Entrepreneurship Exam 1

Entrepreneurial Ecosystem

A configuration of the environment that reflects the components that are more focused to developing a strong and active community of start up businesses

SCAMPER

A creativity tool that provides cues to trigger new ideas for your business

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

License

A legal agreement granting you rights to use a particular piece of intellectual property

Efficiency Driven Economy

A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity 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

General Environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Task Environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media

Heir

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

Franchise

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

Entrepreneurial Alertness

A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities

Imitative Strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing

Legitimacy

Belief that a firm is worthy of consideration or doing business with because of impressions or opinions of customers, suppliers, investors, competitors

Social Capital

Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur

Organizational Identity

Composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories

Social Network

Entrepreneurs set of relationships and contacts with individuals and institutions

Social Entrepreneurship

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

Competencies

Forms of business-related expertise

Small Business

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

Royalty

Payment based on the number or value of licensed items sold

Second Career Entrepreneurs

People who begin their businesses after having left, retired, or resigned from work. These can include veterans of the armed forces and civilians from a broad range of industries

Founders

People who create or start new businesses

Radical Innovation Strategy

Rejecting existing ideas, and presenting a way to do things differently

Determination Competencies

Skills identified with the energy and focus needed to bring a business into existence

Opportunity Competencies

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

Incremental Strategy

Taking an idea and offering a way to do something slightly better than it is done presently

Resource Competencies

The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise

Feasibility

The extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

External Environment

The forces, institutions and people outside the boundary of the firm

Corporate Entrepreneurship

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

Role Conflict

The kind of problem that arises when people have multiple responsibilities, such as a parent and boss, and the different responsibilities make different demands on them

Time Management

The organizing process to help make the most efficient use of the day

Internal Environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

Succession

The process of intergenerational transfer of a business

Basic Business Competency

Understanding the organizational and business processes of a firm

Bootstrapping

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