Vocabulary from ch.1 and ch.2

Question 1

Career Entrepreneur

Answer 1

Someone who takes on the daily management as the owner of
the venture, accepting, and perhaps enjoying, the daily risks and rewards of managing and building the venture

Question 2

divergent thinking

Answer 2

process of generating as many ideas as possible, even when those ideas do not seem logical; the list of ideas can be
conflicting, diverse, and disparate

Question 2

entrepreneur

Answer 2

someone who identifies an idea that no one else has acted on or identified; small business ownership and franchising are also entrepreneurial options

Question 3

disruptive technology

Answer 3

technology that once introduced, displaces established patterns, processes, and systems previously accepted as normal or accepted methods

Question 4

entrepreneurial
mindset

Answer 4

solving a problem, and a willingness to move forward to advance that idea

Question 4

due diligence

Answer 4

conducting the necessary research and investigation to make informed decisions that minimize risk

Question 4

serial entrepreneur

Answer 4

entrepreneur who becomes involved in starting multiple entrepreneurial ventures

Question 4

SMART goals

Answer 4

well-structured and defined goals that are specific, measurable, achievable, realistic and timely

Question 5

social entrepreneur

Answer 5

entrepreneur who has an interest in solving a social, environmental, or economic problem

Question 6

value proposition

Answer 6

summary describing the benefits (value) customers can expect from a particular product or service

Question 7

vision statement

Answer 7

picture of what the venture will become in the future or what the venture will grow into

Question 8

business model

Answer 8

plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how
income will be generated through this process

Question 9

cash flow

Answer 9

money collected by the business through revenue and funding versus money disbursed by the business through expenses

Question 9

capitalism

Answer 9

freedom to make decisions and own property as well as benefit from their own efforts, with government playing a secondary role in oversight

Question 10

cash management

Answer 10

management of cash inflows and outflows to support cash needs of the venture

Question 11

corporate entrepreneurship

Answer 11

development of new ideas, opportunities, or ventures through formal research and development processes that focused on the
corporation’s strategy and goals

Question 12

creative destruction

Answer 12

theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment

Question 13

e-commerce

Answer 13

electronic transactions, particularly over the Internet, for the exchange of goods and services

Question 14

entrepreneurial process

Answer 14

set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture

Question 14

entrepreneurial journey

Answer 14

your exploration to discover if entrepreneurship is right for you

Question 15

entrepreneurial spirit

Answer 15

describes a quality of those individuals who are productive self-starters focused on making changes happen

Question 15

entrepreneurial venture

Answer 15

any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not
previously been established

Question 16

framework

Answer 16

structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation
and validation, and brainstorming

Question 17

independent contractor

Answer 17

to an employee without being part of the payroll for the contracting business, and who pay their own taxes and pay for
their own benefits

Question 17

franchising

Answer 17

form of licensing that allows the business (franchisor) to share its business model to expand through various distributors
(franchisees) for a fee

Question 18

intrapreneur

Answer 18

employee who acts as an entrepreneur within an organization, rather than going solo

Question 19

innovation

Answer 19

new idea, process, or product, or a change to an existing product or process

Question 20

patent

Answer 20

significant decision point or significant accomplishment patent legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period

Question 20

situational opportunity

Answer 20

one that becomes available, depending on factors such as where you work, your family obligations, your idea or invention, your
unique creative expression, or a recent career search or job change

Question 21

soft launch (or soft open)

Answer 21

launching a venture for a limited time frame or audience to gain experience, insights, and feedback about the target market or consumer

Question 22

target market

Answer 22

specific group of consumers for which a company seeks to provide a good or service

Question 23

venture

Answer 23

startup company or organization that conducts business or is created to satisfy a need

Question 24

vertical integration

Answer 24

strategy of gaining control over suppliers of raw materials and distributors of finished products to expand or control the relevant
supply chain