Entrepreneurship Chapter 1

Independent Small Business

A business owned by an individual or small group.

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.

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.

crowdfunding

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

Owner-managed firm

A business run by the individual who owns it.

Opportunity-driven entrepreneurship

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

Drop-Shipping

A business in which you sell items in person or online, but you hold no inventory. You refer sales to a third party who handles the shipping, and very often the financial transaction, in your name.

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.

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.

Crowdsourcing

Techniques often based on Internet services to get opinions or ideas through the collective involvement of others.

Independent entrepreneurship

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

Corporate Entrepreneurship

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

Small Business

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

Effectuation

An approach used to create alternatives in uncertain environments

Firm

An organization that sells to or trades with others.

necessity-driven entrepreneurship

Creating a firm as an alternative to unemployment.

Services

Intangible commodities (services)

P2P Lending

Loans made from one or more individuals to the entrepreneur, rather than through a conventional bank. This can be as simple as a loan to a friend, or formally handled through a dedicated P2P website.

An entrepreneur's _______ depends on the type of goods or services they, and their firm, are producing.

Occupation

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.

Innovativeness

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

Goods

Tangible things goods

Unicorns

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

creative destruction

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

Occupation

Type of activity a person does regularly for pay.

Self-efficacy

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

Novelty

characterized by being different or new

Imitative

characterized by being like or copying something that already exists

Entrepreneurial businesses show _____ in their products, services, or business models, while small businesses are ______

novelty, imitative

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.

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.

social entrepreneurship

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

Boot-Strapping

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

Small Business Administration

A part of the U.S. government that provides support and advocacy for small businesses.

Serial Entrepreneur

A person who opens multiple businesses throughout their career.

Entrepreneur

A person who owns or starts an organization.

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.

Franchise

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

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.

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.

Social Ventures

Businesses that are organized as for-profit entities but are also solving or supporting solutions to social problems

CSI entrepreneurship

The identification of three settings in which entrepreneurship can be pursued, corporate settings, social (charitable) settings, and independent settings.