1.5 : Entrepreneurs & Leaders

Vocabulary practice flashcards covering the roles, motives, barriers, and organizational structures of entrepreneurs and leaders based on the lecture notes.

Entrepreneur

A person who is willing and able to create a new business idea or invention and takes risks in pursuing success, identifying opportunities, and creating value for customers.

Intrapreneurship

The practice of promoting entrepreneurial thinking and behaviour within an existing business by empowering employees to innovate and develop new projects.

$20\%$ time policy

A Google policy that allows employees to spend $20\%$ of their work time on personal projects, which led to the development of Gmail.

$15\%$ rule

A 3M policy that allows employees to spend up to $15\%$ of their work time pursuing projects outside of their normal job, leading to inventions like Post-It Notes.

Entrepreneurial capacity

An individual's ability to think creatively, take risks, and identify and seize business opportunities.

Risk

A situation where an entrepreneur can plan for outcomes because the probabilities are known or understood, often involving a conscious decision for potential reward.

Uncertainty

Unpredictable situations caused by factors outside an entrepreneur's control, such as the March $2011$ Japanese Tsunami or COVID-19 lockdowns.

Profit maximisation

A business objective focused on generating the maximum possible revenue and profit for the owners and shareholders.

Profit satisficing

Occurs when an entrepreneur aims for a satisfactory level of profit rather than the maximum, often to prioritise work-life balance.

Social entrepreneurship

A motive for starting a business that seeks to address social or environmental problems while simultaneously earning a living.

Sales maximisation

An objective where a firm focuses on generating the maximum revenue possible, sometimes by adjusting prices based on price elasticity of demand.

Market share

The percentage of total sales in a particular market that a company holds.

Cost efficiency

A company's ability to produce and deliver its products at the lowest possible cost to remain competitive with low prices.

Sole trader

A business owned by a single individual who has complete control and receives all profits, but faces unlimited liability.

Unlimited liability

A legal obligation where the business owner is personally responsible for all debts the business incurs.

Partnership

A business form where two or more people join together to share responsibilities, decision-making, and capital, but typically have unlimited liability.

Private Limited Company (Ltd)

A business structure where ownership is broken into shares sold privately, providing owners with limited liability.

Limited liability

A legal status where the owners are not personally responsible for the company's debts beyond their investment in the business.

Public Limited Company (PLC)

A company that has undergone a stock market flotation, allowing it to sell shares to the public to raise significant capital.

Franchising

A business model where an individual buys the rights to operate using the branding and system of a larger franchisor company.

Royalties

Ongoing fees paid by a franchisee to a franchisor in exchange for continued support and the right to use the brand.

Lifestyle business

Typically small, owner-operated businesses that prioritise the owner's specific personal interests or work-life balance over growth or profit maximisation.

Opportunity cost

The loss of the next best alternative when making a decision due to the problem of scarcity and limited resources.

Trade-off

A situation that occurs when two things cannot be fully achieved; having more of one thing results in having less of another.

Delegation

The process of a leader assigning tasks and responsibilities to team members, which requires learning to trust and verify.