Entrepreneurship and Planning Fundamentals

Vocabulary flashcards covering the motivations for self-employment, entrepreneurial characteristics, business planning factors, legal structures, and finance options.

Vision

The clear, shared sense of direction that allows people to achieve a common goal and establish an organisational goal for the future.

Initiative

The ability to be resourceful and independently decide what to do and when to do it.

Resilience

The ability to cope with ups and downs, adapt well to change, and bounce back from challenges.

Innovation

The process of creating a new or significantly improved product, service, or process.

Demographics

Population characteristics that affect customer spending, including age, ethnicity, gender, marital status, family size, and income.

Competition

Rivalry among businesses that try to supply the needs and wants of the market by offering rival products or services.

Sustainable competitive advantage

A strategy implemented by business owners to capture a larger share of the market over their competitors.

Target market

The group of customers to whom the business intends to sell its products and concentrates its marketing activities.

Sole Trader

A business owned and operated by one person that is unincorporated, simplest to establish, and grants the owner all profit while carrying all losses.

Unlimited liability

A legal condition of unincorporated businesses where the owner is personally responsible for debts and may be forced to sell personal assets like a house or car to pay them.

Partnership

An unincorporated business structure usually owned and operated by between 2 and 20 people who share profits and losses.

Proprietary (Private) Company

An incorporated business usually having between 2 and 50 private owners (shareholders) that must use 'Pty Ltd' after its name.

Public company

A large incorporated business with an unlimited number of shareholders whose shares are listed on the Australian Securities Exchange (ASX).

Incorporated association

A small-scale, non-profit entity formed by 5 or more people registered with NSW Fair Trading that can only conduct business in its registered state. e.g (small community groups) sports clubs, art groups

Crowdfunding

A method of raising small amounts of money from many people online to build early customer support.

Trade credit

A finance option where a business buys now and pays suppliers later to help manage cash flow.

Government grants

Money provided by the government that does not require repayment but has strict eligibility criteria.

incorporated

a business that is a separate legal entity from the owner/s. This means it can own assets, incur liabilities, and enter contracts independently.

unincorporated

a business that is not a separate legal entity from its owner/s. The owner is personally liable for the business's debts and obligations. e.g sole traders, partnerships