BA 105 Chapter 1

independent small business

A business owned by an individual or small group.

Owner-managed firms

A business run by the individual who owns it.

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.

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.

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. Examples include Pakistan, Jamaica, and Venezuela.

Small Business Administration (SBA)

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

heir

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

serial entrepreneur

A person who opens multiple businesses throughout his or her career.

entrepreneur

A person who owns or starts an organization, such as a business.

self-efficacy

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

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.

virtual instant global entrepreneurship (VIGE)

A process that uses the Internet to quickly create businesses with a worldwide reach.

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.

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.

effectuation

An approach used to create alternatives in uncertain environments.

social ventures

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

importing

Buying products or services from a place not your home country, and selling them in your home country.

novelty

Characterized by being different or new.

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.

small business

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

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.

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.

founders

People who create or start new businesses.

Innovativeness

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

exporting

Taking products or services made in your home country and selling them in other countries.

crowdsourcing

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

perseverance

The behavior of continued effort to achieve a goal.

Independent Entrepreneurship

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

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.

Corporate Entrepreneurship

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

e-commerce

The general term for conducting business on the Internet.

CSI entrepreneurship

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

Small and medium-sized enterprise (SME)

The international term for a small business.

unicorns

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

forms of entrepreneurship

The settings in which the entrepreneurial effort takes place.

goods or services

The tangible things (goods) or intangible commodities (services) created for sale.

occupation

The type of activity a person does regularly for pay.

creative destruction

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

bootstrapping

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

entrepreneur

anyone who owns a business

buyers

people who purchase an existing business

self-employed

working for yourself

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.

Crowdfunding

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