Entrepreneurship 1

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  1. product
    something tangible that exist in nature or is made by human beings
  2. service
    intangible work that provides time, skill, or expertise in exchange for money
  3. entrepreneur
    a person who organizes and manages a business assuming the risk for the sake of potential return
  4. economic questions
    what, when, how, who, for whom
  5. free enterprise system
    economic system in which businesses are privately owned and operate relatively free of government interference
  6. capitalism
    free market system with competition, private ownership, and free-market prices
  7. captital
    cash or goods invested to generate income and wealth
  8. voluntary exchange
    transaction between two parties who agree to trade money for a product or service
  9. why be an entrepreneur?
    • control over time
    • fulfillment
    • creation/ownership
    • control over compensation
    • control over working conditions
  10. benefits of being and entrepreneur:
    • independence
    • satisfaction
    • financial reward
    • self--esteem
    • contribution to society
  11. cost of being an entrepreneur:
    • business failure
    • obstacles
    • loneliness
    • financial insecurity
    • long hours/hard work
    • strain on personal relationships
  12. opportunity cost
    the value of what must be given up in order to obtain something else
  13. two good resources:
    mentors and advisors
  14. social entrepreneurship
    a for-profit enterprise that has dual goals of profability and social returns
  15. venture philanthropy
    subset of social entrepreneurship where financial and himan capital is invested in not-profits by indivduals and for-profit enterprises for social gain rather than financial
  16. green entrepreneurship
    • enterprise activities that avoid harm to the environment or help to protect in some way:
    • create jobs
    • increase energy efficiency
    • decrease harm to workers health
    • preserve limited natural assets
  17. Schumpter's definition:
    • new tech - new product
    • old tech - new product
    • old tech - old product new way
    • new source of resources
    • new market - old product
  18. five roots of opportunity
    • problems to solve
    • changes in laws situations or trends
    • inventions of new products or services
    • competition to beat
    • tech advantages to take advantage of
  19. strategy
    a plan for how an organization or individual plans to go about its own performance and outdo that of its competitors
  20. gazelle
    a company that achievs an annual growth rate of 20 percent or greater, typically by sales revenue
  21. microenterprise
    firm with five or fewer employees, initial capitalization requirements uder 35000, regular operational involvement of owner
  22. lifestyle business
    micro that permits its owners to follow a desired plan of living
  23. seven rules for successful business
    • recognize opportunity
    • evaluate critically
    • build a team
    • write plan
    • gather resources
    • decide ownership
    • create wealth
  24. explain what entrepreneurs do
    • start business and work for themselves
    • recognize opportunity
    • add value to scarce resources
  25. explain free enterprise and entrepreneurs
    free enterprise encourages entrepreneurs who use resources efficiently to satisfy customer needs by rewarding them with profit
  26. a business opportunity is an idea plus these three characteristics
    • attractive
    • will work in business environment
    • can be executed within window of opportunity (first mover advantage)
  27. use SWOT analysis to evaluate a business opportunity
    • strengths
    • weaknesses
    • opportunities
    • threats
  28. discontinuous innovation
    ends old with a new product or service
Card Set:
Entrepreneurship 1
2011-09-17 23:36:58

Chapter 1
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