Chapter 7 Flashcards
Franchising
an entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location
Transaction Fee Model
charging fees for goods and services
Advertising Support Model
charging fees to advertise on a site
Intermediary Model
charging fees to bring buyers and sellers together
Affiliate Model
charging fees to direct site visitors to other companies’ sites
Subscription Model
charging fees for site visits
Social Entrepreneurship
Leveraging resources to address social problems
Social enterprises
Organization that applies business models and leverages resources in ways that address social problems
Business Incubators
protected environments for new, small businesses (offer things like low rent and shared costs)
Initial Public Offering (IPO)
sale to the public, for the first time, of federally registered and underwritten shares of stock in the company
Opportunity Analysis
a description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital
Business Plan
a formal planning step that focuses on the entire venture and describes all the elements involved in starting it
Legitimacy
people’s judgement of a company’s acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values
Social Capital
goodwill stemming from your social relationships; a competitive advantage in the form of relationships with other people and the image other people have of you
Qualities of entrepreneurs
Commitment and determination, leadership, opportunity obsession, tolerance of risk ambiguity and uncertainty, creativity self-reliance and ability to adapt, and motivation to excel
