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Short Notes (Entrepreneurship)
New entry: Offering a new product to an established or new market, offering an established product to a new market, or creating a new organization.
Entrepreneurial strategy: The set of decisions actions and reaction- that first generates and then exploit over time, a new entry.
Entrepreneurial resources: The ability to obtain, and then recombine, resources into a bundle that is valuable, rare and inimitable.
Market knowledge: Possession of information, technology, know-how and skills that provide insight into a market and customers.
Technological knowledge: Possession of information, technology, know-how and skills that provide insight into ways to create new knowledge.
Window of opportunity: The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry.
Error of commission: Negative outcome from acting.
Error of omission: Negative outcome from not acting.
Key success factor: The requirements that any firm meet in order to successfully compete in a particular industry.
Emerging industries: Industries that have been newly formed and are growing.
Demand uncertainty: Considerable difficulty in accurately estimating the potential size of the market, how fast it will grow and the key dimensions along which it will grow.
Technological uncertainty: considerable difficulty in accurately assessing whether the technology will perform and whether alternate technologies will emerge and leapfrog over current technologies.
Load time: The grace period in which the first mover operates in the industry under conditions of limited competition.
Switching costs: The costs that must be borne by customers if they are to stop purchasing from the current supplier and begin purchasing from another.
Me-too strategy: Copying products that already exist and attempting to build an advantage through minor variations.
Regulation D: A Securities and Exchange Commission (SEC) regulation governing private placement exemptions. Regulation D allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. Private placement: It is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.
Limited partnership: A party in a partnership agreement that usually supplies money and has a few responsibilities.
General partner: The overall coordinating party in a partnership agreement.
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Short Notes (Entrepreneurship)
Debt financing: It is raising money through selling bonds, notes, or mortgages or borrowing directly from financial institutions.
Equity financing: The act of raising money for company activities by selling common or preferred stock to individual or institutional investors.
Internal financing: Surplus funds generated through a firm's operations and available for capital investment. These funds are shown as retained-earnings and depreciation in the firm's financial statements.
External financing: Financing for a company that comes from a new issue of stocks or bonds. That is, external finance occurs when a company looks outside itself to raise capital; rather than using its retained earnings or depreciation, it issues securities. See also: Internal Finance.Breakeven: Volume of sales where the venture neither makes a profit nor incurs a loss.
Owner equity: The amount owners have invested and retained from the venture operations.
Pro forma balance sheet: Summarizes the projected assets, liabilities and net worth of the new venture.
Pro forma cash flow: Projected cash available calculated from projected cash accumulations minus projected cash disbursements.
Pro forma income: Projected net profit calculated from projected revenue minus projected costs and expenses.
Market segmentation: Process of dividing a market into definable and measurable groups for purposes of targeting marketing strategy.
Target market: Specific group of potential customers toward which venture aims its marketing plan.
Situation analysis: Describes past and present business achievements of new venture.
Marketing mix: Combination of product, price, promotion, and distribution and other marketing activities needed to meet marketing objectives.
Marketing plan: written statement of marketing objectives, strategies and activities to be followed in business plan.
Financial plan: projections of key financial data that determine economic feasibility and necessary financial investment commitment.
Organizational plan: Describes form of ownership and lines of authority and responsibility of members of new venture.
Industry analysis: Reviews industry trends and competitive strategies.
Environmental analysis: Assessment of external uncontrollable variables that may impact business plan.
Business plan: Written document describing all relevant internal and external elements and strategies for starting a new venture.
Product lifecycle: The stages each product goes through from introduction to decline.
Parameter analysis: Developing a new idea by focusing on parameter identification and creative synthesis.
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Short Notes (Entrepreneurship)
Big dream approach: Developing a new idea by thinking without constraints.
Attribute listing: developing a new idea by looking at the positives and negatives.
Collective notebook method: Developing a new idea by group members regularly recording ideas.
Forced relationship: Developing a new idea by looking at product combinations.
Free association: Developing a new idea through a chain of word associations.
Checklist method: Developing a new idea through a list of related issues.
Gordon method: Method for developing new ideas when the individuals are unaware of the problem.
Brain writing: It is a form of written brainstorming.
Reserve brainstorming: A group of method for obtaining new ideas focusing on the negative aspect.
Brainstorming: Process for generating creative ideas and solutions through intensive and freewheeling group discussion.
Problem inventory analysis: A method for obtaining new ideas and solutions by focusing on problems.
Focus group: Groups of individuals providing information in a structured format.
International entrepreneurship: An entrepreneur doing business across his or her national boundary.
Balance of payment: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world
GATT: The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade which was established in 1947 under US leadership. The objective of GATT is to liberalize trade by eliminating or reducing tariffs, subsidies and import quotes among the member nations.
Corporate culture: The environment of a particular organization.
Departure points: The activities occurring when the venture is started.
Professional support network: Individuals who help the entrepreneur in business activities.
Moral support network: Individuals who give psychological support to an entrepreneur.
Role models: Individuals influencing an entrepreneurs career choice and style.
Entrepreneurial intentions: The motivational factors that influence individuals to peruse entrepreneurial outcomes.
Entrepreneurial self efficacy: The conviction that one can successfully execute the entrepreneurial process.
Perceived desirability: the degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes.
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Short Notes (Entrepreneurship)
Licensing: Involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment or a royalty.
Turn key project: A method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructures for a business and then turns it over to local owners.
Management contract: A no equity method of international business in which an entrepreneur contracts his or her management technique and skills to a (foreign) purchasing company.
Joint venture: The cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise.
Synergy: A state in which two or more things work together in a particularly fruitful way that produces an effect greater the sum of their individual effects. Expressed also as "the whole is greater than the sum of its parts."
Horizontal merger: A type fo merger combining two firms that produce one or more of the or closely related products in the same geographic area.
Vertical merger: A type of merger combining two or more firms in successive stages of production.
Product extension merger: A type of merger in which acquiring and acquired companies have related production and distribution activities but do not have products that compete directly with each other.
Market extension merger: A type of merger combining two firms that produce the same products but sell them in different geographic markets.
Diversified activity merger: A conglomerate merger involving the consolidation of two essentially unrelated firms.
Entrepreneur: An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.
Entrepreneurship: The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
Intrapreneur: An Intrapreneur is a person who has an entrepreneur skill set but works within an organization, enterprise, or venture. A person employed to work independently within a company in order to introduce innovation and to revitalize and diversify its business.
Intrapreneurship: It is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship applies the 'start up' style of management (characterized by flexibility, innovation, and risk taking) to a secure and stable firm. The objective is to fast track product development (by circumventing the bureaucracy) to take advantage of a new opportunity or to assess feasibility of a new process or design.
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Short Notes (Entrepreneurship)
Business Incubators: Facility established to nurture young (startup) firms during their early months or years. It usually provides affordable space, shared offices and services, hand-on management training, marketing support and, often, access to some form of financing.
Non-compete agreements: An agreement between two parties, typically an employee and employer, where the employee agrees not to use information learned during employment in subsequent business efforts for a set period of time.
Outsourcing: A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.
Contingency plan: a course of action to be followed if a preferred plan fails or an existing situation changes.
Reactive pricing vs. proactive pricing: Reactive pricing is marketing undertaken in response to the actions of a competitor. A company using a proactive pricing strategy uses new ideas to market a product.
Need achievement theory: It refers to an individual's preference for success under conditions of competition.
Factoring: Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.
Odd pricing: Psychological pricing method based on the belief that certain prices or price ranges are more appealing to buyers. Establishing a price that is immediately below an even amount. For example, a shirt is priced at $17.99 rather than $18.00.
Role model: A person who serves as a model in a particular behavioral or social role for another person to emulate.
Value analysis: Technique used by an industrial buyer to identify the least costly combination of raw materials or components required to produce a product, without any reduction in the quality of the finished good.
Departure point: a place from which an enterprise or expedition is launched.
Trademark: A symbol, word, or words legally registered or established by use as representing a company or product.
Facility planning: Process of determining the purposes of facilities and the means (activities, procedures, resources, etc.) for attaining them.
Owner equity: Ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.
Corporate culture: The beliefs and behaviors that determine how a company's employees and management interact and handle outside business transactions.
Dumping: In international trade, the export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market.
Adoptive entrepreneurs: Such entrepreneurs don’t innovate; they copy technology or technique of others.
Type “A” behavior: Pattern of behavior characterized by competitiveness, a sense of urgency, impatience, perfectionism, and assertiveness, and possibly associated with an increased risk of heart disease.
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Short Notes (Entrepreneurship)
R & D: Discovering new knowledge about products, processes, and services, and then applying that knowledge to create new and improved products, processes, and services that fill market needs.
Feasibility study: An analysis of the ability to complete a project successfully, taking into account legal, economic, technological, scheduling and other factors.
Variety store: a retail store that carries a wide variety of merchandise especially of low unit value.
Copyright: Copyright is a legal concept, enacted by most governments, giving the creator of an original work exclusive rights to it, usually for a limited time. Generally, it is "the right to copy", but also gives the copyright holder the right to be credited for the work, to determine who may adapt the work to other forms, who may perform the work, who may financially benefit from it, and other related rights.
Bootlegging: To produce, distribute, or sell without permission or illegally:
Entrepreneur: An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.
Entrepreneurship: The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
Intrapreneur: An Intrapreneur is a person who has an entrepreneur skill set but works within an organization, enterprise, or venture. A person employed to work independently within a company in order to introduce innovation and to revitalize and diversify its business.
Intrapreneurship: It is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship applies the 'start up' style of management (characterized by flexibility, innovation, and risk taking) to a secure and stable firm. The objective is to fast track product development (by circumventing the bureaucracy) to take advantage of a new opportunity or to assess feasibility of a new process or design.
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