Chapter 18 Flashcards
What is entrepreneurship?
Risk taking behavior that results in new opportunities
What is classic entrepreneur?
pursues opportunities other view as problems
What is a serial entrepreneur?
starts and runs business and nonprofits over and over again
What is first mover advantage ?
first to exploit a a niche or enter a market
What is a mompreneurs?
pursues business opportunities they spot as mothers
What is a social entrepreneur?
unique form of ethical entrepreneurship that seeks new ways to solve pressing social problems
What is a social entrepreneur?
take risks to find new find ways to solve pressing social problems such as poverty, literacy, illness, homelessness
Entrepreneurship is a way of what?
thinking
What is necessity based entrepreneurship?
people start a business because no other employment opportunities exist
What are personality traits of entreprenuers?
passion and action orientation, self-confidence, high need for achievement, independence
common myths about entreprenuers?
born not made gamblers money is key to success must be young degree in business
Why is retailing, services, and manufacturing attractive to entrepreneurs?
easy to enter, low initial financing, specific group of consumers, less heavy competition
small businesses succeed because of
vison, hard work, market opportunities, decision making, flexibility
What are small business types?
franchise, business model, startup, lean startup, family owned small businesses
What is a franchise?
one business owner sells to another the right to operate the same business in another location
What is a business model?
plan for making a profit by generating revenues that are grater then costs
What is a startup?
new and temporary venture that is trying to establish a profitable business model
what is a lean startup?
use open source software and free web services to contain costs while staying small and keeping operations simple
What are the 3 steps of the small business life cycle?
birth stage, maturity stage, and breakthrough stage
What is the birth stage ?
establishing firm, getting customers, fighting for existence and survival
what is the maturity stage?
refining the strategy, continuing growth, investing wisely and staying flexible
what is the breakthrough stage?
working on finances, becoming profitable, coping with growth and take off
What do you need to do to start a business?
have an idea, devise a plan, form an ownership, financial resources, decide if you will do an existing, start a new business, or buy a franchise
What are small business failures?
lack of experience and commitment, poor financial controls and leadership
What is a business plan?
a detailed statement of the rationale for the business and step-by-step explanation of how it will achieve its goals
What is an outline used for?
executive summary, industry analysis, descriptions of operations and company, milestones
What are the 3 legal forms of business ownership?
partnership, proprietorship, corporations
What is a sole proprietorship?
owned and managed by one individual
most popular form of organization
what is a partnership?
2 or more people that act as co-owners of a business
general partnership, limited partnership, joint ventures
What is a corporation?
separate legal entity created by the state
assets and liabilities are distinct from those of the owners of the corporation
LLC
what is debit financing?
borrowing money from another person, a bank or a financial institution
What is equity financing?
involves exchanging ownership shared for outside investment
what is venture capitalist?
involves making large investments in new ventures in return for an equity stake in the business
What is an angel investor ?
a wealthy individual willing to invest in return for equity in a new venture
What is crowd funding?
entrepreneurs starting new ventures go online to get startup financing from crowds of investors
What is an initial public offering?
An IPO is where shares of stock in the business are first sold to the public and begin trading on a public stock exchange
