Enterprise Creation and Management - Topic 1 to 7

Vocabulary flashcards covering the definition, characteristics, types, and processes of entrepreneurship, based on the Makerere University Business School curriculum.

Entrepreneurship

The capacity and willingness to create, manage, and run a firm, including all of its risks, to make a profit.

Dimension: Ability

The capacity to identify or create and exploit opportunities.

Dimension: Attitude

The belief that opportunities can be exploited despite obstacles caused by resource and other limitations.

Dimension: Process

A dynamic way of creating incremental value or wealth.

Entrepreneur

An individual who identifies a business opportunity and takes on the financial and operational risks of creating and managing a new venture.

Creativity and Innovation

The trait where entrepreneurs generate new ideas or improve existing products.

Risk takers

Entrepreneurs who have the willingness to invest despite uncertainty.

Networking

The characteristic of building useful connections to support the business.

Action-orientation

Taking quick and decisive actions, normally without resorting to extensive research or planning before deciding a course of action.

Being proactive

Scanning the environment for opportunities, showing initiative, taking action, and persevering until the required result is achieved.

Internal Locus of Control

The belief that success or failure lies in the entrepreneur's hands and not in the resources at their disposal.

Persistence

The quality of endurance and determination in the face of obstacles like inflation, high taxes, or scarce resources.

Flexibility

Avoiding rigidity and blind obedience in favor of an approach that experiments to see what works.

Opportunity Orientation

A well-defined sense of searching for and creating opportunities all the time.

Motivation

A positive attitude that shows and communicates optimism and hopefulness to employees and stakeholders.

Hard working

Paying more physical and mental effort in operationalizing ideas that may lack initial support from others.

National Productivity

Contribution of entrepreneurship that leads to an increase in Gross Domestic Product (GDP).

Rural development

The contribution of entrepreneurship to developing areas outside of urban centers.

High taxation levels

A factor hindering the growth of entrepreneurship in Uganda related to government levies.

Entrepreneurial culture

A mindset or social environment that supports starting businesses; its absence hinders growth in Uganda.

Innovating Entrepreneurs

Individuals who see the opportunity for introducing a new technique, product, or market.

Schumpeter’s entrepreneur

A specific type of innovating entrepreneur who acts as a contributor to the economic development of a country.

Adoptive or Imitative Entrepreneur

Entrepreneurs who do not innovate changes themselves but copy technology or innovations made by others.

Fabian Entrepreneur

Entrepreneurs who are shy, lazy, follow set traditions, and are only interested in following the footsteps of predecessors.

Drone Entrepreneur

Individuals who refuse to copy or use opportunities, sticking to set practices even if operations become uneconomical.

Laggards

Another term for Drone Entrepreneurs who struggle to survive rather than grow and are often pushed out of the market.

Business Entrepreneurs

Individuals who conceive an idea for a new product or service and create a business to materialize it.

Trading Entrepreneur

Entrepreneurs who undertake trading activities, identifying market potential and stimulating demand without being concerned with manufacturing.

Industrial Entrepreneur

A manufacturer who identifies customer needs and creates products through industrial units like textile or electronic units.

Corporate Entrepreneur

An individual who uses innovative skills to organize and manage a corporate undertaking registered under an Act or statute.

Separate legal entity

The status of a corporate body, such as a company registered under the Companies Act, managed by a corporate entrepreneur.

Agricultural Entrepreneur

Those who undertake activities like mechanization and irrigation to produce crops.

Technical Entrepreneurs

Individuals who commercially exploit their own inventions and discoveries, relying on their technical expertise.

Non-technical Entrepreneur

Entrepreneurs concerned only with alternative marketing and promotional strategies rather than technical aspects.

Professional Entrepreneur

An individual who establishes a business but sells it for good returns to start another new idea rather than managing it long-term.

Pure Entrepreneur

An individual motivated by psychological, economical, and ethical considerations for personal satisfaction or status.

Induced Entrepreneur

Someone persuaded to start a venture due to government policy reforms, incentives, and concessions.

Motivated Entrepreneur

New entrepreneurs driven by self-fulfillment and the rewards of making and marketing new products.

Growth Entrepreneur

Individuals who choose industries with sustained growth prospects and aim to grow as fast and large as possible.

Super-Growth Entrepreneur

Entrepreneurs identified by high turnover of sales, liquidity of funds, and exceptional profitability performance.

Novice Entrepreneur

An individual starting their first venture with no prior business ownership experience.

Serial Entrepreneur

Someone devoted to one venture at a time but who starts many businesses over their career, often selling once established.

Portfolio Entrepreneur

An individual who retains an original business while building or purchasing a collection of additional businesses.

First-Generation Entrepreneurs

Individuals who start a business based on innovative skills, whose parents were in salaried service rather than business.

Modern Entrepreneur

One who undertakes businesses that suit current marketing needs and changing market scenarios.

Women Entrepreneurs

Enterprises that are owned and operated by women.

Nascent Entrepreneur

An individual who is currently in the process of starting a new business.

Habitual Entrepreneur

An individual who has prior business ownership experience.

Lifestyle Entrepreneurs

Entrepreneurs who develop an enterprise to fit their individual circumstances and provide income for their family.

Copreneurs

Married couples who share ownership, commitment, and responsibility for a business.

Social Entrepreneur

One who recognizes a part of society that is stuck and provides new ways to get it unstuck, such as child upliftment or environmental conservation.

Push (Forced) entrepreneurs

Individuals who start a venture due to dissatisfaction with a job, unemployment, or loss of a bread earner.

Pull (Motivated) entrepreneurs

Individuals attracted to entrepreneurship by an attractive business idea, high profit potential, or need for independence.

Enterprise creation Process

The functions, activities, and actions associated with perceiving opportunities and creating organizations to pursue them.

Idea generation

The process of conceiving a business idea through vision, environmental scanning, market surveys, or training.

Evaluating the idea

The critical element of the entrepreneurial process where the entrepreneur investigates the feasibility and profitability of an idea.

Feasibility study

A study conducted to analyze the viability of an idea and answer whether a project should proceed.

Business Plan

A detailed written document describing how a business will operate and achieve its operational and financial objectives.

Resource appraisal

The process of determining the entrepreneur's present resources and identifying what extra men, money, and machines are needed.

Intrapreneur

A person within a large corporation who takes responsibility for turning an idea into a profitable product through risk-taking and innovation.

Leadership Support

The act of leaders championing intrapreneurial initiatives by providing resources and removing barriers.

Culture of Innovation

An organizational environment that values creativity, experimentation, and learning from failure.

Autonomy

Giving employees the freedom to pursue ideas and make decisions independently within defined boundaries.

No Mistake Culture

A challenge to intrapreneurship where the fear of failure prevents innovation within an organization.

Opportunity

An idea that has been vetted to reveal potential to create value, meet market needs, and generate profit.

Searching for opportunities

Being alert to changes in consumer needs, technology, and market gaps.

Resource allocation

Guiding how financial, human, and material resources should be invested based on a feasibility study.

Market feasibility

A study focusing on establishing if there is demand for a product and identifying competitors.

Technical feasibility

A study considering how a product will be produced, including location, raw materials, and equipment.

Management feasibility

A study focusing on human resource requirements, including the skills and experience of the team.

Operational feasibility

Determining whether a product can be produced effectively and meet the organization's needs, often regarding internal systems.

Financial feasibility

Evaluating projected costs, revenues, profits, break-even points, and sources of capital.

Internal Users

Individuals within a business, such as the owner, managers, or board of directors, who use a business plan for direction.

External Users

Stakeholders such as investors, banks, and government regulators who use a business plan to assess viability.

Formal business plan

A detailed document following a standard format, commonly used to solicit external funding.

Informal business plan

A plan defined by the business owner that may not follow a standard format and is usually for personal use.

Executive Summary

A snapshot of the entire business plan including vision, mission, and key highlights.

Operations Plan

The section of a business plan detailing day-to-day production processes, suppliers, and logistics.

Title Page

A component of a business plan containing the business name and the details of the person who prepared the plan.

Trade credit

Financing realized when a supplier does not require immediate payment for goods or services supplied.

Implicit costs

Hidden costs in trade credit, such as cash discounts foregone or less favorable transacting terms.

Delayed or deferred settlement

Delaying the payment of expenses like wages or taxes to invest that money elsewhere for returns.

Venture capital

Pooling of capital from companies looking for investment opportunities in fast-growing businesses.

Business Angels

Private investors who back emerging entrepreneurial companies with their own money, often locally.

Startup

A newly established business in the early stage of its life cycle, moving from idea to operation.

Starting from scratch

Building a business from the ground up without using an existing business model or customer base.

Unlimited Growth Potential

An advantage of starting from scratch where the owner is free to expand or introduce new products without restriction.

Buying an Existing Business

Purchasing a company that is already operating, including its assets, reputation, and customer base.

Immediate Cash Flow

An advantage of buying an existing business because the entity is already making money.

Franchising

A model where a franchisor allows a franchisee to operate using its brand and model in exchange for fees and royalties.

Franchisor

The original business owner that grants rights to its brand and operational guidelines.

Franchisee

The person or company that buys the rights to operate a franchise and follows the franchisor’s guidelines.

Franchise

The actual business operated under the franchising model, including products and systems.

Product Distribution Franchise

A type where the franchisor allows the franchisee to sell products but does not control daily operations.

Business Format Franchise

A type where the franchisor provides a complete system, including brand, training, and strict operational procedures.

Manufacturing Franchise

A type where the franchisee is allowed to manufacture and sell products using the franchisor’s technology or formula.

Management Franchise

A type where the franchisee manages operations while using the franchisor’s brand and model, common in hotels.

Break-even analysis

A part of a financial plan that identifies the point where total revenue equals total costs.

Appendices

The section of a business plan containing supporting documents like CVs, legal documents, and research data.

Customer pre-payments

Advance payments from customers that provide the cash needed to operate the business at a low cost.