FBLA Entrepreneurship
Skunk Works
a project developed by a small and loosely structured group of people who research and develop a project primarily for the sake of radical innovation
appositional relationship
a relationship among things and people existing
strategic formulation school of thought
emphasizes the planning process in successful venture development
entrepreneurial behavior
entrepreneur's decision to initiate the new venture formation process
collective entrepreneurship
entrepreneurial thinking that is diffused throughout the company
incremental innovation
a series of small improvements or upgrades made to a company's existing products, services, processes or methods; usually focused on improving an existing product's development efficiency, productivity and competitive differentiation
ethics
a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong
lifestyle venture
a small venture in which the primary driving forces include independence, autonomy, and control
comprehensive feasibility approach
a systematic analysis incorporating external factors
ecopreneurship
environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment
micro view of entrepreneurship
examines the factors specific to entrepreneurship and part of the internal locus of control
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 non economic gains to individuals, the economy and society
entrepreneurial trait school of thought
focuses on identifying traits common to successful entrepreneurs (achievement, creativity, determination, and technical knowledge)
venture opportunity school of thought
focuses on the opportunity aspect of venture development—the search for idea sources, the development of concepts, and the implementation of venture opportunities
stress
function of discrepancies between a person's expectations and ability to meet demands, as well as discrepancies between the individual's expectations and personality. if a person is unable to fulfill role demands then this occurs
customer availability
having customers available before a venture starts
mountain gap strategies
identifying major market segments as well as in between markets that arise from larger markets
critical factors
important new-venture assessments
political risks
include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences
better widget strategies
innovation that encompasses new or existing markets
radival innovation
innovation that has a significant impact on a market and on the economic activity of firms in that market; ex: change the structure of the market, create new markets or render existing products obsolete
North American Free Trade Agreement (NAFTA)
international agreement eliminating trade barriers between Canada, Mexico and USA (NAFTA)
entrepreneurial revolution
-symbol of business tenacity and achievement -entrepreneurs are the pioneers of today's business successes
internal problems
involve adequate capital, cash flow, facilities/equipment, inventory control, human resources, leadership, organizational structure, and accounting systems
grief recovery
involves focusing on the particular loss to construct an account that explains why the loss occurred
risk
involves uncertain outcomes/events. the higher the reward, the greater the risk entrepreneurs usually face
ecovision
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
b-corporation
legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders; standards enable consumers to support businesses that align with their values
financial risk
money or resources at stake for a new venture
benefit corporation
more sustainable than traditional corporations, except with purpose, accountability, and transparency
right brain
part of the brain that helps an individual understand analogies, imagine things, and synthesize information
either/or thinking
people often get bogged down with striving for an unreasonable amount of certainty in their lives. but the creative person learns to accept a reasonable amount of ambiguity in his or her work and life
external locus of control
point of view in which external processes are sometimes beyond the control of the entrepreneur
corporate entrepreneurship
process used to develop new businesses, products, services or processes inside of an existing organization to create value and generate new revenue growth through entrepreneurial thought and action
stereotyping
refers to averages that people fabricate and then, ironically, base decisions on as if they were entities existing in the real world
external problems
related to the customer contact, market knowledge, marketing planning, location, pricing, product considerations, competitors, and expansion
diaspora networks
relationships among ethnic groups that share cultural and social norms
probability thinking
relying on probability to make decisions in the struggle to achieve security
innovation (I) team
role of the team is to conceive, champion, and carefully develop a new approach that has not been tried by your organization before
environmental school of thought
school of thought that focuses on the external factors and forces- values, morals, institutions- that surround a potential entrepreneur's lifestyle
financial/capital school of thought
school of thought that focuses on the ways entrepreneurs seek seed capital and growth funds
exporting
shipping of domestically produced goods to a foreign destination for consumption; it is important for entrepreneurs because it often means increased market potential
great chef strategies
skills or special talents of one or more individuals around whom a venture is built
intrapreneur
someone within a company that takes risks in an effort to solve a given problem, should have more directly applicable skills for a given task
family and social risk
starting a new venture uses much of the entrepreneur's energy and time. entrepreneurs with families expose them to the risks of an incomplete family experience and the possibility of permanent emotional scars. friends may also vanish slowly
code of conduct
statement of ethical practices or guidelines to which an enterprise adheres
corridor principle
states that with every venture launched, new and unintended opportunities arise
dynamic states approach
stresses dependency of venture on environment and the interaction of: -the dominant logic of the firm -the business model -value creation
water well strategies
the ability to gather special resources (land, labor, capital, raw materials) over long term
opportunity identification
the ability to recognize a viable business opportunity within a variety of good ideas
product availability
the availability of a salable good or service at the time the venture opens its doors
top management support
the degree to which senior management understands the importance of the IS function and the extent to which it is involved in IS activities
entrepreneurial management
the discipline of entrepreneurial management: -based upon the same principles no matter who or what the entrepreneur is
creative process
the four phases of creative development: background or knowledge accumulation, incubation process, idea experience, and evaluation or implementation
creativity
the generation of ideas that results in the improvement in the efficiency or effectiveness of a system
psychic risk
the great psychological impact on and the well-being of the entrepreneur who creates a new venture
growth of sales
the growth pattern anticipated for new-venture sales and profits
corporate venturing
the investment of corporate funds directly in external startup companies
entrepreneurial experience
the knowledge that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth
left brain
the part of the brain that helps an individual analyze, verbalize, and use rational approaches to problem solving
innovation
the process by which entrepreneurs convert opportunities into marketable ideas
growth stage
the third stage of a new venture life cycle, typically involving activities related to reformulating strategy in the light of competition
learning curve
the time needed for new methods or procedures to be learned and mastered
World Trade Organization (WTO)
the umbrella organization governing the international trading system. Its job is to oversee international trade arrangements, but, contrary to popular belief, it does not replace the General Agreement on Tariffs and Trade (WTO)
entrepreneurial motivation
the willingness of an entrepreneur to sustain his or her entrepreneurial venture
shared value
transformation of business thinking recognizing societal weaknesses that create internal costs for firms
role failure
unethical acts against the firm involving a person failing to perform his or her managerial role, including superficial performance appraisals and not confronting someone who is cheating one expense accounts
role distortion
unethical acts committed on the basis that they are "for the firm" even though they are not, and involving managers/entrepreneurs who commit individual acts and rationalize that they are in the firm's long-run interests
role assertion
unethical acts involving managers/entrepreneurs who represent the firm and who rationalize that they are in a position to help the firm's long-run interests
functional perspective
viewing things and people in terms of how they can be used to satisfy one's needs and to help complete a project
internal locus of control
viewpoint where the potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence
rationalizations
what managers use to justify the questionable conduct
muddling mind-sets
when creative thinking is blocked or impeded
high-growth venture
when sales and profit growth are expected to be significant enough to attract venture capital money and funds raised through public or private placements
incongruities
whenever a gap or difference exists between expectations and reality
career risk
whether an entrepreneur will be able to find a job or go back to an old job if a venture fails
European Union (EU)
economic and political union of 27 member states which are located primarily in Europe
invention
a basic type of innovation that involves the creation of a new product, service, or process that is often novel or untried
duplication
a basic type of innovation that involves the replication of an already existing product, service, or process
licensing
a business arrangement in which the manufacturer of a product grants permission to a group or individual to manufacture that product in return for specified royalties or other payment
gazelle
a business establishment with at least 20% salesgrowth in each year for five years, starting with a base of at least $100,000 in annual sales -produce 2x as many product innovations per employee as larger firms -obtain more patents per sales dollar than larger firms
joint venture
a cooperative enterprises entered into by two or more business entities for the purpose of a specific project or other business activity- any two businesses of any size can work together on a joint project, while still maintaining the rest of their business apart from each other
feasibility criteria approach
a criteria selection list from which entrepreneurs can gain insights into the viability of their venture
social entrepreneurship
a new form of entrepreneurship that exhibits characteristics of nonprofits, government, and businesses; applies to traditional entrepreneurship's focus on innovation, risk taking, and large-scale transformation to social problem solving
displacement school of thought
alienation drives entrepreneurial pursuits (political displacement, cultural displacement, economic displacement)
entrepreneurial mind-set
all of the characteristics and elements that compose the entrepreneurial potential in every individual
triple bottom line
an accounting framework that goes beyond the traditional measures for profit, return on investment, and shareholder value to include environmental and social dimensions
global entrepreneurs
an entrepreneur who relies on global networks for resources, design, and distribution
entrepreneurial persistence
an entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counter influences or other enticing alternatives
Corporate Entrepreneurship Assessment Instrument (CEAI)
an instrument that attempts to measure the effectiveness of the key internal organizational factors, or climate, that influence innovative activities and behaviors
international alliances
another alternative for the entrepreneur in the international arena; alliance types: informal international cooperative, formal international cooperatives, and international joint ventures
marketability
assembling and analyzing relevant information about a new venture to judge its potential success
failure prediction model
based on financial data from newly founded ventures; assumes the financial failure process is characterized by too much initial indebtedness and too little revenue financing
synthesis
basic type of innovation that involves combining existing concepts and factors into a new formulation
extension
basic type of innovation that involves extending the life of a product, service, or process already in existence
macro view of entrepreneurship
broad array of factors that relate to success or failure in contemporary entrepreneurial ventures
importing
buying and shipping foreign-produced goods for domestic consumption
social value
contribution to the welfare or well-being in a given community
market-rich countries
countries have something that others need, thus forming the basis of an interdependent international trade system
resource-rich countries
countries have something that others need, thus forming the basis of an interdependent international trade system