Entrepreneurship: Basic Concepts – Lecture Notes

Vocabulary flashcards covering essential terms, theories, skills and personal traits discussed in the lecture on Entrepreneurship: Basic Concepts.

Entrepreneur

An individual who initiates, organizes and manages a business venture, accepting the risks in order to make a profit.

Entrepreneurship

The economic activity of developing, managing and growing a business to introduce new or improved goods, services or production methods.

Origin of the term “entrepreneur”

First appeared in France during the Middle Ages, originally describing people who supplied services, not necessarily for personal profit.

Benefit: Opportunity to make a difference

Entrepreneurship lets individuals positively impact society through innovation and job creation.

Benefit: Opportunity to reach full potential

Running a venture enables entrepreneurs to maximize their talents, creativity and leadership abilities.

Benefit: Opportunity to earn unlimited profit

Entrepreneurs can enjoy income without a fixed ceiling, dependent on business success.

Benefit: Opportunity to do what you want

Entrepreneurship offers autonomy in pursuing passions and shaping one’s own work environment.

Benefit: Opportunity to contribute to society

Entrepreneurs create jobs, goods, and services, gaining recognition for their social contributions.

Entrepreneurship as a function of innovation

Theory that the entrepreneur’s key role is introducing new products, processes or markets to spur economic growth.

Schumpeter’s view of the entrepreneur

Described entrepreneurs as agents of ‘creative destruction’ who revolutionize the economy through innovation.

Entrepreneurship as a function of organizational development

Focuses on building effective structures and systems to sustain and scale a venture.

Managerial and leadership skills in entrepreneurship

Abilities to plan, organize, motivate and control resources, crucial for guiding a business toward profit.

Merchant–money-lender leadership type

Leader who finances trade and production, focusing on capital provision and commercial risk.

Management leadership type

Leader who emphasizes administrative control and operational efficiency within an enterprise.

Entrepreneurial personality leadership type

Leader driven by opportunity recognition, innovation and willingness to assume uncertainty.

High-achievement theory of entrepreneurship

Suggests entrepreneurs possess a strong need for achievement, motivating them to set challenging goals.

Social, political and economic structure theory

States that entrepreneurial activity is shaped by societal constraints, demand conditions, opportunities and labor supply.

Limitation structure

Social constraints (laws, norms, resources) that restrict or guide entrepreneurial choices.

Demand structure

Patterns in consumer needs and government policies that influence market opportunities.

Opportunities structure

Availability of supportive conditions—capital, technology, information—that increase entrepreneurial chances.

Labor structure

Supply, skills and mobility of the workforce affecting venture formation and growth.

Gap-filling function

Entrepreneurs identify and bridge missing links in markets, resources or information flows.

Input-completing function

Entrepreneurial act of assembling the necessary resources to make production possible.

Business management skills

Knowledge of planning, organizing, staffing, directing and controlling a company’s operations.

Teamwork and leadership skills

Ability to inspire, coordinate and collaborate with others toward common business goals.

Communication and listening skills

Clear conveying of ideas and active receipt of feedback essential for stakeholders’ alignment.

Customer service skills

Competence in understanding and satisfying clients’ needs to build loyalty.

Financial skills

Capability to budget, forecast, analyze and control the monetary aspects of a venture.

Analytical and problem-solving skills

Systematically examining situations and devising effective solutions to business challenges.

Critical thinking skills

Objective evaluation of information to make reasoned, evidence-based decisions.

Strategic thinking and planning skills

Long-range visioning and mapping of actions that position the firm competitively.

Technical skills

Proficiency with industry-specific tools, technologies or processes required for production.

Time management and organizational skills

Prioritizing tasks and structuring resources efficiently to meet deadlines.

Branding, marketing and networking skills

Building a recognizable identity, promoting offerings and cultivating beneficial relationships.

Self-awareness

Understanding one’s strengths, weaknesses and motivations to guide entrepreneurial actions.

Self-motivation

Internal drive that keeps an entrepreneur focused and persistent without external pressure.

Risk-taking

Willingness to leave comfort zones and face uncertainty after careful analysis of potential outcomes.

Courage

Quality that empowers entrepreneurs to act on calculated risks and pursue bold ideas.

Creativity

Ability to generate novel ideas and see opportunities in everyday situations.

Opportunity-seeking

Habit of scanning the environment to identify and exploit unmet market needs.

Innovativeness

Tendency to introduce new products, services or methods different from existing ones.

Confidence

Belief in one’s capability to achieve entrepreneurial goals despite challenges.

Positive thinking

Maintaining an optimistic outlook that helps overcome setbacks and sustain motivation.

Patience

Capacity to endure delays and difficulties while steadily working toward long-term success.

Demand for efficiency and quality

Commitment to producing superior outputs with optimal use of resources.