10.6: Key Terms
- Page ID
- 50684
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- born global
- venture seeking to be a global company from its inception
- build-measure-learn loop
- step-by-step approach on how to maneuver a startup, how to change course if necessary, how to persevere, and how to accelerate the expansion of a business
- business failure
- ending a business due to the lack of goal attainment, which can include low levels of revenue and profit, or not meeting investors’ expectations
- business lifecycle
- stages companies go through: birth, growth (or expansion to new markets and products), maturity, decline, death or rebirth
- early adopters
- people who like to try new things and can be found at the onset of the adoption process for a product
- franchising
- form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
- Global Entrepreneurship Monitor (GEM)
- organization that researches entrepreneurship around the world
- innovation accounting
- assesses whether the changes made to the product are creating the desired results
- iterations
- small changes to the current version of a product to make it better fit consumer needs
- joint venture
- temporary partnership in which two different enterprises combine for the purpose of mutual benefits such as sharing of expenses and to work toward shared goals and the associated potential revenue
- lean pitch
- verbal delivery of an idea or business plan as a request to a group of investors by an entrepreneur
- lean plan
- brief business plan shown to potential investors and employees that is a fast and effective way to set, manage, and evaluate goals and strategies in a business
- lean startup
- methodology entrepreneurs use this method to help them innovate by continuously testing their products and getting feedback from customers in real time
- licensing
- contract in which one enterprise gives permission to another entity to manufacture and sell its products for a royalty
- mergers and acquisitions
- when two companies combine, or one buys the majority stake of the other
- minimum viable product (MVP)
- early version or prototype of a product that may not be polished or complete but that functions well enough that you can begin to market it or test it with potential users
- pivoting
- crucial change done to test a hypothesis regarding the basic product, its growth potential, and business model; if something is not working, then a change or a “pivot” needs to take place
- strategic alliance
- arrangement created by two entities to work on a project by sharing some of their strengths and resources, but not actually creating a new entity as in the case of a joint venture