Skip to main content
Library homepage
 
Loading table of contents menu...
Business LibreTexts

5.4: Key Terms

  • Page ID
    50780
    • Michael Laverty and Chris Littel et al.
    • OpenStax
    \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)

    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
    competitive advantage
    describes your venture’s unique benefits that poise it for growth
    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
    customers
    people the business will be serving, including potential customers from one or more market segments
    demand
    need or desire for the outputs, the product or services
    demographics
    statistical factors of a population or group, such as information about age, gender, income, race, or ethnicity
    entrepreneurial opportunity
    point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service and meets the following conditions: significant market demand, significant market structure and size, significant margins, and resources to support the venture’s success
    financial viability
    long-term financial sustainability of an organization to fulfill its mission
    gig economy
    market system in which independent contractors fill a variety of positions
    infrastructure
    all resources the entrepreneur will need in order to launch and sustain a business venture
    offering
    actual product or service, its value proposition, and how you will reach and communicate with your target customers
    opportunity screening
    process used to evaluate innovative product ideas, strategies, and marketing trends, focusing on financial resources, skills of the entrepreneurial team, and competition
    primary research
    research that involves gathering new data
    secondary research
    research that uses existing data
    shared economy
    economy in which some assets are not in use, which may present an entrepreneurial opportunity
    supply
    amount of a product or service produced
    SWOT analysis
    strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses, opportunities, and threats related to business competition
    unique selling proposition
    marketer’s rationale as to why a product or service is different/better than the competitor’s products

    This page titled 5.4: Key Terms is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by Michael Laverty and Chris Littel et al. (OpenStax) via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.