Entrepreneurial Management Reviewer

These flashcards cover key concepts from Entrepreneurial Management, including estimating and financing funds, as well as challenges and strategies in entrepreneurship.

Estimating Funds

The process of determining the financial needs of a project or business.

Forecasting

Predicting future financial needs based on sales volume, production costs, and operating expenses.

Capital Budgeting

Analyzing and selecting long-term investments that align with organizational goals.

Working Capital Management

Ensuring sufficient short-term assets to cover daily operational expenses.

Cost of Finance

Evaluating the various sources of finance and their associated costs.

Financial Statements

Projected financial documents that help understand the overall financial impact.

Debt Financing

Borrowing money from banks or through the issuance of bonds.

Equity Financing

Raising capital by selling ownership shares in the business.

Grants and Subsidies

Financial support obtained from government agencies or non-profit organizations.

Retained Earnings

Using profits generated by the business for reinvestment.

Debt-to-Equity Ratio

A financing strategy that balances the proportion of debt and equity financing.

short term vs long term financing

choosing the appropriate

maturity of financing (e.g., loans, leases) to match the duration of the project

or investment.

RISK ASSESSM

risk assessment

evaluating the potential risks associated with different

financing options and making informed decisions based on risk tolerance.

Cash Flow Management

Monitoring and managing the movement of cash in and out of the business.

investment decisions

allocating funds to various assets or projects to

maximize returns and achieve financial goals.

earning management

deciding on the allocation of profits, whether

to reinvest, distribute to shareholders, or allocate to other priorities.

access to capital

Entrepreneurs often struggle to secure funding,

whether from investors, banks, or personal savings. This limits their

ability to invest in product development, marketing, or scaling

cash flow management

Managing cash flow is critical for daily

operations. Inconsistent income and high expenses can jeopardize

business stability

credit accessibility

y: Limited access to credit or unfavorable loan terms

can deter business expansion and affect operational efficiency.

customer loyalty

New entrants must compete with established brands

that already have a loyal customer base.

product and service differentiation

Entrepreneurs must find unique

selling propositions to stand out in a saturated market.

pricing pressure

To attract customers, they may lower prices, affecting

profit margins.

globalization

Competing not just locally but globally adds pressure on

quality, service, and innovation to meet global standar

compliance cost

Navigating complex regulations can be costly and

time-consuming, often overwhelming new entrepreneurs who have

limited experience with laws and paperwork.

licensing requirements

Many industries require specific licenses and

permits, which can be difficult and expensive to obtain.

legal liabilities

Entrepreneurs may face challenges related to labor

laws, tax regulations, and industry-specific obligations, often needing

legal guidance to remain compliant.

talent acquisition

Finding and retaining skilled employees is a critical

challenge. Startups often compete with larger firms that offer better

compensation and job security.

employee turnover

High turnover disrupts operations and impacts

customer experience, morale, and productivity.

management skill

Many entrepreneurs lack experience in hiring,

training, and managing a team, which

worklife balance

Entrepreneurs often struggle to maintain healthy

boundaries and schedules.

mental and emotional strain

The pressure to succeed, financial risks,

and decision-making responsibilities increase the likelihood of burnout.

decision fatigue

The need to constantly make important decisions can

drain mental energy and impair judgment

isolation

The entrepreneur journey can be lonely, making mental

wellness a top concern. This includes a need for mentorship, networks,

and emotional support system

Opportunity Recognition

A process through which entrepreneurs identify potential methods of growing their ideas or starting new ventures.

Opportunity Cost

The value of what must be given up in order to obtain something else.

opportunity

– a favorable set of circumstances that creates a chance for

something positive to happen or to achieve a desired goal.

Maslow’s Hierarchy of Needs

A theory in psychology that lists human needs in a hierarchy, from physiological needs to self-actualization.

Environmental Scanning

A component of the global environment analysis to understand external factors affecting a business.

Market Analysis

A thorough examination of the target market covering customer demographics, competition, and industry trends.

Business Plan

A written description of the future of a business, detailing plans and methods to achieve goals.

Licensing Requirements

Specific licenses and permits required to operate in various industries.

Critical Factors for New Venture Development

Key elements necessary for the successful establishment and growth of a new business.

Return on Investment (ROI)

A measure of the profitability of an investment, usually expressed as a percentage.