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