DZI Entrepreneurship (Bulgaria) key terms

The process of spotting an opportunity, gathering resources and taking on risk to create a new venture that delivers value to customers and returns to its founders.

A person who initiates and runs a business venture, commits personal effort and capital, bears the uncertainty of the outcome and organises the other factors of production.

The basic inputs used to create goods and services: land and natural resources, labour, capital and the organising function performed by the entrepreneur.

The difference between the market value of a firm's output and the cost of the inputs it bought from other firms; it measures the new wealth the business creates.

A firm that stays below the European Union staff and turnover thresholds; in Bulgaria SMEs are the majority of employers and receive targeted support measures.

The smallest size class of firm, employing fewer than ten people, typical of family shops, craft workshops and sole-trader service businesses in Bulgaria.

The total market value of final goods and services produced inside a country during a period; it is the standard measure of the size of a national economy.

A first, often rough notion of a product or service that could be offered; it becomes a real opportunity only after demand and feasibility are checked.

A business idea that has been tested and found to match real customer demand, available resources and a way to earn a profit.

The ability to produce original ideas by connecting information in new ways; in business it supplies the raw material from which viable ventures are later selected.

A group technique for generating many ideas quickly in which criticism is suspended during the idea-generation phase and evaluation happens only afterwards.

The successful commercial application of a new idea, product, process or business model; it differs from invention because it must reach the market and create value.

A structured assessment of whether a proposed venture can realistically be built and sustained, covering technical, market, financial and legal aspects before major spending.

The logic of how a venture creates value for customers, delivers that value and captures part of it as revenue and profit.

The clear statement of the benefit a customer receives from a product or service and why it is better than the alternatives available to them.

A written document describing the venture's concept, market, operations, management, financial forecasts and funding needs, used both for internal guidance and for attracting investors.

A distinct way in which a business earns money from its customers, such as direct sales, subscriptions, commissions or licensing fees.

The specific group of customers whose needs a business chooses to serve, defined by characteristics such as age, location, income or buying behaviour.

Dividing a broad market into smaller groups of buyers with similar needs or traits so that offers and marketing messages can be tailored to each group.

The systematic collection and analysis of information about customers, competitors and market conditions to support business decisions and reduce uncertainty.

Data gathered first-hand for the specific question at hand, for example through surveys, interviews, observation or test sales.

Use of information that already exists, such as official statistics, industry reports or published studies, collected for another purpose but relevant to the decision.

The coordinated set of controllable tools a firm uses to reach its target market, commonly grouped as product, price, place and promotion.

The name, design, symbols and associations that distinguish a firm's offer from competitors and shape how customers perceive and trust it.

The money needed to launch a venture and cover costs until it generates enough revenue, including equipment, deposits, permits and initial working capital.

The funds tied up in day-to-day operations, calculated as current assets minus current liabilities; it keeps stock, wages and bills covered during the trading cycle.

A projection of money expected to come in and go out over future periods, used to spot shortfalls before they happen and to plan borrowing.

The sales volume or revenue at which total income exactly covers total costs, so the business makes neither profit nor loss.

Expenses that stay broadly the same regardless of how much the business produces or sells in the short run, such as rent, insurance and salaried staff.

Expenses that change in direct proportion to output or sales volume, such as raw materials, packaging and sales commissions.

The range of options for raising money, split between internal funds such as retained profit and external funds such as bank loans, grants, leasing or equity investment.

Raising money by selling a share of ownership in the business to investors, who then share in profits and losses and often in decision-making.

A private individual who invests their own money and often their experience in early-stage ventures, usually in exchange for a minority ownership stake.

Professionally managed funds that invest larger amounts in high-growth companies, typically taking equity and an active role in governance.

A one-person business registered as a trader in Bulgaria; the owner keeps all profit but is personally liable for the debts of the business.

The most common Bulgarian company form, in which one or more partners hold shares and their liability is limited to the capital they have subscribed.

A legal position in which the owner's personal assets can be used to settle business debts, so business failure can threaten personal property.

The official Bulgarian public register where companies, sole traders and their key changes are recorded; registration there gives the business legal personality.

Passing authority and responsibility for a specific task to a subordinate while the manager keeps overall accountability for the result.

The number of subordinates who report directly to one manager; a wide span produces a flatter structure and a narrow span a taller one.

The formal pattern of roles, reporting lines and groupings that shows how tasks are divided and coordinated within a business.

The possibility that an event or decision will lead to outcomes worse than expected, measured by how likely it is and how damaging it would be.

The systematic process of identifying, assessing, reducing and monitoring risks, including avoiding, transferring, accepting or sharing them.

The principles and standards of conduct that guide how a business treats customers, employees, suppliers and the wider community beyond bare legal requirements.

A firm's voluntary commitment to act in ways that benefit society and the environment alongside its commercial goals, often reported to stakeholders.

Any party with an interest in or affected by a business, such as owners, employees, customers, suppliers, lenders, regulators and the local community.