Entrepreneurship and Innovation Flashcards

A complete set of vocabulary flashcards based on the lecture notes, covering the definition of entrepreneurship, various psychological and economic theories, business structures, levels of innovation, and the entrepreneurial process.

Entrepreneurship

The process of creating value by bringing together a unique combination of resources to exploit an opportunity.

Entre-prendre

A $17^{th}\text{-century}$ French word meaning "between-taker" or "go-between", with the verb meaning "to undertake."

Intrapreneur

An employee who is tasked with developing an innovative idea or project while acting like an entrepreneur within a company or organization.

Enterprise Capability

As defined by the Davies Review ($2002$), the capacity to handle uncertainty, respond positively to change, and make reasonable risk/reward assessments.

Entrepreneur

One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling resources.

Opportunity Entrepreneurs

Individuals who start businesses because they spot a specific gap or opportunity in the marketplace.

Necessity Entrepreneurs

Individuals who start businesses because they cannot find work in any other way.

Serial Entrepreneurs

Those who repeatedly start businesses and grow them to a sustainable size before starting others.

Leap Froggers

Entrepreneurs who start a company, manage its growth until they get bored, then sell it to start another, often skipping outdated technology for new solutions.

Entrepreneurship Theory

A set of properly argued ideas intended to explain facts or events that give birth to entrepreneurship in human civilization.

Innovation Theory

A theory by Joseph Schumpeter proposing that entrepreneurs are change agents who apply inventions and discoveries to make new combinations.

Needs Achievement Theory

A theory by David C. McClelland suggesting that a "burning desire" or high need for achievement ($n\text{-Ach}$) attracts individuals to entrepreneurial actions.

Status Withdrawal

A theory by Hagen E. suggesting that the creativeness of a minority group is triggered when they lose their previous status respect.

Social Change Theory

Max Weber's theory that entrepreneurial growth depends on the ethical value system of society, specifically the protestant ethic and the spirit of capitalism.

Model Personality

Cochran's theory that the entrepreneur represents a society's model personality, determined by cultural values, role expectations, and social sanctions.

Prize Adjustment Theory

Kirzner's theory asserting that the entrepreneur's chief role is identifying profit opportunities based on the adjustment of prices in the market.

X-Efficiency Theory

Harvey Leibenstein's theory focusing on "gap filling" and the degree of inefficiency in the use of resources within a firm.

Functional Behaviour Theory

Casson's theory emphasizing that economic insight combined with managerial perspectives can clarify strategic issues and firm structure.

Culture

A way of life for a group of people including behaviors, beliefs, values, and symbols passed from one generation to the next by communication and imitation.

PESTEL

A framework analyzing external environmental factors influencing business success, including Political, Economic, Social, Technological, Environmental, and Legal elements.

Pull Factors

Encouraging factors that attract individuals to entrepreneurship, such as perceived risk/reward, self-fulfillment, and social prestige.

Push Factors

Necessity-based elements that force individuals toward entrepreneurship, such as unemployment, job insecurity, or disagreement with management.

Creativity

The mental and imaginative steps individuals take to generate novel and useful ideas; its primary focus is idea generation.

Innovation

The successful exploitation of new ideas or the specific tool of entrepreneurs to exploit change as an opportunity for a different business.

Entrepreneurial Process

A structured set of activities including identifying opportunities, developing concepts, resource mobilization, implementation, and growth.

Opportunity

A perceived means of generating economic value that has not previously been explored and is not currently being exploited by others.

Return on Investment (ROI)

A business opportunity's potential to bear fruits within a set period of time and cover the capital used in addition to bearing profits.

Window of Opportunity

A limited period of time in which a business idea remains viable before the market matures or reaches saturation.

Feasibility Study

Early research conducted by an entrepreneur to assess the product, market, and competitors to determine if a venture will survive.

Technical Feasibility

Evaluation of whether a business has the necessary expertise, infrastructure, and capital to develop and operate a proposed product.

Market Feasibility

Gathering information to determine if there is a group of potential customers with unsatisfied needs and the purchasing power to buy the product.

Sole Trader

A self-employed person who runs their own business as an individual and is personally liable for all business debts.

Partnership

An arrangement where two or more parties agree to cooperate to oversee business operations and share its profits and liabilities.

Private Limited Company (LTD)

A business structure owned by shareholders with limited liability, managed by at least $2$ directors in the context of Zimbabwe.

Public Limited Company

A voluntary association of members listed on the stock exchange with a separate legal existence and liability limited to the face value of shares owned.

Franchise

A business model where the owner licenses operations, branding, and knowledge to another party in exchange for a fee.

Entrepreneurial Ethics

The moral principles and standards that guide entrepreneurs in their business dealings and treatment of stakeholders.

Ethical Dilemma

A situation involving a choice between two opposing courses of action where there is no obvious right or wrong answer.

Utilitarian Model

The ethical belief that the right action is the one that pursues the greatest good for the greatest number of people.

Deontological Approach

A Kantian ethical philosophy that determines moral righteousness based on universal laws and standards rather than situational outcomes.

Communitarianism

An ethical perspective where individual decision-makers focus on the duties owed to the communities in which they participate.

Disruptive Innovation

Innovation that transforms expensive or sophisticated products into those that are more affordable and accessible to a broader population.

Enabling Technology

Technologies and innovations that substantially change or improve processes, making product affordability possible for a broader market.

Innovative Business Model

A model that targets new or bottom-tier customers who could not previously afford or use certain products.

Coherent Value Network

The group of upstream and downstream business partners who must adapt to and benefit from a new disruptive business model.

Incremental Innovation

The process of making small, gradual improvements to an existing product, service, or process to appeal to current customers.

Radical Innovation

The process of creating something completely new, such as a new product, service, or business model that changes the market.

Open Innovation

The practice of sourcing ideas from external sources as well as internal ones and sharing knowledge beyond the business.

Closed Innovation

An inside-out approach where a company innovates purely using internal Research and Development ($R\&D$) processes.

Creative Destruction

A concept by Schumpeter describing the deliberate dismantling of established processes to make way for improved methods of production.

Tangible Assets

Physical resources required for a business, such as land, vehicles, equipment, machinery, and inventory.

Intangible Assets

Non-physical properties such as patents, trademarks, franchises, goodwill, and copyrights.

Business Plan

A formal written expression of the entrepreneurial vision describing the strategy and operations of a proposed venture.