BGCSE BSSE Entrepreneurship (1441) key terms

A person who starts, owns and runs a business, takes on financial risk and makes the main decisions about how money, people and materials are used to create goods or services.

Working for yourself rather than being paid a wage by an employer, usually by running your own trade, shop, farm or small business and carrying the related costs and risks.

A way of thinking that looks for chances to create value, accepts calculated risk, learns from failure and keeps moving toward a goal when resources are limited or setbacks occur.

The determination to keep working on a business goal after delays, rejections or losses, adjusting plans when needed rather than giving up before results have had time to appear.

A situation in which a real customer need is not being met well, so a person can offer a product or service that buyers will pay for at a profit.

A first thought about a product, service or way of earning income, which may or may not become a genuine opportunity once customer demand and costs are checked.

Introducing a new or improved product, service, process or business method that creates extra value for customers or lowers the costs and effort needed to serve them.

A careful check of whether a proposed business can work in practice, covering likely demand, costs, skills needed, legal rules and possible returns before money is committed.

A short statement explaining what a business offers, which customer group it serves and why buyers should choose it instead of the other alternatives available to them.

The process of gathering and studying information about customers, competitors and market conditions so that business decisions rest on evidence rather than guesswork or assumption.

The specific group of customers a business decides to serve and aims its products, prices, messages and selling effort at, rather than trying to please everyone.

Dividing a broad market into smaller groups of buyers who share similar needs, incomes, locations or habits, so a business can tailor its offer to one or more groups.

The combination of product, price, place and promotion decisions that a business controls in order to attract its chosen customers and meet their needs profitably.

Paid, non-personal communication that promotes a product, service or business through media such as radio, posters, newspapers, social platforms or flyers to reach potential buyers.

A written document setting out what a business intends to do, who will run it, what it will sell, how it will operate, what it will cost and how money will be raised and repaid.

The opening section of a business plan that sums up the idea, the owners, the target market, the money needed and the expected results in a short, persuasive overview.

A brief written declaration of a business's purpose and values, telling employees and customers what it does, whom it serves and how it wants to be known.

Money or assets put into a business by owners, lenders or investors so it can buy equipment, stock, premises and other resources needed to start or expand.

The money needed to cover costs before a new business begins earning enough income, including premises, equipment, licences, initial stock and early running expenses.

The movement of money into and out of a business over a period, showing when receipts arrive and payments fall due and whether enough cash is on hand.

A plan that estimates expected income and planned spending over a set period, used to guide decisions, control costs and compare actual results with intentions.

The regular, organised writing down of business transactions and documents such as receipts, sales, purchases and payments, so the owner can track performance and meet legal duties.

The level of sales at which total revenue equals total costs, so the business makes neither a profit nor a loss and every sale beyond that adds profit.

The process of turning inputs such as raw materials, labour and machinery into goods or services that customers want, using chosen methods and quality standards.

The full sequence of people and activities that provide materials, move stock, make products and deliver them to customers, from original suppliers through to the final buyer.

The stock of raw materials, work in progress and finished goods a business holds, managed so customer orders can be met without tying up too much money.

The checks and procedures a business uses to make sure products or services consistently meet stated standards and customer expectations, reducing waste, complaints and returns.

A person or firm that provides goods or materials to a business, chosen for reliable quality, fair prices, dependable delivery and honest dealing.

The formal process of recording a business with the proper authority and obtaining required licences and tax numbers so that it can trade legally and be recognised.

A business owned and controlled by one person, who keeps the profits but is personally responsible for all debts and obligations of the business.

A business owned by two or more people who share the capital, work, profits and losses according to an agreement, and who may each be liable for business debts.

The principles of honesty, fairness and responsibility that guide how a business treats customers, workers, suppliers, competitors and the community, beyond mere legal requirements.

A legally binding agreement between parties that sets out what each will do, the price or terms, and what happens if someone fails to keep their side.

The chance that something harmful or unexpected will happen and affect a business, such as lost sales, damaged stock, theft, illness or sudden cost increases.

Identifying possible threats to a business, judging how likely and serious each is, and taking steps to avoid, reduce, transfer or accept them.

A prepared backup set of actions to follow if something goes wrong, such as a supplier failing, equipment breaking down or sales falling below target.

The ability of a business and its owner to recover from shocks, adapt to changed conditions and keep operating, learning from setbacks instead of collapsing under them.

An increase in a business's size, sales, customers, staff or profit over time, achieved by methods such as more marketing, new products or opening new outlets.

Adding new products, services or markets that differ from what a business already does, spreading risk and creating fresh income streams while using existing strengths.