Entrepreneurship Flashcards
What is entrepreneurship?
Entrepreneurship includes the creation or extraction of economic value. It is the act of being an entrepreneur, or the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits.
Who are entrepreneurers?
Entrepreneurers are contrarian value creators; they see economic value where others see heaps of nothing, and they see business opportunities where others see only dead ends
Traditional funding vs. crowdfunding
Traditional- large amounts from one, or a few, sources
Crowdfunding- many small sums from a large group of individuals
Why set up a business?
- sell innovative products
- compete against established businesses
What to do before starting a business?
- conduct market research
- draw up a business plan
How to raise capital?
- external: incubators, venture capital firms, business angels, investors, banks, government loan, government grant, crowdfunding
- internal: founder’s capital / savings
Business plan
is a guide—a roadmap for a business that outlines what a business’s goals are and details how these goals will be achieved.
Grant
A financial award given by the state or local government, which is not expected to be repaid.
Venture
A business project or activity, especially
one that involves risks.
Venture capital firm
An investment company that invests capital in potentially risky but profitable start-ups for above-average returns.
Business angel
A rich investor who provides capital for a start-up in exchange for ownership equity or a stake in the company. This private individual usually becomes involved in the project by acting as a guide or mentor, as well as by providing connections to their larger network
Feasibility
Ability to complete a project successfully, taking into account the possible negative and positive outcomes before investing too much time and money.
Incubator
An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services and networking connections.
Validity
The state of being well-founded.
Stake
The amount that someone has invested in a company often expressed as a percentage of the total share capital (=money invested in a business in the form of shares)
