DZI Entrepreneurship (Bulgaria) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Creative destruction

Schumpeter's term for the process in which new products, methods and firms displace established ones, renewing the economy and rewarding entrepreneurs who innovate.

Kirznerian alertness

The entrepreneur's ability to notice unnoticed price differences and unmet demand, earning profit by correcting market disequilibrium rather than by inventing something new.

Knightian uncertainty

Outcomes whose probabilities cannot be measured or insured. Unlike measurable risk, this uncertainty cannot be hedged, and bearing it is the source of pure entrepreneurial profit.

Business angel

A wealthy individual who invests personal funds in early-stage ventures, usually in exchange for equity, often providing mentoring alongside capital.

SCAMPER technique

A structured creativity checklist using Substitute, Combine, Adapt, Modify, Put to another use, Eliminate and Reverse to generate variations of an existing product or process.

Opportunity versus idea

An idea is any thought about a product; an opportunity is an idea that is attractive, timely, durable and attached to a market able and willing to pay.

Job to be done

The progress a customer tries to make in a specific circumstance. Framing demand this way reveals the real competitor, which is the current workaround.

Lead user analysis

A creativity method that studies users at the leading edge of a market, whose unmet needs foreshadow mainstream demand and often generate the most valuable innovations.

Business Model Canvas

A one-page framework with nine blocks covering customer segments, value proposition, channels, relationships, revenue, resources, activities, partners and costs.

Minimum viable product

The cheapest version of a product that lets a team test its riskiest assumption with real users, gathering learning before committing further capital.

Break-even quantity

The sales volume at which total revenue equals total cost, calculated as fixed costs divided by the difference between unit price and unit variable cost.

Contribution margin

Unit price minus unit variable cost. It shows how much each sale contributes to covering fixed costs and then to operating profit.

Pivot

A structured change in one element of a business model - segment, need, channel, revenue or technology - while keeping what the team has already learned.

TAM, SAM, SOM

Three nested market measures: total addressable market, the serviceable portion reachable with the model, and the share realistically obtainable in the planning period.

Price elasticity of demand

The percentage change in quantity demanded divided by the percentage change in price. Absolute values above one indicate elastic, price-sensitive demand.

MASDA segmentation test

A check that each customer segment is measurable, accessible, substantial, differentiable and actionable, so that marketing resources can be allocated effectively.

Customer lifetime value

The gross profit expected from a customer over the whole relationship, computed as average purchase value times frequency times retention period times margin.

A/B test

An experiment that changes one variable between two groups while holding everything else constant, using a pre-set sample size to judge the difference.

Net present value

The sum of future cash flows discounted at the required rate, minus the initial investment. A positive result means the project adds value.

Internal rate of return

The discount rate at which a project's net present value equals zero. It is compared with the cost of capital or a hurdle rate.

Payback period

The time required for cumulative cash inflows to recover the initial outlay. It is simple but ignores the time value of money and later cash flows.

Working capital

Current assets minus current liabilities. A positive figure represents funds tied up in operations that must be financed from cash or credit lines.

Equity dilution

The reduction in existing owners' percentage stakes caused by issuing new shares. A founder's post-money share equals pre-money founder value divided by post-money valuation.

OOD (limited liability company)

The standard Bulgarian company form: one or more partners, minimum capital of 2 BGN, and liability limited to each partner's contributed share.

EOOD (single-member LLC)

A Bulgarian limited liability company with a single owner, either a person or a company, requiring the same 2 BGN minimum capital as a multi-partner OOD.

AD (joint-stock company)

A Bulgarian company with shares and a minimum capital of 50,000 BGN, governed by a general meeting and a board. Mandatory for banks and insurers.

Commercial Register

Bulgaria's official public register at the Registry Agency. Company formation takes legal effect on entry, and filings are publicly searchable.

Tuckman team stages

The five phases of team development: forming, storming, norming, performing and adjourning. Conflict during storming is a normal, expected step.

Belbin team roles

Nine behavioural roles describing how people contribute to a team, including plant, shaper, coordinator, implementer, monitor-evaluator and completer-finisher.

Span of control

The number of subordinates reporting directly to one manager. A wider span flattens hierarchy but increases the supervisory and coordination load.

Risk register

A living document listing each risk with its probability, impact, score, owner, mitigation action and residual level after treatment.

Triple bottom line

A social-responsibility accounting frame that evaluates a firm on three dimensions - social (people), environmental (planet) and financial (profit) performance.