Entrepreneurship and Business Planning Practice Flashcards

70 vocabulary flashcards covering basic entrepreneurship terms, design thinking, business plan components, environmental scanning, SWOT analysis, production 4Ms, and marketing strategies.

Entrepreneurship

The art of observing correct practices in managing and operating a self-owned wealth creating business enterprise by providing goods and services that are valuable to the customers.

Entrepreneur

Usually described as an individual who establishes a business to make profit, runs it even through the risks, and enjoys most of rewards.

Entrepreneurial Mindset

A way of thinking, reasoning, and having a perspective on seizing an opportunity, adopting a holistic approach, and building on leadership.

Skills of Reflection

Tools that allow you to constantly learn from your experiences.

Skills of Experimentation

Involves taking a concrete action to test an approach or several possible approaches.

Skills of Creativity

Being open to new perspectives or other ways of looking at things that are better or of higher quality.

Skills of Empathy

The ability to understand the actual conditions of other people.

Skills of Play

Entrepreneurial core competency involving fun and teambuilding.

Empathize

A human-centered component of creativity through design thinking.

Define

A design thinking stage where the business should inspire you to identify and solve a problem.

Ideate

Generating and developing new ideas to address the needs of people.

Prototype

The stage of creating a sample product or service.

Test

Trying out or selling the sample product or service.

Commercial Entrepreneurship

Income-generating enterprises that are established mostly for the purpose of generating profits.

Social Entrepreneurship

Enterprises established with more emphasis on social impact for the poor and other disadvantaged groups; uses business methods to help social causes.

Corporate Entrepreneurship

This type involves creating new products, ventures, or organizational renewal within large organizations.

Intrapreneurship

Another name for corporate entrepreneurship.

Start-up

Entrepreneurship involving the creation or setting up of a new small business.

Buying a Franchise

A form of entrepreneurship that involves a franchise and minimizes some business risks for an entrepreneur.

Business Plan Introduction

The general perspective of the business containing the name, address, owner, description, and funding requirements.

Proposed Business Name

A key element identified in the introduction section of a business plan.

Address of the Business

The specific location of the enterprise as listed in the business plan introduction.

Name of Owner

The identification of the individual who owns the business in the introductory document.

Description of the Business

A section of the introduction providing details about the nature of the enterprise.

Funding Requirement

The financial resources needed for the business as specified in the introduction.

Executive Summary

A section that points out the overall highlights of the business plan.

Vision

What the organization wants to become; it describes how the future will look if the organization achieves its mission.

Mission

An explanation of what the organization does, for whom, and the benefit it provides.

Goals

A long-term purpose which a person strives to achieve.

Objective

Strategies or implementation steps taken to attain identified goals.

Environmental Scanning

The process of monitoring the Macro and Micro environments affecting a business.

Macro environment

Broad factors that affect the overall economy and state of business.

Socio cultural

Macro factors including education needs, housing needs, and food preferences.

Technology advancement

Macro factors involving innovation in technology.

Economics trends

Factors like labor cost and unemployment rate that directly affect the business climate.

Industry trends

Factors tracking the growth or decline of a specific industry.

Environmental factor

Macro environmental events such as natural disasters.

Political situation

Factors involving government policies that affect the business.

Microenvironment

Factors that directly affect specific types of industries, including competitors and suppliers.

Competitor

A microenvironment factor involving the increase or decrease in the number of competitors.

Suppliers

Supply entities in the microenvironment that affect production.

Increase of substitute products

The entry or exit of substitutes that affect competition in the microenvironment.

SWOT Analysis

An assessment tool measuring Strengths, Weaknesses, Opportunities, and Threats.

Strengths (S)

Internal attributes and resources that support a successful outcome.

Weaknesses (W)

Internal factors that may hinder an organization's performance.

Opportunities (O)

External factors that the organization can capitalize on to grow or improve.

Threats (T)

External challenges that could jeopardize the organization's success.

4M in Production

The four key components of manufacturing: Manpower, Machine, Method, and Materials.

Manpower

The human workforce involved in the manufacture of products.

Machine

The manufacturing equipment used in the production of goods or delivery of services.

Method

The process or technique of converting raw materials to finished products.

Materials

The raw materials needed in the production of a product.

Mass marketing

A marketing approach that targets a large audience with one strategy without segmenting the market.

One on one marketing

A personalized marketing strategy that focuses on creating individualized interactions with customers.

Undifferentiated marketing

A strategy where a company creates a single marketing message and campaign that targets the entire market.

Education needs

An example of a socio cultural factor in the macro environment.

Housing needs

A socio cultural variable considered during environmental scanning.

Food preferences

Socio cultural factors that affect the macro environment of a business.

Labor cost

An economics trend that directly affects the business climate.

Unemployment rate

A specific economic trend monitored in the macro environment.

Natural disasters

Specific indicators listed under environmental factors in the macro environment.

Government policies

The primary component identified under the political situation in the macro environment.

Strong brand reputation

Example of a strength (Internal attribute).

Skilled workforce

Example of a strength (Internal resource).

Proprietary technology

Example of a strength (Internal attribute).

Limited resources

Example of a weakness (Internal hindrance).

Lack of expertise

Example of a weakness (Internal hindrance).

Poor location

Example of a weakness (Internal hindrance).

Market trends

Example of an opportunity (External factor) for organization growth.

Regulatory changes

Example of a threat (External challenge) that could jeopardize success.