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.