Vocabulary Flashcards
A small firm that has great prospects for growth
High Potential Ventures (Gazelles)
A small firm that provides substantial profits to its owner
Attractive Small Firm
A small firm that provides minimal profits to its owners
Microbusiness
Very small loans, often provided to entrepreneurs in developing countries
Microloans
A business with growth potential that is small compared to large companies in an industry, has geographically localized operations, is financed by only a few individuals, and has a small management team
Small business
An economically attractive and timely opportunity that creates value for interested buyers or end users
Entrepreneurial Opportunity
A person who relentlessly pursues an opportunity, in either a new or an existing business, to create value while assuming both the risk and the reward for his or her efforts
Entrepreneur
Doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them
Bootsrapping
An entrepreneur who brings a new firm into existence
Founder
An entrepreneur whose power is limited by a contractual relationship with a franchising organization
Franchisee
Two or more people who work together as entrepreneurs on one endeavor
Entrepreneurial Team
Entrepreneurial activity whose goal is to find innovative solutions to social needs, problems, and opportunities
Social Entrepreneurship
A knowledgeable person who can offer guidance based on experience in a given field
Mentor
A person who becomes an entrepreneur as a result of some severe hardship
Reluctant Enrepreneur
A person who becomes an entrepreneur to escape an undesirable job situation
Corporate Refugee
A change in how we fundamentally see a situation
Paradigm Shift
A personality that focuses on an already developed technical skill, wants to be left alone to get the job done, and is primarily concerned about the present
Technician Personality
A personality that is pragmatic and likes order and planning operations
Manager Personality
A personality that focuses on the business as a whole and providing results for the customer
Entrepreneur Personality
A specific group of customers with an identifiable but narrow range of product or service interests
Niche Market
Material assets and intangible assets qualities passed on to both heirs and society
Entrepreneurial Legacy
A microbusiness that permits the owner to follow a desired pattern of living
Lifestyle Business
A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances
Integrity
Individuals or groups who either can affect or are affected by the performance of the company
Stakeholders
A company’s ethical obligations to the community
Social Responsibilities
Original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents or copyrights
Intellectual Property
The belief that the ethical standards of one’s own country can be applied universally
Ethical Imperialism
The belief that ethical standards are subject to local interpretation
Ethical Relativism
Beliefs that provide a foundation for ethical behavior in a firm
Underlying values
Official standards of employee behavior formulated by a business owner
Code of ethics
A profitable company that responds to customers needs while showing reasonable concern for the environment
Sustainable Small Business
The effort to protect and preserve the environment
Environmentalism
Identification of potential new products or services that may lead to promising businesses
Opportunity Recognition
Readiness to act on existing, but unnoticed, business opportunities
Entrepreneurial Alertness
New business ventures created from scratch
Startups
Startup ideas centered around providing customers with an existing product or service not available in their market
New Market Ideas
Startup ideas involving new or relatively new technology, centered around providing customers with a new product
New Technology Ideas
To refocus or recreate a startup if the initial concept turns out to be flawed
Pivot
Startup ideas centered around providing customers with new or improved products or services
New Benefit Idea
A facility for making desirable discoveries by accident
Serendipity
The broad environment, encompassing factors that influence most businesses in a society
General Environment
The environment that includes factors that directly impact a given firm and all of its competitors
Industry Environment
The environment that focuses on the strength, position, and likely moves and countermoves of competitors in an industry
Competitive Environment
The basic inputs that a firm uses to conduct its business
Resources
Those organizational resources that are visible and easy to measure
Tangible Resources
Those organizational resources that are invisible and difficult to assess
Intangible Resources
A company’s routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes
Capabilities
Those capabilities that provide a firm with a competitive edge and reflect its personality
Core Capabilities
A benefit that exists when a firm has a product or service that is seen by its target market as better than those of competitors
Competitive Advantage
An assessment that provides a concise overview of a firm’s strategic situation
SWOT Analysis
A plan of action that coordinates the resources and commitments of an organization to achieve superior performance
Strategy
A plan of action that requires a firm to hold down its costs so that it can compete by charging lower prices and still make a profit
Cast-based Strategy
A plan of action designed to provide a product or service with unique attributes that are valued by consumers
Differentiation-based strategy
A plan of action that isolates an enterprise from competitors and other market forces by targeting a restricted market segment
Focus Strategy
A preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed
Feasibility analysis
A circumstance of development that alone could render a new business unsucessful
Fatal Flaw
A business model involving a business owner who licenses trademarks and methods to an independent entrepreneur
Franchise
The party in a franchise contract that specifies the methods to be followed and the terms to be met by the other party
Franchisor
An entrepreneur whose power is limited by a contractual relationship with a franchising organization
Franchisee
A franchise agreement granting the right to use a widely recognized product or name
Product and trade name franchising
A franchise arrangement whereby the franchisee obtains an entire marketing and management system geared to entrepreneurs
Business Format Franchising
The legal agreement between franchisor and franchisee
Franchise Contract
An independent firm or individual acting as a middleman or sales agent with the responsibility of finding new franchisees within a specified territory
Master Licensee
Ownership by a single franchisee of more than one franchise from the same company
Multiple-Unit Ownership
Individuals or firms that obtain the legal right to open several franchised outlets in a given area
Area Developers
The operation of a retail franchise within the physical facilities of a host store
Piggyback Franchising
The operation of several franchise organizations within a single corporate structure
Multibrand Franchising
Bringing two or more franchise brands together under one roof
Co-branding
Actions by franchisors to void the contracts of franchisees in order to sell the franchise to someone else and collect an additional fee
Churning
The franchisor’s selling of another franchise location within the market area of an existing franchisee
Encroachment
A detailed statement that provides the accepted format for satisfying the franchise disclosure requirements of the FTC
Franchise Disclosure Document
A rule that prescribes that the franchisor must disclose certain information to prospective franchisees
Franchise Rule
Specialized brokers that bring together buyers and sellers of businesses
Business Brokers
The exercise of reasonable care in the evaluation of a business opportunity
Due Dilligence
An agreement in which the buyer promises the seller that he or she will not reveal confidential information or violate the seller’s trust
Nondisclosure Agreement
The price at which the property would change hands between a willing buyer and willing seller, with both parties having reasonable knowledge of relevant facts
Fair Market Value
A group of people bound by a shared history and a commitment to share a future together, while supporting the development and well-being of individual members
Family
An organization in which either the individuals who established or acquired the firm or their descendants significantly influence the strategic decisions and life course of the firm
Family Business
A venture operated by a founding entrepreneur
Owner-Managed Business
A business in which children of the founder become owners and managers
Sibling Partnership
A business in third and subsequent generations, when children of the siblings take ownership and management positions
Cousin Consortium
The practice of employing relatives
Nepotism
Patterns of behaviors and beliefs that characterize a particular firm
Organizational Culture
Typical Fears include
Fear of Failure Fear of success Fear of commitment Fear of disappointing your parents Fear of disappointing others
Nonfinancial factors in a family firm that affect the commitment of family members to the business
Socioemotional Wealth
Couples teams who own and manage businesses
Co-Preneurs
Family members working in the firm are sometimes seen by relatives who work outside the company as predators, while family members outside the business are see as parasites, having ownership rights without contributing to its success
Predator/Parasite Conflict
An organized group of family members who gather periodically to discuss family related business issues
Family Council
A statement of principles intended to guide a family firm through times of crisis and change
Family Business Constitution
The process by which a more more experienced person guides and supports the professional progress of a new or less experienced employee
Mentoring
Passing ownership of a family business to the next generation
Transfer of ownership
A document that outlines the basic concept underlying a business and describes how
Business Plan
An abbreviated business plan that presents only the most important issues and projections for the business
Short Plan
A complete business plan that provides an in-depth analysis of the critical factors that will determine a firm’s success or failure along with all the underlying assumption
Comprehensive Plan
Company name, logo, tagline, contact information, copy number, date prepared, and disclaimer if needed
Cover Page
Listing of the key sections of the business plan
Table of contents
One to three page overview of the significant points, intended to motivate the reader to continue reading
Executive Summary
Key characteristics of the industry, including the different segments, and the niche where you plan to compare
Industry, Target Customer, and Competitive Analysis
Company Objectives, the nature of the business, its primary product or service, its current status and history, and the legal form of organization
Company Description
Justification for why people will buy the product or service, based on its unique features
Product/Service Plan
Marketing strategy, including the methods of identifying and attracting customers, selling approach, type of sales force, distributions channels, types of sales promotion and advertising, and credit and pricing policies
Marketing Plan
Operating or manufacturing methods, operating facilities, quality control methods, procedures to control inventory and operations, sources of supply, and purchasing procedures
Operations and Development Plan
Description of the management team, outside investors and/or directors, and plans for recruiting and training employees
Management Team
Any known inherent risks in the venture
Critical Risks
How much capital the entrepreneur needs and how the money will be used
Offering
Ways an investor and the entrepreneur may be able to harvest their business investment
Exit Strategy
Contemplated sources of financing; any historical financial statements, if available; pro forma financial statements for three to five years, including income statements, balance sheets, cash flow statements, and cash budgets
Financial Plan
Various supplementary materials and attachments to expand the reader’s understanding of the plan
Appendix of Supporting Documents
A section of the business plan that conveys a clear and concise overall picture of the proposed venture and creates interest in the venture
Executive Summary
A section of the business plan that describes the user benefits of the product or service and the type of market that exists
Marketing Plan
A sections of the business plan that offers information on how a product will be produced or a service provided, including descriptions of the new firm’s facilities, labor, raw materials, and processing requirements
Operations and Development Plan
