Entrepreneurship Chapter 4

Benefit Corporation Accountability

: To have a fiduciary duty to consider the interests of workers, the community, and the environment.

Licensing

A business arrangement in which a manufacturer of a product (or a firm with proprietary rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product in return for specified royalties or other payments.

Ecovision

A leadership style that encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands.

Social Entrepreneurs

A person or small group of individuals who founds and/or leads an organization or initiative engaged in social entrepreneurship.

Corporate Social Responsibility

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

Social Entrepreneurship

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

International Alliances

Agreements between companies from two or more countries; not legally binding.

Triple Bottom Line (TBL)

An accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions.

Shared Value

An approach to creating economic value that also creates value for society by addressing its needs and challenges.

Social Entrepreneurs

Change agents who create large-scale change using pattern-breaking ideas to address the root causes of social problems.

Social Entrepreneurship

Combination of private-sector focus on innovation, risk-taking, and large-scale transformation with social problem solving.

Global Entrepreneurs

Confront the learning difficulties of language barriers head-on, recognizing the barriers such ignorance can generate.

The North American Free Trade Agreement (NAFTA)

Created the world's largest free trade area, linking 444 million people and producing $17 trillion in goods and services annually.

Social Entrepreneurs

Creative thinkers continuously striving for innovation in technologies, supply sources, distribution outlets, or methods of production.

Global Thinking

Entrepreneurs who expand into foreign markets think about how to design and adopt strategies for different countries.

Social Entrepreneurship

Entrepreneurship that is a form that exhibits characteristics of non-profits, governments, and businesses.

Ecopreneurship

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

The European Union (EU)

European Economic Community including 27 member states which are located primarily in Europe.

Sustainable Entrepreneurship

Focus on the preservation of nature, life support, and community.

Diaspora Networks

Global networks of relationships among ethnic groups that share cultural and social norms.

Global Entrepreneurs

Have a core language plus working knowledge of others.

Resource-Rich Countries

Have extractive assets The OPEC nations and many parts of Africa

Market-Rich Countries

Have large purchasing power Europe, Brazil, Mexico, India, China, and the United States

Labor-Rich Countries

Have vast pools of available labor Brazil, India, the Philippines, and select countries in South and Central America

Foreign Market Dangers

Ignorance and uncertainty Lack of experience Lack of information Imposed restrictions (demands and red tape)

Learning Curve Concept

Increased sales from exports will lead to greater efficiencies along the firm's cost curve, which in turn will lead to increased overall profits as the firm expands into overseas markets.

The North American Free Trade Agreement (NAFTA)

International agreement among Canada, Mexico, and the United States that eliminates trade barriers among the three nations.

Global Entrepreneurs

Opportunity-minded and open-minded global thinkers able to see different points of view and weld them into a unified focus.

Sustainable Entrepreneurship

Pursuing opportunities to bring into existence future products, processes, and services for gain, including economic and noneconomic gains to individuals, the economy, and society.

The Social Entrepreneurship Process

Recognition of a perceived social opportunity translated into an enterprise concept.

Global Entrepreneurs

Rise above nationalistic differences to see the big picture of global competition without abdicating their own nationalities.

Gradual Internationalization

Step-by-step progress toward internationalization as risk and commitment increase and entrepreneurs acquire more knowledge through experience.

Benefit Corporation Purpose

To create a material positive impact on society and the environment.

Benefit Corporation Transparency

To report annually to the public on overall social and environmental performance with a credible and transparent third-party standard.

Political Risk, Economic Risks, Social Risks, Financial Risks

Types of International Threats and Risks

Patents, Trademarks, Technical Know-How

Types of Licensing

World Trade Organization (WTO)

Umbrella organization that overseas and administers WTO trade agreements

Entering International Marketplace

conduct Research Prepare a feasibility study Secure adequate financing File the proper documents Draw up and implement the plan

Social Entrepreneurs

referred to as "public entrepreneurs," "civic entrepreneurs," or "social innovators."