quizlet chapter 3 Flashcards
What is an entrepreneurial startup?
Building a scalable business model (Including innovation, growth-orientation, and funding)
What are some common misconceptions about entrepreneurship?
(1) You must follow the Silicon Valley Model
(2) Funding = Venture Capital (A common method of funding is bootstrapping).
(3) It is all about having great ideas.
What does it take for an entrepreneur to be successful?
(1) A good team
(2) Something customers ACTUALLY want (A good idea vs. something that solves a problem)
(3) Financial Savvy - Spend as LITTLE money as possible (Ramen Profitability)
It also helps to have good timing, experience, and the knowledge than idea is not enough.
What is a growth-oriented entrepreneur?
An entrepreneur who seeks to…
(1) create and scale up businesses that will drive productivity growth,
(2) create new employment,
(3) increase innovation, or
(4) promote business internalization.
What is a multi-preneur?
Entrepreneurs who have multiple businesses or business projects going on at once
What is an intra-preneur?
A manager within a company who promotes innovative product development and marketing
What is the purpose of a business plan?
Used to..
(1) create an effective strategy for growth,
(2) to determine future financial needs,
(3) to attract investors
Differentiate between debt and equity.
Debt: Borrowing money to be repaid with interest
Equity: Raising money by selling interests in the company
Equity involves giving up control of the company; therefore, many people prefer to go into debt over establishing equity in order to maintain control.
Angel Investors:
Affluent individuals who invest their own money startup into ventures
Venture Capital:
Investors employed by a risk capital company who invest other people’s money into established businesses
Seed Capital:
Money raised to begin developing an idea for a business or a new product
A business plan is required to get seed-capital. This form of funding focuses on startups.
