Entrepreneurship and Business Structures: Key Concepts and Processes (Week 5, Ch. 5)

Entrepreneurship

The process of starting new organizations, generally in response to opportunities.

Social Enterprises/Ventures

Organizations that are started in response to needs within the community.

Social Entrepreneurship

Activity with an embedded social purpose creating solutions to social problems and leads the beneficiaries to a better standard of living.

Creative Destruction

The process of transformation that accompanies radical innovation, where the ways things were done before is 'destroyed'.

Entrepreneurially Alert

Perceive the opportunities for entrepreneurial profits by being sensitive to signals in the marketplace.

Entrepreneurial Ventures

Organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals.

Small Businesses

Independently owned, operated, and financed; has fewer than 100 employees; doesn't necessarily engage in any new or innovative practices; and has relatively little impact on its industry.

Self-Employment

Individuals who work for profit or fees in their own business, profession, trade, or farm.

Innovation

Is a process of changing, experimenting, transforming, and revolutionizing, and it's a key aspect of entrepreneurial activity.

Number of New Start-Ups

All businesses—whether they fit the definition of entrepreneurial ventures or not—were new start-ups at one point in time.

Job Creation

Job creation is important to the overall long-term economic health of communities, regions, and nations.

The Entrepreneurial Process

Explore the entrepreneurial context: gathering information, identifies potential opportunities, and pinpoints possible competitive advantage.

Starting the Venture

Developing a viable organizational mission, exploring organizational culture issues, and creating a well-thought-out business plan.

Managing the Venture

Organizing the venture, choosing a legal form of business organization, addressing other legal issues such as patent or copyright searches.

Scalable

The ability to generate revenues faster than the rate you are incurring costs.

Researching a Venture's Feasibility

The process that includes generating ideas, evaluating ideas, researching competitors, and researching financing.

Developing a Business Plan

A written document that summarizes a business opportunity and defines and articulates how the identified opportunity is to be seized and exploited.

Sharing Economy

Business arrangements that are based on people sharing something they own or providing a service for a fee.

Sole Proprietorship

A form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts.

General Partnership

A form of legal organization in which two or more business owners share the management and risk of the business.

Limited Liability Partnership

A legal organization formed by general partner(s) and limited partner(s).

Corporation

A legal business entity that is separate from its owners and managers.

Certified B Corporation

A new kind of business that balances purpose and profits.

Cooperative

An alternative business model where people collectively do it for themselves.

Curiosity-driven Research

Research that is directed toward acquiring new knowledge rather than toward some more practical objective.

Applied Research

Accesses, rather than generates, new knowledge and applies it to a practical or commercial purpose.

Research and Development

Includes investigative activities that an organization conducts to lead to discoveries that will help develop new products or procedures.

Entrepreneurial Mindset

An inclination to discover, evaluate, and take advantage of opportunities.

Contingency Plan

A plan for dealing with a worst-case situation or crisis (often referred to as a Plan B).

Boiled Frog Phenomenon

A perspective on recognizing performance declines that suggests watching out for subtly declining situations.

Harvesting

Exiting a venture when an entrepreneur hopes to capitalize financially on the investment in the venture.