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2.5: Key Terms

  • Page ID
    50753
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    action plan
    organized, step-by-step outline or guide that pulls together the ideas, thoughts, and key steps necessary to help set the stage for entrepreneurial success
    benchmarking
    comparing one’s own company’s performance with an industry average, a leader within the industry, or a market segment
    bootstrapping
    funding strategy that seeks to optimize use of personal funds and other creative strategies (such as bartering) to minimize cash outflows
    breakeven point
    level of operations that results in exactly enough revenue to cover costs
    business model
    plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process
    capitalism
    system in which individuals, people, and companies have the freedom to make decisions and own property as well as benefit from their own efforts, with government playing a secondary role in oversight
    cash flow
    money collected by the business through revenue and funding versus money disbursed by the business through expenses
    cash management
    management of cash inflows and outflows to support cash needs of the venture
    corporate entrepreneurship
    development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporation’s strategy and goals
    creative destruction
    theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment
    due diligence
    conducting the necessary research and investigation to make informed decisions that minimize risk
    e-commerce
    electronic transactions, particularly over the Internet, for the exchange of goods and services
    entrepreneurial journey
    your exploration to discover if entrepreneurship is right for you
    entrepreneurial process
    set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture
    entrepreneurial spirit
    describes a quality of those individuals who are productive self-starters focused on making changes happen
    entrepreneurial venture
    any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not previously been established
    framework
    structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation and validation, and brainstorming
    franchising
    form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
    independent contractor
    (also, freelancer) people or businesses that provide work similar to an employee without being part of the payroll for the contracting business, and who pay their own taxes and pay for their own benefits
    innovation
    new idea, process, or product, or a change to an existing product or process
    intrapreneur
    employee who acts as an entrepreneur within an organization, rather than going solo
    milestone
    significant decision point or significant accomplishment
    patent
    legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period
    serial entrepreneur
    entrepreneur who becomes involved in starting multiple entrepreneurial ventures
    situational opportunity
    one that becomes available, depending on factors such as where you work, your family obligations, your idea or invention, your unique creative expression, or a recent career search or job change
    soft launch
    (also, soft open) launching a venture for a limited time frame or audience to gain experience, insights, and feedback about the target market or consumer
    target market
    specific group of consumers for which a company seeks to provide a good or service
    venture
    startup company or organization that conducts business or is created to satisfy a need
    vertical integration
    strategy of gaining control over suppliers of raw materials and distributors of finished products to expand or control the relevant supply chain

    2.5: Key Terms is shared under a CC BY license and was authored, remixed, and/or curated by LibreTexts.

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