BSEH SS Entrepreneurship flashcards
BSEH SS Entrepreneurship · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Entrepreneurial opportunity
- A market gap where a specific customer group has an unmet need, willingness to pay, and accessible channels, making a new venture potentially viable.
- Effectuation
- An entrepreneurial logic in which founders start with available means, set an affordable loss, leverage partnerships, exploit surprises, and co-create the future rather than predict it.
- Need for achievement
- McClelland's motive describing people who seek challenging but achievable goals, want personal responsibility for results, and prefer feedback over routine tasks.
- Lean startup
- A method that builds a minimum viable product, measures real customer behaviour, and learns whether to pivot or persevere, reducing waste from untested assumptions.
- Design thinking
- A user-centred problem-solving cycle with empathize, define, ideate, prototype, and test stages; it reframes problems and iterates based on user feedback.
- Business plan
- A written document covering the venture's market, offer, operations, management, financial projections, and risks; it guides execution and supports financing discussions.
- Feasibility study
- A pre-launch assessment of market demand, technical capability, financial viability, legal compliance, and operational practicality before committing full resources to a venture.
- Lean Canvas
- A one-page business model tool with problem, customer segments, unique value proposition, solution, channels, revenue streams, cost structure, key metrics, and unfair advantage.
- Minimum viable product
- The smallest version of an offering that lets a venture test critical assumptions with real users while spending the least effort and money.
- Value proposition
- A clear statement of the benefit a product gives a defined customer segment, the pain it relieves or gain it creates, and why it beats alternatives.
- SMART goal
- A goal framed as specific, measurable, achievable, relevant, and time-bound, making progress easier to monitor and evaluate.
- Marketing mix
- The controllable set of product, price, place, and promotion decisions a firm combines to serve a target market; services add people, process, and physical evidence.
- Market segmentation
- Dividing a broad market into groups with similar needs, behaviour, or characteristics so that offers and messages can be tailored to chosen segments.
- Product life cycle
- The progression of a product through introduction, growth, maturity, and decline, with sales, profit, competition, and marketing choices changing at each stage.
- Penetration pricing
- A strategy that sets a low initial price to attract buyers quickly, build market share, and deter entrants, often accepting thin early margins.
- Price skimming
- A strategy that sets a high launch price to capture customers with low price sensitivity and recover development costs before competitors enter.
- AIDA model
- A communication sequence that moves buyers through attention, interest, desire, and action; each stage requires different message content and media.
- Ansoff matrix
- A growth framework crossing existing or new products with existing or new markets to give market penetration, product development, market development, and diversification options.
- Vertical integration
- A growth strategy in which a firm expands into a different stage of its industry's value chain, either backward toward suppliers or forward toward customers.
- Franchising
- A contractual arrangement where a franchisor licenses its brand, systems, and support to a franchisee, who pays fees or royalties and operates the outlet.
- Joint venture
- A separate business entity created by two or more firms that share ownership, control, profits, and risks to pursue a specific project or market.
- Economies of scale
- The decline in average cost per unit as output rises, caused by spreading fixed costs, bulk purchasing, specialization, and learning effects.
- Break-even point
- The sales volume or revenue at which total revenue equals total cost and profit is zero; units equal fixed cost divided by contribution per unit.
- Contribution margin
- Sales revenue minus variable costs; per unit, selling price minus variable cost per unit. It covers fixed costs and then contributes to profit.
- Margin of safety
- Actual or expected sales minus break-even sales; it shows how much sales can fall before the business makes a loss.
- Current ratio
- Current assets divided by current liabilities; it indicates short-term liquidity and ability to pay obligations due within one year.
- Debt-equity ratio
- Total debt divided by shareholders' equity; it measures financial leverage and the relative risk borne by lenders versus owners.
- Return on investment
- Net gain from an investment divided by its cost, often expressed as a percentage; it compares profitability with the capital committed.
- Equity financing
- Raising funds by issuing shares or admitting owners; investors gain ownership rights, returns are not fixed, and control may be diluted.
- Trade credit
- A short-term source in which a supplier allows the buyer to pay later, effectively financing inventory; the cost may be a lost cash discount.
- Factoring
- Selling accounts receivable to a financial intermediary at a discount so the firm receives cash sooner, improving liquidity at a financing cost.
- Bootstrapping
- Financing a venture from personal savings, customer prepayments, and operating revenue rather than outside investors, preserving ownership but limiting scale.