Q1: Fundamentals of Entrepreneurship Flashcards
Entrepreneurship: A Definition
Entrepreneurs are business owners who seek to generate value, through the creation and expansion of economic activity, by identifying and exploiting new products, processes and markets
Enterprise meaning
An alternative term for a business or firm, as in the widely used term ‘small and medium-sized enterprise’ (SME).
Social enterprises meaning
trading organisations that serve a primary social purpose, and which can take a variety of legal forms, including cooperative, a limited company and a community interest company.
Enterprise culture meaning
A political project designed to encourage an increase in entrepreneurial activity and a corresponding decrease in the
role of the state in regulating and intervening in the economy.
Intrapreneur / Corporate Entrepreneur
A person act entrepreneurial inside of an existing organisation.
Rural Entrepreneur
Entrepreneurs who operate businesses in the countryside. This can be agriculture or food
manufacturing and rural crafts.
entrepreneurial thinking
The distinctive set of thought processes that drive entrepreneurial processes.
E-preneur
Entrepreneurs who run the business completely or that depend on the internet.
Ecopreneur
An Entrepreneur who creates a business with the aim of tackling environmental problems.
Lifestyle Entrepreneur
A person who has set up a small business in order to pursue a personal interest such as a craft or a sporting activity. They pursue a reasonable income and are not pursuing maximal business growth.
Portfolio entrepreneur
An entrepreneur who has multiple companies inside of his portfolio. He does this during the same time so he has multiple companies at the same time.
Technology Entrepreneur
An Entrepreneurs describes a person who has founded a new venture in order to develop some form
of technology/biotechnology/nanotechnology and other applied sciences.
Social entrepreneur
An Entrepreneur who initiates a larger programme of social change. The purpose is to address social
or environmental problems, rather than targeting for commercial goals.
Serial Entrepreneur
An Entrepreneur who creates a business, grows it and then sells it. He then creates a new business
and repeats this cycle.
cic
Community Interest Company
Key dimentions of the opp business model
proposition, people, place, process, profit
Drivers of the opp business model
personal, societal, commercial, legal, technological
OBM
Opp business model
Tuckman model
forming, storming, norming, performing and adjourning
forming, storming, norming, performing and adjourning
Tuckman model
Entrepreneurial teams
can be defined as two or more people who are actively collaborating in the founding of a venture in which they have a direct financial and/or personal stake.
CRM
customer relations management
Certification
the third-party confirmation via audit of whether an organisation, product, or individual conforms to the criteria laid out in a recognised standard or scheme.
Accreditation
independent third-party recognition that an organisation has the competence and impartiality to perform specific technical activities such as certification, testing and inspection.
catch up entrep.
i existing market, tried and tested
frontier entrepre., creative destructors
something new ir commertializina
free enterprise
a liberal market economy with low levels of government intervention
enterprise culture
acapitalistsociety in which taking on financial risks in the hope of profit is encouraged
innovative entrepreneurs
who create something new (e.g. a novel technology, product, or business model) and go on to commercialise it in the marketplace
replicative entrepreneurs
a much larger category of people who set up businesses based on tried-and-tested business models and sell conventional products and
services to existing markets
incessant
nepaliaujamas
bricolage
construction achieved by using whatever comes to hand, DAR EFFECTUATION
FMCGs
fast moving consumer goods
value constellation’
take a commercial idea beyond the binary buyer-seller value chain to more complex, symbiotic transactional webs among multiple participants, each of which may create and consume value
sifting through
to go through especially to sort out what is useful or valuable
due diligence
a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential
limited company
akcinė bendrovė,
a private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invested.
option pool
what owners set aside for employees
SAFE
simple agreement for future equity
Convertible note
a type of short-term debt that converts into equity, typically in conjunction with a future funding round.
down rounds
occurs when a company raises funds at a valuation that is lower than its valuation in a previous funding round. This typically indicates that the company is experiencing challenges, such as slower growth, missed targets, or changing market conditions.
Preferred stock
a type of equity security that combines features of both debt and common stock.
CVC
Corporate Venture Capital. It refers to the investment of corporate funds directly into external startup companies. Unlike traditional venture capital, CVC is driven not only by financial returns but also by strategic objectives.
anti-dilution
mechanism used in investment agreements to protect existing shareholders from having their ownership percentage diluted when a company issues new shares at a lower valuation than previous funding rounds.
pay-to-play
a clause in venture capital investment agreements designed to encourage existing investors to participate in future funding rounds, particularly during down rounds.
liquidation preferences
determine how proceeds from a company’s liquidation (such as in the event of a sale, merger, or bankruptcy) are distributed among shareholders. This clause is commonly included in venture capital deals to protect investors.
institutional thickness
a measure of the degree to which a geographic location is capable of supporting productive economic activity
sunk capital investments
funds spent on assets or projects that cannot be recovered once invested, regardless of future outcomes. These investments are irreversible and should not influence future decision-making because the money has already been spent.
Minimum Efficiency Scale (MES)
The smallest level of production at which a company achieves the lowest possible average cost per unit.
Economies of Scale
Cost advantages a company experiences as production increases, leading to lower average costs per unit.
Economies of Scope
Cost advantages gained by producing a variety of goods or services together rather than separately.
NIH syndrome
Not invented here (NIH) is the tendency to avoid using or buying products, research, standards, or knowledge from external origins.
Entrepreneurial creativity
‘the generation and implementation
of novel, appropriate ideas to establish a new venture
george doriot
father of VC
higher IRR
faster returns
VC are also more likely to look for an exit through
an initial public listing (IPO) or trade sale to a larger company.
