Exam 1 Bussiness

Benefit corporation (or B Corp)

a form of organization certified by the nonprofit B Lab that ensures strict standards of social and environmental performance, accountability, and transparency are met.

Corporate entrepreneurship

a process of creating new products, ventures, processes, or renewal within large organizations.

Corporate venturing

larger companies investing money in and directly supporting startups.

Deliberate practice

carrying out carefully focused efforts to improve current performance.

Effectuation

the idea that the future is unpredictable yet controllable through human action.

Effectuation theory

a theory that describes how entrepreneurs think in order to start new ventures; based on the idea that the future is mostly unpredictable yet controllable through human action.

Entrepreneurs inside

entrepreneurs who think and act entrepreneurially within all types of organizations.

Entrepreneurship

a way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them.

Evidence-based entrepreneurship

the scientific method of collecting data and testing ideas to validate (or not) that an opportunity is worth pursuing.

Family enterprise

a business that is owned and managed by one or more family members beyond the founding generation.

Franchising

a method of distributing products or services involving a franchisor (the creator of the brand name and business operating system) and franchisee (the operator that buys the license to do business using the company name and operating system).

Intrapreneurs

employees who think and act entrepreneurially within different types of organizations.

Royalties

a share of the revenues of a business paid by a franchisee to the franchisor.

Serial entrepreneurs (or habitual entrepreneurs)

entrepreneurs who start several businesses, either simultaneously or consecutively.

Social entrepreneurship

the process of sourcing innovative solutions to social and environmental problems.

Startup

a temporary organization in search of a scalable business model.

Sustainable Development Goals (SDGs)

a blueprint developed by the United Nations for achieving a thriving, inclusive, and sustainable society by 2030.

Behavior-focused strategies

methods to increase self-awareness and manage behaviors, particularly when dealing with necessary but unpleasant tasks. These strategies include self-observation, self-goal setting, self-reward, self-punishment, and self-cueing.

Confirmation bias

the tendency to only use positive information, interpret new information as positive, or ignore information that discredits your idea or business.

Constructive thought patterns

models to help you form positive and productive ways of thinking that can benefit your performance.

Creativity

the ability to use knowledge in new ways.

Entrepreneurial mindset

a mental process that enables you to recognize and act on valuable opportunities with incomplete information while being resilient under complex and uncertain conditions.

Entrepreneurial passion

an intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures or tasks and activities and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals.

Entrepreneurial self-efficacy

the belief that entrepreneurs have in their own ability to begin new ventures.

Fixed mindset

the assumptions held by people who perceive their talents and abilities as set traits.

Growth mindset

the assumptions held by people who believe that their abilities can be developed through dedication, effort, and hard work.

Habit

an unconscious pattern of behavior that is carried out often and regularly.

Improvisation

the art of spontaneously creating something without preparation.

Metacognition

our ability to understand and be aware of how we think and the processes we use to think and make decisions.

Mindshift

a shift from an existing mindset to a more entrepreneurial one so you have more courage to take action without complete information, navigate uncertainty, and embrace ambiguity while also developing your skillset to identify new business opportunities.

Nascent entrepreneur

a person engaging in startup efforts who has not officially started a business.

Natural reward strategies

types of compensation designed to make aspects of a task or activity more enjoyable by building in certain features or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds.

Opportunity

a possibility of generating value through the introduction of unique, novel, or desirable products, services, and even processes that have not been previously exploited in a particular context.

Reflection

a thoughtful exercise in which one reviews an experience, considers it deeply, and evaluates the experience.

Resilience

the capacity to withstand and positively recover from life's challenges.

Self-cueing

the process of prompting that acts as a reminder of desired goals and keeps your attention on what you are trying to achieve.

Self-leadership

a process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures.

Self-observation

a process that raises one's awareness of how, when, and why they behave the way they do in certain circumstances.

Self-punishment (or self-correcting feedback)

a process of examining one's mistakes before making a conscious effort not to repeat them.

Self-reward

a process that involves compensating oneself upon achieving a goal. These rewards can be tangible or intangible.

Self-goal setting

the process of setting individual goals for oneself.

Earned-income activities

the sale of products or services that are used as a source of revenue generation.

Enterprising nonprofits

a form of social entrepreneurship where both the venture mission and the market impact are for social purposes.

For-profit social venture

a business that has a dual mission, aiming to achieve both social or environmental objectives and financial sustainability.

Hybrid social ventures

organizations that engage in revenue-generating activities while also having a philanthropic strategy to help deliver social value.

Shared value

a framework designed to create economic value while providing solutions to social and environmental problems.

Social entrepreneurship

the process of identifying pressing social and environmental problems in society and creating sustainable solutions for positive and long-term impact.

Social impact measurement

the process of measuring social change attributed to the direct activities of an organization during a certain period of time.

Social innovation

a novel solution to a social problem that is more effective, efficient, or just than existing solutions and for which the value created accrues primarily to society as a whole rather than private individuals.

Social return on investment (SROI)

a method for measuring a venture's social, economic, and environmental value relative to the costs it incurs.

Social value

the quantification of value beyond monetary value that is created when people experience changes in their lives.

Social venture

businesses created by social entrepreneurs to resolve social or environmental problems.

Social venture capital (SVC)

a form of investment funding that focuses on social ventures with a social or environmental mission.

Stakeholders

the people or groups affected by or involved with the achievements of the social enterprise's objectives.

Theory of change

a plan that explains how and why a set of specific change initiatives is expected to lead to certain outcomes.

Venture philanthropy

a type of impact investment in which investors support social ventures by applying some principles of venture capital funding.

Wicked problems

large, complex social problems for which there is no clear or obvious solution; where there is limited, confusing, or contradictory information available; and where a whole range of people with conflicting interests engage in debate or solution generation.

Alertness

the state of being ready to think, notice, understand, and act in a particular situation.

Bisociation

a mental process that allows us to connect two things that are seemingly unrelated or unconnectable into something new.

Design pathway

a pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs.

Effectuate pathway

a pathway that involves using what you have (skills, knowledge, abilities) to uncover an opportunity that uniquely fits you.

Find pathway

a pathway that assumes that opportunities exist independent of entrepreneurs and are waiting to be found.

Idea

any conception existing in the mind as a result of mental understanding, awareness, or activity.

Imagination-based strategies

actions that involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies.

Lateral thinking

a method of thinking that occurs when there is a change in pattern from one idea to another that is not linear but unexpected and lateral.

Migraine headache problems (MHPs)

problems that need to be solved of which there are people willing to pay for the solution.

Prior knowledge

information gained from a combination of life and work experience.

Search pathway

a pathway used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities.

AEIOU framework

acronym for activities, environments, interactions, objects, and users — a framework commonly used to categorize observations during fieldwork.

Convergent thinking

a thought process that allows us to narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential.

Design thinking

a human-centered approach to innovation that brings together what people need with what is technologically feasible and economically viable.

Divergent thinking

a thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Empathy

the combination of social and emotional skills to better understand the circumstances, intentions, thoughts, feelings, and needs of others.

Feedback interview

an interview conducted to get feedback on an existing product or service.

Insight

an interpretation of an observation or a sudden realization that provides us with a new understanding of a human behavior or attitude that results in the identification of a need.

Latent needs

needs we don't know we have.

Need

a lack of something desirable, useful, or required that is uncovered through the design process.

Need-finding interview

an interview conducted to better understand the problems or needs of people or validate what you think a need or problem may be.

Observation

the act of closely monitoring the behavior and activities of users/potential customers in their own environment.

Service design thinking

the process of planning and organizing sustainable solutions to enhance the customer experience.

All-benefits

a type of value proposition that involves identifying and promoting all the benefits of a product or service to customer segments, with little regard for the competition or any real insight into what the customer really wants or needs.

Business model

describes the rationale of how a new venture creates, delivers, and captures value.

Business Model Canvas (BMC)

a one-page plan that divides the business model into nine components in order to provide a more thorough overview.

Crowdsourcing

the use of the internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people.

Customer value proposition (CVP)

a statement that describes why a customer should buy and use your product or service versus the competition.

Customers

people who populate the segments of a market served by the offering.

Differentiation

the process of meeting a unique need, incorporating new features not currently in similar products or services, and providing unmatched customer service.

Disruption

the action of smaller companies entering a market and outcompeting the larger players that are currently there.

Diversified market

two or more customer segments with different needs and problems that bear no relationship to each other.

Dramatic difference

the uniqueness of the product or service or the extent to which it differs from the many other options that are likely available.

Financial viability

the revenue and cost structures a business needs to meet its operating expenses and financial obligations.

Infrastructure

the resources (people, technology, products, suppliers, partners, facilities) that an entrepreneur must have in order to deliver the CVP.

Lean Canvas

an adapted version of the BMC that was created to better address the needs of startup entrepreneurs.

Mass market

a large group of customers with very similar needs and problems.

Multisided markets

markets with two or more customer segments that are mutually independent of each other.

Niche market

a small market segment that consists of customers with specific needs and requirements.

Offering

what you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them.

Overt benefit

the one big benefit for the customer.

Points-of-difference

a type of value proposition that focuses on the product or service relative to the competition and how the offering is different from others on the market.

Product-market fit

an offering that meets the needs of customers.