Entrepreneurship and Business Failures

These flashcards cover key concepts related to entrepreneurship, business failures, and strategies for overcoming challenges in starting and running a business.

Business Failure

The termination of a commercial organization that ceases operations due to an inability to cover expenses and make a profit.

Affordable Loss

The amount of risk a person or company is willing to lose in pursuit of a project or idea.

Deviance in Entrepreneurship

When an entrepreneur disregards legal and ethical boundaries, leading to mismanagement of their venture.

Inattention in Business

Failure to focus or provide necessary oversight, causing neglect of important aspects of the business.

Intelligent Failure

Mistakes made during exploration, which provide valuable insights and lead to better outcomes in the future.

Bootstrapping

Building or starting a business with minimal funding, relying on personal resources and revenue.

Crowdfunding

Raising money from a large number of people, typically via the internet, to fund a new venture or project.

Utility Usage Model

A pricing model where customers pay based on the amount of product or service they consume.

Licensing Revenue

Income generated by allowing other parties to use one’s proprietary materials or branding in exchange for fees.

Sustainable Business Practices

Business methods that aim to minimize environmental impact and promote lasting ecological health.

Fear of Failure

A psychological state where the desire to avoid failure inhibits performance or decision-making.

Resilience in Entrepreneurship

The capacity to recover quickly from difficulties; essential for enduring business challenges.

Grit

Perseverance and passion for long-term goals, particularly important in overcoming obstacles in entrepreneurship.

Customer Acceptance

The willingness of potential customers to buy a new product or service, essential for startup success.

Venture Capital

Financing provided to startups and small businesses with perceived long-term growth potential.

Equity Crowdfunding

A method of raising capital in which investors receive shares of a company in return for their investment.