Assam ASSEB HS Entrepreneurship Development flashcards

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

Entrepreneur

A person who combines land, labour and capital to produce goods or services, makes the key decisions, and bears the uncertainty and financial risk of the outcome.

Intrapreneur

An employee within an existing organisation who develops and implements a new idea using the firm's resources, bearing little personal financial risk compared with an independent entrepreneur.

Schumpeter's innovation view

Schumpeter defined the entrepreneur as an innovator who carries out new combinations: new product, new method, new market, new raw material source, or new industrial organisation.

Achievement motivation (nAch)

McClelland's need to excel against a standard of excellence; high nAch is linked to moderate risk-taking, personal responsibility for results and desire for feedback.

Growth mindset

Dweck's belief that abilities can be developed through effort and learning, which increases persistence after failure compared with a fixed mindset that treats ability as static.

Self-efficacy

Bandura's term for a person's belief in their own capability to organise and execute the actions required to reach a goal; higher self-efficacy predicts greater persistence.

Entrepreneurial competency

An observable combination of knowledge, skill and attitude applied to a task, such as opportunity seeking, systematic planning, persistence or persuasion, which can be trained.

Brainstorming

A group idea-generation technique that separates creation from evaluation: participants defer judgement, welcome wild ideas, build on others and aim for quantity before quality.

SCAMPER

An idea-generation checklist that prompts changes to an existing product by asking users to Substitute, Combine, Adapt, Modify, Put to other use, Eliminate or Reverse elements.

Creativity versus innovation

Creativity is the generation of novel and useful ideas; innovation is the successful implementation of such an idea as a product, process or business model in the market.

Opportunity window

The limited period during which market conditions make a particular venture viable; it closes as competitors enter, technology shifts or customer needs change.

Feasibility study

An assessment of a proposed venture across market, technical, financial and organisational dimensions before launch, to test whether the idea can be executed profitably.

Value proposition

A statement of the specific benefit a venture delivers to a defined customer segment and why it is better than the customer's current alternative.

Executive summary

The opening section of a business plan, written last, that condenses the venture's concept, market, team, financial requirement and expected returns into one or two pages.

SMART objectives

A test for goal statements requiring them to be Specific, Measurable, Achievable, Relevant and Time-bound so that progress can be tracked objectively.

TAM, SAM and SOM

Three nested market estimates: total addressable market, serviceable addressable market within reach of the model, and the serviceable obtainable share realistically winnable.

Market segmentation

Dividing a heterogeneous market into groups of buyers with similar needs or behaviour, based on geographic, demographic, psychographic or behavioural characteristics, to target one or more.

Primary versus secondary data

Primary data are collected fresh for the specific study through surveys, interviews or observation; secondary data already exist in reports, censuses and databases.

Marketing mix (4Ps)

The four controllable elements of a marketing programme: Product, Price, Place and Promotion; service firms extend this to seven Ps with People, Process and Physical evidence.

Break-even point

The sales volume at which total revenue equals total cost and profit is zero, calculated as fixed cost divided by contribution per unit.

Working capital

The funds needed for day-to-day operations, measured as current assets minus current liabilities and driven by the length of the operating cycle.

Capital structure

The mix of owned funds (equity and retained earnings) and borrowed funds (loans and debentures) used to finance a venture; it determines financial risk and cost of capital.

P/V ratio

The profit-volume ratio, equal to contribution divided by sales, showing the proportion of each sales rupee available to cover fixed costs and generate profit.

Margin of safety

The excess of actual or expected sales over break-even sales; it measures how far sales can fall before the business starts making a loss.

Contribution

Sales revenue minus variable costs; it first covers fixed costs and any surplus remaining after that is profit.

Limited Liability Partnership

A business form under the LLP Act, 2008 in which partners' liability is limited to their agreed contribution, with at least two designated partners and one resident in India.

One Person Company

A private company form under the Companies Act, 2013 that allows a single individual to own and run a company with limited liability and perpetual succession.

Udyam Registration

The online Indian government registration for micro, small and medium enterprises, based on Aadhaar and PAN, which establishes eligibility for MSME schemes and benefits.

CGTMSE

The Credit Guarantee Fund Trust for Micro and Small Enterprises, which provides guarantee cover to lenders so eligible micro and small enterprises can obtain collateral-free loans.

MUDRA loans

Loans under the Pradhan Mantri MUDRA Yojana, offered through banks in Shishu, Kishor and Tarun categories according to the stage and size of the enterprise.

Triple bottom line

A reporting framework that evaluates a business on three dimensions together: social (people), environmental (planet) and economic (profit) performance.

Corporate Social Responsibility

A company's contribution to social and environmental causes; under Section 135 of the Companies Act, 2013, qualifying companies must spend a specified share of profits.