Ch. 5 BUSN

Entrepreneurship

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

Social Enterprises/Ventures

New organizations started in response to needs within the community.

Creative Destruction

A process where the entrepreneur creates an opportunity through innovation and then takes advantage of it, essentially destroying the previous way things were done.

Entrepreneurial Alertness

The ability of entrepreneurs to perceive opportunities and imbalances in the marketplace.

Entrepreneurial Ventures vs. Small Businesses

Entrepreneurial ventures pursue opportunities with innovative practices and aim for growth, while small businesses are independently owned and do not necessarily engage in innovation.

Recognition Strategy

A method for finding opportunities when both supply and demand are known.

Self-Employment

Refers to individuals who work for profit or fees in their own business.

Visionary Leadership

The ability of an entrepreneur to articulate a coherent, inspiring, and attractive vision of the future for the organization.

Feasibility Study

An analysis designed to determine the viability of a proposed entrepreneurial venture.

Timmons Model

A model that considers opportunities, teams, and resources as critical factors for entrepreneurial success.

Employee Empowerment

Granting employees the power to make decisions and act independently to encourage motivation and adaptability.

Risk Tolerance

An individual's willingness to take chances and accept uncertainty in decision making.

Contingency Plan

A plan to address potential crises and unforeseen circumstances that may impact the venture.

Innovative Culture

An environment that encourages creativity, flexibility, and the pursuit of new opportunities.

Opportunity Recognition

The process of identifying and perceiving viable business opportunities.

Bootstrapping

Starting with minimal resources and gradually growing a venture.

Value Proposition

The articulation of the benefits, costs, and value that an organization can deliver to customers.

Market Opportunity

A favorable condition that allows for new business ventures to arise.

Business Model

A plan describing how a company creates, delivers, and captures value.

Startup

A temporary organization designed to search for a repeatable and scalable business model.

Growth Strategy

A planned approach to increasing a business's size, capacity, or market share.

Exit Strategy

The planned approach for an entrepreneur to leave their business venture.