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Entrepreneurship
Accepting the risk of starting and running a business TERM 2
WHY TAKE the RISK?
DEFINITION 2 Opportunity Profit Independence Challenge TERM 3
WHAT DOES IT TAKE to be an
ENTREPRENEUR?
DEFINITION 3 Self-directed, Self-nurturing, Action-oriented, Highly energetic, Tolerant of uncertainty TERM 4
An IDEA is a GOOD OPPORTUNITY IF
DEFINITION 4 It fills customers needs, You have the skills and resources to start a business, You can sell the product or service at a reasonable price and still profit, You can get your product or service to customers before the window of opportunity closes, You can keep the business going TERM 5
Merger
DEFINITION 5 The result of two firms joining to form one company
Acquisition
One companys purchase of the property and obligations of another company TERM 7
Vertical Merger
DEFINITION 7 Joins two firms in different stages of related business TERM 8
Horizontal Merger
DEFINITION 8 Joins two firms in the same industry and allows them to diversify or expand their products TERM 9
Conglomerate Merger
DEFINITION 9 Unites firms in completely unrelated industries in order to diversify business operations and investments TERM 10
Leveraged Buyout (LBO)
DEFINITION 10 An attempt by employees, management or a group of investors to buy out the stockholders in a company
Micropreneur
Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle TERM 17
HOME-BASED BUSINESS GROWTH
DEFINITION 17 Technology has leveled the playing field Downsizing has led many to venture on their own Social attitudes have changed New tax laws have loosened restrictions on deducting expenses for home offices TERM 18
Cons of Home-Based Business
DEFINITION 18 Getting new customers, managing time, keeping work and family tasks separate, abiding by city ordinances, and managing risk TERM 19
Intrapreneur
DEFINITION 19 A creative person who works as an entrepreneur within a corporation. Intrapreneurs use a companys existing resources to launch new products for the company TERM 20
Enterprise Zones
DEFINITION 20 Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support
Incubators
Offer new businesses low-cost offices with basic services TERM 22
Small Business
DEFINITION 22 Independently owned and operated, not dominant in its field of operation and meets certain standards of size TERM 23
BUSINESS FAILURES are LOWER THAN the
REPORTS BECAUSE
DEFINITION 23 Owner closing a business to start another is reported as a failure Changing forms of ownership is reported as a failure Retirement is reported as a failure TERM 24
MAJOR BUSINESS FUNCTIONS
DEFINITION 24 Planning Financing Knowing customers Managing employees Keeping records TERM 25
Business Plan
DEFINITION 25 A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners qualifications. A business plan forces potential owners to be specific about what they will offer. A business plan is mandatory for talking with bankers or investors
