Vocabulary for Lecture Flashcards
A person who relentlessly pursues an opportunity, in either a new or existing business, to create value while assuming both the risk and the reward for his or her efforts.
Entreprenuer
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 an timely opportunity that creates value for interested buyers or end users.
Entrepreneurial Opportunity
Doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them.
Bootstrapping
A person who becomes an entrepreneur due to a hardship.
Reluctant Entrepreneur
A person who becomes an entrepreneur to escape an undesirable situation.
Refugee
An entrepreneur whose power is limited by the contractual relationship with a franchising organization.
Franchisee
A small firm that has great prospects for growth.
High-Potential Venture (Gazelle)
A small firm that provides substantial profits to its owner.
Attractive Small Firm
A small firm that provides minimal profits to its owner.
Microbusiness
A microbusiness that permits the owner to follow a desired pattern of living.
Lifestyle Business
A person with primarily technical skills and little business knowledge who starts a business.
Artisan Entrepreneurs
A person with both sophisticated managerial skills and technical knowledge who starts a business.
Opportunistic Entrepreneurs
Two or more people who work together as entrepreneurs on one endeavor.
Entrepreneural Team
A specific group of customers with an identifiable but narrow range of product or service interests.
Niche Market
Self-Reliance- the degree to which people believe that they have control over the outcome of events in their lives.
Internal Locus of Control
People who believe that their decisions and life are controlled by environmental factors which they cannot influence, or that chance or fate controls their lives.
External Locus of Control
A knowledgeable person who can offer guidance based on experience in a given field.
Mentor
Material assets and intangible qualities passed on to both heirs and their society.
Entrepreneural Legacy
An uncompromising adherence to doing what is right and proper. A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances.
Integrity
Questions of right and wrong. Legal and ethical considerations and conflicts of self-interest.
Ethical Issues
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, copyrights, trademarks, design rights, and trade secrets.
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 an individual or a firm.
Underlying Values
Official standards of employee behavior formulated by a business owner.
Code of Ethics
Entrepreneurial activity that provides innovative solutions for social issues.
Social Entrepreneurship
The effort to protect and preserve the environment.
Environmentalism
Identification of potential new products or services that may lead to promising business.
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.
Type A Ideas (New Market Ideas)
Startup ideas involving new or relatively new technology, centered around providing customers with a new product or service.
Type B Ideas (New Technology Ideas)
Startup ideas centered around providing customers with new or improved products or services or better ways of performing old functions.
Type C Ideas (New Benefit Ideas)
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 an entrepreneur can use to start and/or operate a 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 coordinate the use of its productive assets in order to achieve desired outcomes.
Capabilities
Those capabilities that distinguish a firm competitively and reflect its focus and personality.
Core Competencies
A benefit that exists when a firm has a product or service that is seen by its target market as better than that of competitors.
Competitive Advantage
An assessment that provides a concise overview of a firm’s strategic situation.
SWOT Analysis
A plan or 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.
Cost-based Strategy
A plan of action designed to provide a product or service with unique attributes that are valued by customers.
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 decision regarding the direction a firm will take in relating to its customers and competitors.
Strategic Decision
A preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed.
Feasibility Analysis
A circumstance or development that alone could render a new business unsuccessful.
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
The legal agreement between franchisor and franchisee.
Franchise Contract
A franchise agreement granting the right to use a widely recognized product or trademark.
Product and Trade Name Franchising
A franchise arrangement whereby the franchisee obtains an entire marketing and management system geared to entrepreneurs.
Business Format Franchising
An independent firm or individual acting as a middleman or sales agent with the responsibility of finding new franchisees within a specified territory.
Master License
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
Terminating a successful franchise operation in order to resell it and gain additional franchise fees.
Churning
Locating a new outlet or point of distribution too close to an existing franchisee, causing a material loss of sales.
Encroachment
A detailed statement providing information about the franchisor that satisfies the franchise disclosure requirements of the FTC.
Franchise Disclosure Document (FDD)
A rule that requires the franchisor to disclose certain information to prospective franchises.
Franchise Rule
The exercise of reasonable care in the evaluation of a business opportunity.
Due Dilligence
