ENTR: chap 4-6 vocab & questions

B corporation

A legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders. B corporations' performance standards enable consumers to support businesses that align with their values.

benefit corporation

It is exactly the same as traditional corporations except for a few specific elements that make them more socially sustainable enterprises: purpose, accountability, transparency.

diaspora networks

They are relationships among ethnic groups that share cultural and social norms.

ecopreneurship

Environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems.

ecovision

Leadership style for innovative organizations. Encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands.

European Union (EU)

The EU is an economic and political union of 27 member states which are located primarily in Europe.

exporting

It is the shipping of a domestically produced good to a foreign destination for consumption. Exporting is important for entrepreneurs because it often means increased market potential.

global entrepreneurs

An entrepreneur who relies on global (international) networks for resources, design, and distribution.

importing

It is buying and shipping foreign-produced goods for domestic consumption.

international alliances

Another alternative available to the entrepreneur in the international arena. There are three main types of these strategic alliances: informal international cooperative alliances, formal international cooperative alliances (ICAs), and international joint ventures.

joint venture

Occurs when two or more firms analyze the benefits of creating a relationship, pool their resources, and create a new entity to undertake productive economic activity.

learning curve concept

The time needed for new methods or procedures to be learned and mastered.

licensing

A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over technology or trademarks) grants permission to a group or an individual to manufacture that product in return for specified royalties or other payments.

market-rich countries

Countries have something that others need, thus forming the basis of an interdependent international trade system.

North American Free Trade Agreement (NAFTA)

An international agreement among Canada, Mexico, and the United States that eliminates trade barriers among the three nations.

political risks

They include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences.

resource-rich countries

Countries have something that others need, thus forming the basis of an interdependent international trade system.

shared value

It is a transformation of business thinking, recognizing societal weaknesses that create internal costs for firms (e.g., wasted energy, accidents, inadequacies in education).

social entrepreneurship

A new form of entrepreneurship that exhibits characteristics of nonprofits, government, and businesses; it applies traditional (private sector) entrepreneurship's focus on innovation, risk-taking, and large-scale transformation to social problem solving.

social impact investing

Raising funds for socially motivated causes.

social value

Contribution to the welfare or well-being of a given community.

sustainable entrepreneurship

It focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and non-economic gains to individuals, the economy, and society.

triple bottom line (TBL)

An accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions.

World Trade Organization (WTO)

The umbrella organization governing the international trading system. Its job is to oversee international trade arrangements, but, contrary to popular belief, the WTO does not replace the General Agreement on Tariffs and Trade (GATT).

appositional relationship

A relationship among things and people existing in the world in relation to other things and other people.

creative process

The four phases of creative development: background or knowledge accumulation, incubation process, idea experience, and evaluation or implementation.

creativity

The generation of ideas that results in an improvement in the efficiency or effectiveness of a system.

duplication

A basic type of innovation that involves the replication of an already existing product, service, or process.

either/or thinking

People often get bogged down with striving for an unreasonable amount of certainty in their lives. But the creative person learns to accept a reasonable amount of ambiguity in his or her work and life.

extension

A basic type of innovation that involves extending the life of a product, service, or process already in existence.

functional perspective

Viewing things and people in terms of how they can be used to satisfy one's needs and to help complete a project.

incongruities

Whenever a gap or difference exists between expectations and reality.

innovation

The process by which entrepreneurs convert opportunities into marketable ideas.

invention

A basic type of innovation that involves the creation of a new product, service, or process that is often novel or untried.

left brain

The part of the brain that helps an individual analyze, verbalize, and use rational approaches to problem-solving. (See also Right brain.)

muddling mind-sets

When creative thinking is blocked or impeded.

opportunity identification

The ability to recognize a viable business opportunity within a variety of good ideas.

probability thinking

Relying on probability to make decisions in the struggle to achieve security.

right brain

The part of the brain that helps an individual understand analogies, imagine things, and synthesize information. (See also Left brain.)

security hunting

A common mental habit that inhibits creativity and innovation by hindering creative thought processes.

stereotyping

Refers to averages that people fabricate and then, ironically, base decisions on as if they were entities existing in the real world.

synthesis

A basic type of innovation that involves combining existing concepts and factors into a new formulation.

The phase of the creative process when the idea or solution the individual is seeking is discovered is the

Idea experience

Overnight package delivery is illustrative of which source of innovation?

Incongruities

The incubation process involves which of the following?

Letting the subconscious work

Which of the following mental habits inhibits creativity and innovation?

Either/or thinking, stereotyping

Logical and analytical skills are developed in the

Left hemisphere of the brain

Looking for different or unorthodox relationships among elements and people is one way to develop creativity. How might a person develop this capacity?

By perceiving in a relational mode

Which of the following are sources of innovation?

Unexpected occurrences and incongruities

comprehensive feasibility approach

A systematic analysis incorporating external factors.

conformance

A new venture does not question, change, or violate the social structure but rather "follows the rules."

creation

A new social context developed by an entrepreneur with new rules, norms, values, scripts beliefs, or models.

critical factors

Important new-venture assessments.

customer availability

Having customers available before a venture starts.

external problems

Related to customer contact, market knowledge, marketing planning, location, pricing, product considerations, competitors, and expansion.

design-centered entrepreneurship

In essence, the entrepreneur applies design methods in four action stages of developing an opportunity: Ideation, market engagement, and business model.

design methodology

Takes an initial concept idea and develops a proof of concept that elicits feedback from relevant stakeholders.

failure prediction model

Based on financial data from newly founded ventures; assumes the financial failure process is characterized by too much initial indebtedness and too little revenue financing.

feasibility criteria approach

A criteria selection list from which entrepreneurs can gain insights into the viability of their venture.

growth of sales

The growth pattern anticipated for new-venture sales and profits.

growth stage

The third stage of a new venture life cycle, typically involving activities related to reformulating strategy in the light of competition.

high-growth venture

When sales and profit growth are expected to be significant enough to attract venture capital money and funds raised through public or private placements.

institutional logics

Socially constructed, historical patterns of practices, assumptions, values, beliefs, and rules by which individuals provide meaning

internal problems

Involve adequate capital, cash flow, facilities/equipment, inventory control, human resources, leadership, organizational structure, and accounting systems.

Lean Start-Up methodology

Provides a scientific approach to creating early venture concepts and delivers a desired product to customers' hands faster. It is hypothesis-driven and entrepreneurs must work to gather and incorporate customer feedback early and often.

legitimacy

A resource that enables new ventures to overcome the "liability of newness," allowing for the acquisition of other resources such as financial capital, human resources, and strategic relationships.

lifestyle ventures

A small venture in which the primary driving forces include independence, autonomy, and control.

macroiterations

In design-centered entrepreneurship it is moving from one particular action stage back to a previous stage for further development.

manipulation

An entrepreneur attempts to make changes in the external environment to achieve consistency between an organization and its environment.

marketability

Assembling and analyzing relevant information about a new venture to judge its potential success.

microiterations

In design-centered entrepreneurship it is iterating within each action stage to improve the outcome.

minimum viable product (MVP)

This is the early version of the product that enables a full turn on the feedback loop with a minimum of effort.

pivot

A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.

product availability

The availability of a salable good or service at the time the venture opens its doors.

prototyping

A physical representation of the venture that captures the essence of an idea in a form that can be shared with others for communication and feedback that closes the gap between concept and reality.

selection

A new venture locating in a favourable environment.

small profitable ventures

A venture in which the entrepreneur does not want venture sales to become so large that he or she must relinquish equity or ownership position and thus give up control over cash flows and profits, which it is hoped will be substantial.

start-up problems

A perceived problem area in the start-up phase of a new venture, such as lack of business training, difficulty obtaining lines of credit, and inexperience in financial planning.

technical feasibility

Producing a product or service that will satisfy the expectations of potential customers.

uniqueness

The special characteristics and design concepts that draw the customer to the venture, which should provide performance or service that is superior to that of competitive offerings.

validated learning

A process in which one learns by trying out an initial idea and then measuring it to substantiate the effect.

Many entrepreneurs lack _____ for their new venture.

Objectivity

What in the prestart-up and start-up phases considers whether the venture should be classified as lifestyle, small profitable, or high-growth?

Growth of sales

Poor financial understanding is characterized by which of the following?

Inadequate understanding of costs and funding requirements

Three specific phases that a new venture goes through are

Prestart-up, start-up, and poststart-up

The type of venture that is expected to attract venture capital would most likely be a

High-growth venture

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

Feasibility criteria approach

Feasibility analysis includes

Technical, market, financial, organizational, and competitive analysis