (EU)?

economic and political union of 27 member states located in europe

What is ecopreneurship?

environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems

What is the benefit corporation? elements?

exactly the same as traditional corporations except for a few specific elemtns that make them more socially sustainable enterprises: 1) purpose: -to create a material positive impact on society and the environment 2) accountability: - to have a fiduciary duty to consider the interests of workers, the community, and the environment 3) transparency: -to report annually to the public on overall social and environmental performance with a credible and transparent third-party standard

What is the North American Free Trade Agreement (NAFTA)?

international agreement among Canada, Mexico, and US that eliminates trade barriers among three nations created worls largest free trade area, linking 444 million people and producing $17 trillion in goods and services Reduces cost of trade, spurs investment and growth for business New opportunities arise

What is a shared value?

it is a transformation of business thinking recognizing societal weaknesses that create internal costs for firms (wasted energy, accidents, inadequacies in education)

What are joint ventures and the advantages? disadv.?

more traditional self-standing legal entity -occurs when two or more firms analyze the benefits of creating a relationship; pool resources, and create new entity to undertake productive economic activity Advantage; -firm would be able to gain intimate knowledge of local conditions and gov -each participant would be able to use the resources of the other firms involved -both overall risk and capital outlay would be lower than firm alone Dis: -

What is social impact investing?

raising funds for socially motivated causes -it has started to bring opportunities to harness entrepreneurial ideas and capital markets to finance social initiatives Increasing the funding capability of social entrepreneurship will increase likelihood of more efficient, sustainable, and effective social initiatives

What are diaspora networks? Advantages?

relationships among ethnic groups that share cultural and social norms powerful as vehicles for communication and trust Advantages: -speed the flow of info across borders -create bond of trust -create connections that help entre. collab within a country and across ethnicities hyper connectivity : collaborate instantaneously

What is exporting?

shipping of a domestically produced good to a foreign destination for consumption

How does bottom line measure social performance?

social measures refer to social dimensions of a community or region such as education, social resources, health and well being, and quality of life ex) unemployment rate, median household income, relative poverty, average commute time

What is gradual internationalization?

the outcome of a sequential process of incremental adjustments to changing conditions of the firm and its environment step by step as risk and commitment increase and entre. acquire more knowledge through experience

how are social entrepreneurs change agents?

they create large scale change using pattern-breaking ideas address the root causes of social problems possess ambition to create systemic change by introducing a new idea and persuading others to adopt it