Entrepreneurial Small Business 5th Edition; Chapter 1

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.

Franchise

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

Green Entrepreneurship

Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields.

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.

Independent Small Business

A business owned by an individual or small group.

Owner-Managed Firm

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.

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.

High-Growth Venture

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

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.

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 (SBA)

A part of the United States government that provides support and advocacy for small businesses.

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.

Main Street Businesses

A popular term for small businesses reflecting the idea 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 business or "Wall Street" businesses.

Virtual Instant Global Entrepreneurship (VIGE)

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.

Corridor Principle

A theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities.

CSI Entrepreneurship

Acronym for the three forms of entrepreneurship: Corporate, Social, and Independent.

Sustainable Entrepreneurship

An approach to operating a firm or a line of business that identifies, creates, and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.

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, loan, or investments.

Small Business

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

Overall Growth Strategy

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

Founders

People who create or start new businesses.

Buyers

People who purchase an existing business.

Serial Entrepreneur

Person who opens multiple businesses throughout his or her career.

Innovativeness

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

Crownsourcing

Techniques often based in internet 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.

Preseverance

The behavior of continued effort to achieve a goal.

Mindshare

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

Innovation

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

Creation

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

Independent Entrepreneurship

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

Social Entrepreneurship

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

Corporate Entrepreneurship

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

E-Commerce

The general term for conducting business on the internet.

Small and Medium Enterprise (SME)

The international term for small businesses.

Four Focuses of Entrepreneurship

The key directions the organization intends to pursue. The four focuses are creation (of new entities), customers, efficiency, and innovation (new products, services, or processes).

Income Rewards

The money made by owning one's own business.

Unicorn

The most successful high-growth ventures, those with a valuation of $1 billion or more.

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 costs of doing business.

Growth Rewards

What people get from facing and beating challenges.

Self-Employed

Working for yourself.

Customer-Focus

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

Efficiency

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