entrepreneurship Flashcards
what is an entrepreneur
one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them
what are entrepreneur characteristics
- seek to be creative
- direct their drive to something for their benefit
- control their lines and provide the optimal situation for themselves
what is a common driver
entrepreneurs are determined by their personal characteristics, by WHO not WHAT they are
what is innovation
exploiting change as an opportunity to form a new business or service
- creating value and meaningful contribution
top ten reasons why businesses fail
- math isn’t right
- owners can’t get out of their head
- out of control growth
- poor accounting
- lack of cash cushion
- operational mediocracy
- operational inefficiencies
- dysfunctional management
- lack of succession plans
- declining market
what to do in order to avoid failure
- know your business
- prepare a business plan
- understand financial statement
- learn to manage people efficiently
what is systemic innovation
purposeful and organized search for changes and systematic analysis of the opportunities such changes might offer the economic or social innovation
what is intraprenuership
applying entrprenuerial mindset writhing an established organization
- like “inside entrepreneur”
what is crowdsourcing
practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people(esp. like an online community)
what is the entrepreneurship process
- entrprenueral mindset
- idea
- opportunity analysis
- feasibility analysis
- business plan
- funding
what is opportunity analysis
- determines how attractive an industry is overall as a “home” for a new business
- identifies possible niches a new entrant can occupy profitability
what is feasibility analysis
asking whether to continue with an idea, and whether the idea can create a successful business or not
- investigative tool
what is product/service feasibility analysis and financial analysis
P/A FA - degree to which things appeals to customers and and whether they are willing to purchase it while still making a profit
F FA - capital requirements, estimated earnings, and return on investments
what is a business plan
systematic evaluation of ventures chances of success and determines the risks facing a venture
- like a game plan for managing a business
- guides company by defining strategy and attracts lenders/investors
what is a financial forecast
the projected financial statements
- income stantement, balance sheet, cash flow, and capital expidentures
