Entrepreneurial and Small Business Concepts

Vocabulary flashcards defining fundamental concepts in entrepreneurship, small business ownership, business planning, risks, and financial fundamentals based on the lecture notes.

Entrepreneurship

The process of creating, organizing, managing, and operating a business while assuming financial risk in order to earn a profit.

Entrepreneur

A person who starts and manages a business, assuming the risks and rewards associated with ownership.

Leadership

The ability to guide and motivate others.

Creativity

The ability to generate new ideas and solutions.

Innovation

Introducing new products, services, or methods.

Self-Confidence

Belief in one's abilities and decisions.

Persistence

Continuing despite setbacks and challenges.

Flexibility

Adjusting to changes in the market or business environment.

Initiative

Taking action without being told.

Risk-Taking

Accepting calculated risks after evaluating possible outcomes.

Responsibility

Being accountable for decisions and outcomes.

Small Business

An independently owned and operated business with relatively few employees and a small share of the market.

Sole Proprietorship

A business owned and operated by one person.

Partnership

A business owned by two or more individuals.

Corporation

A separate legal entity owned by shareholders.

Franchise

A business that purchases the right to use an established company's name and operating system.

Franchisor

The company granting the rights.

Franchisee

The person purchasing the rights.

Business Plan

A written document describing business goals and strategies for achieving them.

Risk

The possibility of loss or failure.

Startup

A newly established company focused on growth.

Founder

The person who starts a company.

Scalability

The ability of a business to grow efficiently.

Funding

Money used to start or grow a business.

Investor

Someone who provides money to a business expecting a return.

Venture Capital

Investment provided to businesses with high growth potential.

Venture Capitalist

An investor who provides venture capital.

Stakeholder

Anyone affected by a business.

Pitch Deck

A presentation used to explain a business idea and attract support or funding.

Competitor

A business offering similar products or services.

Competitive Advantage

A feature that makes a business superior to competitors.

Business Model

How a company makes money.

Financial Projection

Estimated future financial performance.

Profit

Money remaining after expenses are paid (Formula: Profit-Revenue-Expenses).

What is the difference between Entrepreneurs and Small Business Owners?

Entrepreneurs:

Interested in taking on new business opportunities

An individual with an innovative product of service

Formulates and grows a business from that idea

Small Business Owners:

Not always interested in taking on new business opportunities.

Their key objective is to generate profits

Content to stick with what their current business does

Product

tangible (physical) items

Services

intangible things like a skill or expertise that is performed

B2C

a customer who purchased an item from a business

B2B

When a business purchases a product, service, or information from another business.

S corporation

a type of corporation that meets specific Internal Revenue Code requirements, allowing profits and losses to be passed through to shareholders for tax purposes.

C corporation

For-profit corporation that is taxed separately from its owners. can have an unlimited number of shareholders and may offer various classes of stock.