GMS200 - Global Management Chapter 6: Entrepreneurship & New Ventures

These flashcards cover key terms and concepts related to entrepreneurship and new ventures as discussed in the lecture notes.

Entrepreneurship

Strategic thinking and risk-taking behavior that results in new opportunities.

Classic entrepreneur

Pursues opportunities others fail to recognize or view as problems or threats.

Serial entrepreneur

Starts and runs businesses and nonprofits repeatedly.

First-mover advantage

The advantage gained by the first to spot or exploit a niche or enter a new market.

Internal locus of control

The belief that one controls their own destiny; self-directing and seeking autonomy.

High energy level

Characteristic of entrepreneurs; they are persistent and willing to exert extraordinary efforts.

High need for achievement

Motivation to accomplish challenging goals; thrive on performance feedback.

Tolerance for ambiguity

Ability to tolerate high degrees of uncertainty; a trait of risk-takers.

Self-reliance

Wanting independence and being self-directed; not wanting to work for others.

Necessity-based entrepreneurship

Starting a business due to few or no other employment options.

Social entrepreneurship

A form of ethical entrepreneurship focused on solving pressing social problems.

Business model

A plan for making a profit by generating revenues greater than costs.

Startup

A new and temporary venture trying to establish a profitable business model.

Lean startups

Utilize open-source software and free web services to contain costs while remaining small.

Family-owned small businesses

Account for 80% of private firms in Canada and provide 60% of the nation’s GDP.

Business incubator

Offers space, services, and management advice to help small businesses start.

Debt Financing

Involves borrowing money from a person, bank, or financial institution for business.

Equity Financing

Exchanging ownership shares for outside investment.

Angel Investor

A wealthy individual who invests in return for equity in a new venture.