ENTREPRENEURSHIP terms

Entrepreneur

A person who sells or produces products to make a profit and manages their own business.

Business plan

A formal statement of what a business wants to accomplish and how it intends to do so.

Target market

A specific group of people interested in purchasing a business's products or services.

Market research

A planned effort to gather information that helps entrepreneurs make informed decisions about their products and marketing.

Start-up capital

The costs or money needed to set up and run a business until it reaches profitability.

Start-up resources

Material and human resources required to launch a business.

Profit threshold / Break-even point

The point where total costs equal total sales, resulting in no profit or loss.

Operating costs

Costs incurred to run the business and produce its products.

Product specification

Standards that must be maintained in making a product, ensuring quality.

Quality control

The process of inspecting products to ensure they meet required standards.

Sustainable production

Using goods and services to enhance quality of life without harming the environment.

Profitable business

A business that meets an unmet market need and generates profit.

Trade mark/name

A specific identification that distinguishes a product from its competitors.

Stock control

The process of ensuring sufficient raw material for uninterrupted production.

Production costs

Expenses incurred to supply goods and services to customers.

Fixed costs

Costs that remain constant regardless of production levels.

Variable costs

Costs that may change based on production volume.

Overheads

Additional costs necessary for a business to operate.

Efficient production

Utilizing resources to increase productivity with minimal wastage.

Selling price

The sum of production costs and profit margin.

Mark up

The amount added to the cost price to cover expenses and generate profit.

Profit

The reward received by a business owner for investing in the business.

Cash flow projection (forecast)

A document showing the anticipated movement of money over a future period.

Financial feasibility study

An analysis determining if a business can succeed considering total costs and expected revenues.

Sustainable profitability

A business that consistently covers expenses and generates profit over time.

SWOT analysis

A method for assessing a company's goals by analyzing its strengths, weaknesses, opportunities, and threats.

Gross salary

Income before any deductions are made.

Net salary

Income after all deductions have been applied.

Competitive edge

Offering a better product than local competitors.

Work plan/implementation plan

A document outlining tasks required to achieve goals, considering available time and resources.

Marketing mix

The five elements (product, place, people, promotion, price) defining a product's market success.

Marketing strategy

A process focused on using resources optimally to increase sales and gain a competitive advantage.