The Entrepreneurial Society Practice Flashcards

These vocabulary flashcards cover the fundamental definitions, models, and personality traits discussed from Week 1 to Week 11 of the Entrepreneurial Society course.

Richard Cantillon

Defined entrepreneurs in the 1750s as intermediaries who assume the risk of buying goods at certain prices and selling them at uncertain prices, acting as arbitragers.

Entrepreneurial Opportunities

Situations in which new goods, services, raw materials, markets, and organizing methods can be introduced through the formation of new means, ends, or means-ends relationships.

Productive Entrepreneurship

Activities that contribute positively to economic growth, innovation, and societal well-being by creating value for others, such as inventing new technologies.

Unproductive Entrepreneurship

Activities that do not contribute to societal value or economic growth, often involving rent-seeking behaviors or exploiting tax loopholes for personal gain.

Destructive Entrepreneurship

Activities that actively harm societal progress or economic well-being, such as illegal businesses or those that harm the environment.

Neuroticism

A Big Five personality trait related to adjustment and emotional stability; high scores correlate with negative emotions like anxiety and hostility.

Conscientiousness

A Big Five personality trait reflecting an individual's degree of achievement motivation and dependability in the pursuit of goals.

Survival Ventures

Necessity-driven businesses that provide basic subsistence for the entrepreneur with little capacity for reinvestment or growth.

Lifestyle Ventures

Businesses that provide a relatively stable income stream for owners based on a maintenance approach, typically without seeking meaningful expansion.

Managed Growth Ventures

Businesses with a workable model that seek stable growth over time, reflected in periodic entry into new markets and expanded facilities.

Aggressive Growth Ventures

Often technology-based 'gazelles' or 'unicorns' that seek exponential growth and are typically funded by equity capital.

Commodity Trap

A situation where products or services become so standardized that customers see no difference between options, forcing businesses to compete primarily on price.

Unicorn

A privately held startup valued at over $1B$, often driven by disruptive innovations.

Decacorn

A company valued at over $10B$, indicating exceptional growth and market impact beyond the unicorn threshold.

The Chasm

The fundamental difference identified by Geoffrey Moore between early customers (innovators/early adopters) and the mainstream market.

Social Entrepreneurship

Innovative activity with a social objective where entrepreneurs act as change agents to transform systems causing suffering to vulnerable groups.

Indigenous Entrepreneurship

The process of using community resources to create value while supporting the community’s unique social and economic needs.

Socioemotional Wealth

The nonfinancial value that families derive from controlling a firm, including status, reputation, and pride.

Succession

The transfer of business ownership and/or management from one generation of family members to the next.

Intrapreneurship

An avenue for employees within an existing organization to realize their personal entrepreneurial vision.

Corporate Venturing

A type of corporate entrepreneurship involving the birth of new businesses within (internally) or from (externally) an existing corporation.

Strategic Renewal

The transformation of organizations through a renewal of their key ideas, such as IBM shifting from hardware to cloud services.

Born Globals

Companies that internationalize from inception or within a few years of founding, leveraging digital technology.

CAGE Distance

A framework identifying Cultural, Administrative, Geographic, and Economic differences that create barriers to international entrepreneurship.

Creative Destruction

A concept introduced by Joseph Schumpeter in 1934 explaining how entrepreneurs disrupt markets with new technologies.

Entrepreneurial Ecosystem

A set of interdependent actors and factors coordinated to enable productive entrepreneurship within a particular territory.

Bootstrapping

Financing a business venture using personal finance and creative means without relying on debt or external capital sources.

Venture Capital

Professional investors who provide capital for startups in return for a percentage of ownership, often seeking high rates of return.

Business Angels

Wealthy individuals with a net worth over $1M$ who invest their own money into promising young ventures for both financial and nonfinancial returns.

Entrepreneurial Marketing

A proactive identification and exploitation of customer opportunities through innovative approaches to risk management, resource leveraging, and value creation.