Entrepreneurship Flashcards
Entrepreneurship
The acceptance of the risk of starting and running a business
Reasons why people become entrepreneurs
Opportunities, Independence, Profits, Challenge
What it takes to become an entrepreneur
Self-discipline, self-nurture, action-oriented, high level of energy, tolerance of uncertainty
Ideas offer opportunities when:
It satisfies the customers’ needs, the skills and resources are available to start a business, you can reach customers before competitors do, you can offer a price that is payable but high enough to sustain the business
Entrepreneurial Team
Team of experienced people from different areas of business who together form a management team to develop a new product
Micropreneurs
Entrepreneurs who do not set the goal of business growth
Challenges of working from home
Difficulty of getting new customers, abiding by government ordinances, time management, separating work and family, managing risk
Affiliate Marketing
Marketing strategy which rewards individuals or companies for every visitor the affiliate sends to its website
Intrapreneurs
Entrepreneurs working within an existing company
Enterprise Zones
Special areas that offer lower tax rates and other types of government support
Incubators
Enters which offer cheap offices and basic services to new businesses
Business Plan contains:
Description of: nature of the business, goals, target market, advantages in relation to competition, resources, qualifications of the owner(s)
Venture Capitalist
Invests in a new business in exchange for partial ownership
Small Business Administration (SBA)
Institution that gives advice to entrepreneurs in the form of management training and financial advice
Small Business Investment Company Program (SBIC)
Program which enables investment firms to finance small businesses
