Chapter 1: The Foundations of Entrepreneurship — Vocabulary Flashcards

Vocabulary flashcards covering key terms and concepts from Chapter 1: The Foundations of Entrepreneurship.

Entrepreneur

A person who creates a new business in the face of risk and uncertainty to pursue profit and growth by identifying opportunities and assembling resources.

Small business

A business that typically employs fewer than 100 people and dominates the U.S. economy; about 99.7% of all U.S. businesses; significant contributor to private payroll (about 43%).

Gazelles

High-growth small businesses growing 20%+ annually and with at least $100,000 in annual sales.

Opportunity entrepreneur

An entrepreneur who starts a business by spotting a market opportunity.

Necessity entrepreneur

An entrepreneur who starts a business due to lack of alternative work opportunities.

Serial entrepreneur

An entrepreneur who repeatedly starts and grows businesses to a sustainable size.

Copreneurs

Entrepreneurial couples who work together as co-owners.

Encore entrepreneur

Entrepreneurs who start new ventures after retirement.

Intrapreneur

An entrepreneur within an existing organization, acting to create and implement new ideas or ventures.

Downsizing

The process of large companies reducing their workforce, which can create opportunities for new businesses.

Competitive advantage of small firms

Small firms’ ability to move quickly to exploit market opportunities and use modern technology to rapidly create products and services.

Global perception of entrepreneurs

Around 68% of working adults worldwide view entrepreneurs as having high status.

Emerging opportunities

Potential for entrepreneurship in regions like Eastern Europe, China, Vietnam, and economies transitioning from state control.

Benefits of entrepreneurship

Creating your own destiny, making a difference, reaching your potential, earning profits, contributing to society, and enjoying the work.

Drawbacks of entrepreneurship

Uncertainty of income, risk of losing investment, long hours, high stress, and potentially lower quality of life until established.

Feeding the entrepreneurial fire

Factors that stimulate entrepreneurial activity, including heroes, education, demographics, service economy shift, technology, the Internet, and international opportunities.

Lean startup

A method of developing a business idea with minimal resources, rapid experimentation, and customer feedback.

Pivot

Knowing when to change or adjust the business model in response to feedback or market changes.

Business plan

A formal document outlining the business idea, market, strategy, and financial projections.

Financial statements

Documents that report a business’s financial performance, such as income statements, balance sheets, and cash flow.

Critical thinking and problem solving

Key career skills involving analysis, evaluation, and finding effective solutions.

Written and oral communication

Skills for clear, effective communication in writing and speaking.

Teamwork and collaboration

Ability to work effectively with others to achieve shared goals.

Leadership

The ability to guide, motivate, and influence others toward a common goal.

Creativity

The ability to generate innovative ideas and solutions.

Ethics and social responsibility

Principles guiding ethical behavior and consideration of social impact in business.