BSEB Inter Entrepreneurship key terms

The process of spotting a need, assembling resources, and creating a new venture that delivers value and bears the risk of failure.

A person who organises land, labour, capital and information to start and run an enterprise, accepting uncertainty in return for expected profit.

Accepting the possibility of financial loss or failure when committing resources to a venture whose outcome cannot be guaranteed in advance.

Introducing a new product, process, market, source of supply or way of organising work that creates additional value for customers.

A newly established business, usually small and searching for a repeatable, scalable model of earning revenue before it settles into routine operations.

Practising entrepreneurial behaviour inside an existing organisation, where an employee develops a new product or process using the employer's resources.

An unmet or poorly met customer need that a venture can serve profitably with available resources and acceptable risk.

Systematically scanning customers, markets and problems to recognise situations that could be turned into a viable business.

A segment of demand that existing suppliers do not satisfy in terms of price, quality, location, availability or service.

Producing a pool of possible business ideas through observation, brainstorming, surveys, hobbies, prior experience and study of local problems.

A group technique in which participants freely suggest many ideas without criticism, and evaluation is postponed until after the session.

The external economic, social, legal, technological and competitive conditions that influence how a venture can operate and grow.

A structured review of a venture's internal strengths and weaknesses together with external opportunities and threats, used to guide strategy.

A written document describing a venture's idea, market, operations, organisation, costs and expected returns, used to guide action and attract support.

An investigation into whether a proposed project is technically possible, commercially viable, financially sound and acceptable in its setting.

A written account of a proposed enterprise covering its background, product, market, process, investment, costs and expected profitability.

Estimating who will buy, how much they will buy, at what price, and how competitors currently serve that demand.

Collecting information directly from potential customers, retailers or competitors to test demand and preferences before launching.

The sales level at which total revenue equals total cost, so the venture neither earns profit nor suffers loss.

An expense that stays broadly the same regardless of how much is produced or sold, such as rent or insurance.

An expense that changes in direct proportion to output or sales, such as raw material or packaging cost.

The funds tied up in day-to-day operations, calculated as current assets minus current liabilities, needed to keep the business running.

The actual movement of money into and out of a business over a period, which may differ from recorded profit.

A statement listing a business's assets, liabilities and owner's capital at a particular date to show its financial position.

A statement summarising revenue, expenses and the resulting profit or loss of a business over a stated period.

The deliberately designed structure of roles, authority and reporting relationships that defines how work is divided and coordinated.

Assigning a task together with the necessary authority to a subordinate while remaining accountable for the result.

The number of subordinates who report directly to one manager, which shapes how flat or tall the organisation is.

The combination of product, price, place and promotion decisions a small firm uses to reach its chosen customers.

Dividing a broad market into smaller groups of buyers with similar needs so that offers and messages can be tailored.

The specific group of customers a venture chooses to serve with its product, price and promotional effort.

The route a product follows from producer to final consumer, including wholesalers, retailers or direct selling.

Attracting and shortlisting suitable applicants for a vacancy through internal or external sources before selection takes place.

A written statement of the duties, responsibilities and reporting relationships of a particular post in the enterprise.

Planned instruction that develops the skills and knowledge employees need to perform their present or future jobs effectively.

Credit or equity provided by banks, cooperative societies, development finance bodies or government-backed schemes rather than private lenders.

A grant or cost concession given by government to reduce the burden of setting up or running a venture in a priority area.

A support organisation offering new ventures shared space, mentoring, technical help and networking during their early, fragile stage.

Creating and running a venture whose primary purpose is to solve a social or environmental problem while sustaining itself financially.

Judging a business by three results together: profit, social benefit and environmental impact, rather than by financial return alone.

Running a business so that it meets present needs without exhausting resources or harming the prospects of future generations.

The standards of honesty, fairness and responsibility a venture applies in dealing with customers, employees, suppliers and the public.