BMGT 414 – Business Entrepreneurship (Weeks 1-6)

Vocabulary flashcards covering key terms, theories, and concepts from Weeks 1-6 of BMGT 414 Entrepreneurship.

Entrepreneurship

The process of identifying, developing, and bringing a new business idea to life while taking on risk.

Entrepreneur

An individual who initiates, creates, and manages a new venture, assuming financial risk to earn profits.

Innovation

The act of introducing new ideas, products, or methods to create value in the marketplace.

Risk-taking

The willingness to commit resources to uncertain outcomes in pursuit of business success.

Visionary Thinking

The ability to foresee future market needs and craft strategies to meet them.

Proactive Behavior

Actively initiating change and persisting toward goals rather than merely reacting to events.

Richard Cantillon’s Theory (1725)

Defines entrepreneurs as risk-takers who buy at certain prices and sell at uncertain ones.

Jean-Baptiste Say’s Theory (1803)

Portrays entrepreneurs as coordinators who combine production factors to create value.

Joseph Schumpeter’s Theory (1934)

Sees entrepreneurs as innovators who spur economic development through creative destruction.

Creative Destruction

Schumpeter’s idea that new innovations replace outdated products and processes, driving growth.

Israel Kirzner’s Theory (1973)

Highlights the entrepreneur’s alertness in spotting and exploiting market opportunities.

Nature vs. Nurture Debate

Discussion on whether entrepreneurial traits are inborn or developed through education and environment.

Job Creation

The generation of employment opportunities resulting from new and growing ventures.

Self-reliance

An individual’s capacity to generate income independently through entrepreneurship.

Business Opportunity

A market gap or unmet need that can be exploited for profit.

SWOT Analysis

Strategic tool that assesses Strengths, Weaknesses, Opportunities, and Threats.

Feasibility Study

An investigation to determine the practicality and profitability of a proposed business idea.

Business Plan

A written document detailing a venture’s goals, strategies, market, and financial projections.

Angel Investor

A wealthy individual who provides capital to startups in exchange for equity or convertible debt.

Venture Capital

Professional investment funds that finance high-growth startups in return for equity.

SACCO

Savings and Credit Cooperative Organization that pools members’ funds to provide loans.

Chama

An informal rotating savings and investment group common in East Africa.

Uwezo Fund

Kenyan government financing program aimed at youth and women entrepreneurs.

Youth Enterprise Fund

Government initiative offering loans and support to youth-run businesses.

Women Enterprise Fund

Kenyan government facility providing credit and support services to women entrepreneurs.

Sole Proprietorship

A business owned by one person with unlimited liability and simple setup.

Unlimited Liability

Owner’s personal assets can be used to settle business debts.

Partnership

Business owned by two or more people who share profits, losses, and liabilities.

Company (Ltd.)

A legal entity separate from its owners, offering limited liability and governed by company law.

Limited Liability

Shareholders’ financial responsibility is restricted to the amount invested in the company.

Cooperative

Member-owned enterprise that operates democratically to meet shared economic or social goals.

NGO / Non-Profit

Organization focused on social missions rather than profit distribution to owners.

Family Business

Enterprise owned and often managed by members of one family, typically across generations.

Succession Planning

Process of preparing for leadership transition in a family or closely held business.

Franchising

Business model where an entrepreneur buys rights to use an established brand and operating system.

Joint Venture

Collaborative agreement where two or more firms create a new entity for a specific goal.

Subcontracting

Outsourcing specific tasks or components of production to another firm.

Digital Transformation

Integration of digital technologies (e-commerce, mobile money) to improve business operations.

Sustainability Practices

Business strategies focused on environmental stewardship and long-term resource management.

Customer-centric Strategy

Approach that prioritizes understanding and satisfying customer needs to gain competitive advantage.