Entrepreneurship Chapter 1
Intention
A desire to start a 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 is a major goal.
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.
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.
Heir
A person who becomes an owner through inheriting or being given a stake in a family business.
Entrepreneur
A person who engages in entrepreneurial activities. The key is new value creation.
Franchise
A prepackaged business bought, rented or leased from a company called a franchisor.
Family-Owned Ventures
A venture founded, owned and/ or controlled by a family.
Flexibility Rewards
Ability of business owners to structure life in the way that suits their needs.
Entrepreneurial Firm
Bring new products or services to the market, high growth, aggressive, proactive, innovative, etc.
Novelty
Characterized by being different or new. Truly entrepreneurial.
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.
Boundary
Creating a place for your business-- in location and in people's minds.
Corporate Entrepreneurship
Entrepreneurship at the organization level.
Independent Entrepreneurship
Form of entrepreneurship in which a person or group own their own for-profit venture.
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.
Income Rewards
Money made by owning one's own business.
Exchange
Moving resources/ products/ services in exchange for money.
Serial Entrepreneurs
People who open multiple businesses throughout their career.
Buyers
People who purchase an existing business.
Entrepreneurial Firms
Proactive, innovative, risk averse.
Salary-Substitute Firm
Provides income similar to that from a conventional job.
Lifestyle Firm
Provides opportunity to pursue a particular type of lifestyle while making a living.
Innovativeness
Refers to how important a role new ideas, products, services, processes or markets play in an organization. Creating something new, novel and useful.
Conservative Firms
Take a 'wait to see' posture, less innovative, risk adverse.
Resources
The money, product, knowledge, etc. that make up the business.
Innovation
The process of creating something new, which is central to the entrepreneurial process.
Entrepreneurship
The process of identifying, evaluating, and exploiting opportunities through new means, new ends, or new means-ends relationships. NOT just starting a business.
Creative Destruction
The way that newly created goods, services, or firms can hurt existing goods, services or firms.
Growth Rewards
What people get from facing and beating challenges.