glossary R-Y

Question 1

relevant industry experience

Answer 1

Experience in the same industry as an entrepreneur’s current venture that includes a
network of industry contacts and an understanding of the subtleties of the industry. (343)

Question 2

resources

Answer 2

The inputs a firm uses to produce, sell, distribute, and service a product or service. (160)

Question 3

revenue streams

Answer 3

A description of how a firm makes money. (162

Question 4

rewards-based crowdfunding

Answer 4

This type of funding allows entrepreneurs to raise money in exchange for some type of
amenity or reward. (390

Question 5

salary-substitute firms

Answer 5

Small firms that yield a level of income for their owner or owners that is similar to what they would earn when working for an employer (e.g., dry cleaners, convenience stores, restaurants, accounting firms, retail stores, and hairstyling salons). (45)

Question 6

service

Answer 6

An activity or benefit that is intangible and does not take on a physical form, such as an airplane trip or advice from an attorney. (422

Question 7

sole proprietorship

Answer 7

The simplest form of business organization involving one person, in which the owner maintains complete control over the business and business losses can be deducted against the owner’s personal tax return. (277)

Question 8

solo entrepreneurs

Answer 8

Entrepreneurs who identified their business idea on their own. (87)

Question 9

standard business models

Answer 9

Models that depict existing plans or recipes firms can use to determine how they will create,
deliver, and capture value for their stakeholders. (151)

Question 10

target market

Answer 10

The limited group of individuals or businesses
that a firm goes after or tries to appeal to at a certain point in time. (118, 158

Question 11

trademark

Answer 11

Any work, name, symbol, or device used to
identify the sources or origin of products or services and to distinguish those products and services from others. (463)

Question 12

triggering event.

Answer 12

The event that prompts an individual to become an entrepreneur (e.g., losing a job, inheriting
money, accommodating a certain lifestyle). (52

Question 13

value

Answer 13

Relative worth, importance, or utility

Question 14

value-based pricing

Answer 14

A pricing method in which the list price
is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion. (424

Question 15

variable costs

Answer 15

The costs that are not fixed that a company
incurs as it generates sales. (164, 236, 495)

Question 16

venture capital

Answer 16

The money that is invested by venture capital firms in start-ups and small businesses with exceptional growth potential. (383)

Question 17

window of opportunity

Answer 17

The time period in which a firm or an entrepreneur can realistically enter a new market. (73)

Question 18

yield rate

Answer 18

The percentage of investment opportunities that
are brought to the attention of angel investors that result in an investment. (382

Question 19

Strategic (Causal) rationality

Answer 19

• Begins with a pre-determined goal and a given set of means
• Seeks to identify the optimal (fastest, cheapest, most efficient
  etc.) alternative to achieve the given goal
• Some where inbetween the two rerasoning new means are generated from given means and goal

Question 20

Entrepreneurial (Effectual) reasoning

Answer 20

• Begins with a given set of means, imagend end
  -Allows goals to emerge
  contingently over time from the varied imagination and diverse
  aspirations of the founders and the people they interact with

Question 21

segment

Answer 21

is a delimited group of buyers or potential buyers with certain attributes in
common such as need, usage, size, industry,
buying behavior, lifestyle or a combination of these attributes

Question 22

PESTEL

Answer 22

Political
Economical
Socio-cultural
Technological
Environmental
Legal

Question 23

SWOT

Answer 23

Internal: Strengths Weaknesses
external: Opportunities Threats
Positive: Strengths, Opportunities
Negative; Weaknesses, Threats

Question 24

Market analysis

Answer 24

1 segmentation
2 targeting
3 positioning

Question 25

A viable business opportunity needs to be..

Answer 25

(1) attractive, (2) timely, (3) durable, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end-user.