Entrepreneurship and Business Analysis Lecture Notes

Comprehensive practice vocabulary flashcards covering basic entrepreneurship concepts, strategic analysis tools (SWOT, PEST), SMEDA functions, and market fundamentals.

entreprendre

The French root of the term 'entrepreneurship,' meaning 'to undertake.'

Entrepreneurship

The process of identifying, creating, and pursuing opportunities to develop new products, services, or businesses.

Entrepreneurs

Individuals who possess the vision, risk-taking appetite, and determination to transform ideas into tangible ventures.

Industrial Revolution

A historical turning point where entrepreneurship became synonymous with innovation and economic progress.

Entrepreneurial Characteristics

A unique set of traits involving creativity, resilience, and a penchant for risk-taking.

Ideation

The first stage of the entrepreneurial journey, followed by opportunity recognition and strategic planning.

Venture Diversity

The range of entrepreneurial forms, from small startups to large-scale enterprises.

Entrepreneurial Skill Set

A diverse combination of leadership, financial acumen, and effective communication skills.

Innovation

The central driving force of entrepreneurship that addresses unmet market needs through novel ideas.

Resource Management

The ability to efficiently allocate finances, time, and human capital, especially during formative venture stages.

Economic Growth

A result of entrepreneurship achieved by fostering innovation, increasing productivity, and creating jobs.

Wealth Creation

An outcome of successful entrepreneurship that benefits the entrepreneur, stakeholders, investors, and the community.

SMEDA

The Small and Medium Enterprises Development Authority, established to facilitate the growth of SMEs.

Business Development Services

SMEDA offerings such as business planning, feasibility studies, and skill development programs.

Policy Advocacy

A function of SMEDA where it engages with policymakers to promote a favorable business environment for SMEs.

Access to Finance

SMEDA’s role in connecting SMEs with financial institutions and guiding them on securing funding.

Market Development

Supporting SMEs through market research, trade facilitation, and networking opportunities to expand reach.

Skill Enhancement

Training and capacity-building programs offered by SMEDA to empower entrepreneurs with operational knowledge.

SWOT Analysis

A strategic planning tool developed in the $1960\text{s}$ by Albert S. Humphrey at the Stanford Research Institute.

SOFT Analysis

The original name of the strategic planning method that later evolved into SWOT Analysis.

Strengths

Internal positive attributes and capabilities, such as a strong brand or skilled workforce, that provide a competitive advantage.

Weaknesses

Internal factors that hinder performance or put an entity at a disadvantage.

Opportunities

External factors that can be leveraged to an entity's advantage for growth and development.

Threats

External factors that pose challenges or risks to an entity and require risk management strategies.

PEST Analysis

A strategic tool analyzing Political, Economic, Social, and Technological factors, emerging in the $1960\text{s}$ and $1970\text{s}$.

ETPS

The initial acronym for PEST Analysis, standing for Economic, Technical, Political, and Social factors.

Political Factors

External influences including government stability, tax policies, trade regulations, and political ideologies.

Economic Factors

External influences such as inflation rates, exchange rates, interest rates, and unemployment rates.

Social Factors

Societal trends including demographic shifts, cultural attitudes, lifestyle choices, and education levels.

Technological Factors

External influences like research and development (R&D) capabilities, automation, and intellectual property protection.

Portfolio Business

A collection of diverse ventures managed by a single entity to achieve market exposure and risk mitigation.

Diversification

The intentional spreading of holdings across various industries or regions to reduce reliance on a single venture.

Synergy

Where the strengths of one business unit complement the weaknesses of another within a portfolio.

Active Portfolio Management

The regular assessment/adjustment of business units based on performance, market trends, and divestment options.

Exit Strategies

Well-defined plans for underperforming ventures, including divestment, mergers, or closures.

Lack of Funding

One of the biggest hurdles for startups, often relying on personal savings or friends and family.

Market

A physical or virtual place where people exchange goods and services.

Over-the-counter (OTC) markets

Markets where securities are traded directly between buyers and sellers rather than on an exchange.

Futures Markets

Markets for contracts obligating the trade of a commodity or financial instrument at a set price on a future date.

Supply and Demand

The market forces that interact to determine the price of a good or service.

Perfect Competition

A market structure with many buyers and sellers where no single firm has a significant market share.

Oligopoly

A market structure where a few firms control a large share of the market.

Monopolistic Competition

A market structure where many firms sell differentiated products.

Demographics

The study of human populations, including size, growth, distribution, and composition such as age or race.

Censuses

Large-scale surveys conducted by governments to collect data on an entire population.

FMCG

Fast-moving consumer goods; non-durable products sold quickly at a relatively low cost, such as food or toiletries.

Product Turnover

A characteristic of FMCGs referring to the speed and volume at which products are sold.

Warranty

A legally binding written contract by a manufacturer to repair or replace a defective product.

Guarantee

A general written or oral promise that something is true or will perform as expected, covering performance or satisfaction.

Antitrust laws

Regulations designed to prevent monopolies and oligopolies from abusing their market power.