BSEH SS Entrepreneurship key terms

A person who identifies a business opportunity, gathers the resources needed, bears the risk of the venture, and manages it with the aim of earning profit and creating value.

The process of setting up and running a new business while bearing risk and uncertainty, so that an idea or opportunity is turned into a working, value-creating enterprise.

A way of thinking that spots opportunities in problems, accepts calculated risk and occasional failure, and stays persistent, adaptable, and ready to act while building a venture.

A favourable set of market conditions in which a customer need is unmet or poorly met, and a venture can offer a solution that customers will pay for profitably.

A newly established business, usually small and still testing its product, market, and ways of earning revenue, often with the aim of growing quickly if the model works.

An employee within an existing organisation who spots opportunities, innovates, and takes initiative to create new products, processes, or units, without personally owning the business or bearing full financial risk.

A thought or concept for a product or service that could meet a customer need; before it becomes a venture it must be tested for demand, feasibility, and profitability.

A written document describing the business, its goals, target market, products, marketing, operations, finances, and risks, used to guide the venture and to persuade lenders or investors.

An assessment of whether a proposed business idea can work in practice, covering market demand, technical requirements, financial viability, and legal or environmental constraints, before significant money is committed.

A clear statement of the specific benefit a product or service gives to customers, and why it is better than the alternatives available to them.

The systematic collection and analysis of information about customers, competitors, and market conditions, used to judge demand and reduce uncertainty before and during a business decision.

The opening section of a business plan that briefly presents the idea, opportunity, target market, financial highlights, and funding required, so a reader can understand the whole plan quickly.

The logic of how a venture creates, delivers, and captures value, describing whom it serves, what it offers, how it earns revenue, and what costs it bears.

The set of controllable elements, commonly product, price, place, and promotion, that a firm combines and adjusts to meet the needs of its target market and achieve marketing goals.

Dividing a broad market into smaller groups of buyers who have similar needs, characteristics, or behaviour, so that offers and messages can be designed for each group.

The specific group of customers, selected from the identified segments, on whom a firm focuses its marketing efforts, products, and resources.

Creating a distinct place for a product or brand in the minds of target customers relative to competing offerings, usually by emphasising selected benefits or attributes.

The stages a product passes through over time - introduction, growth, maturity, and decline - each needing different decisions on marketing, pricing, and investment.

Giving a product a name, sign, symbol, design, or combination of these that identifies it, distinguishes it from competitor offerings, and builds recognition and trust with buyers.

The combination of communication tools - such as advertising, sales promotion, personal selling, public relations, and digital marketing - used to inform, persuade, and remind target customers.

A planned approach to increasing a venture's sales, market reach, or capabilities, chosen deliberately from options such as market penetration, product development, market development, and diversification.

A business arrangement in which the owner of a brand and proven system (the franchisor) allows another party (the franchisee) to use them, usually for an initial fee and ongoing payments.

The combining of two or more companies into a single entity, usually to gain scale, market share, or capabilities that the firms could not achieve on their own.

The purchase of one company by another, giving the buyer control of the target company's assets, operations, customers, and market position.

A business formed and owned jointly by two or more parties who share the investment, control, profits, and risks for a specific project or market.

A growth strategy in which a firm enters new products and new markets, related or unrelated to its current business, to spread risk and find fresh revenue.

Expenses that do not change with the level of output or sales in the short run, such as rent, insurance, and salaries of permanent staff.

Costs that change in direct proportion to the quantity produced or sold, such as raw materials, packaging, piece-rate wages, and sales commission.

The level of output or sales at which total revenue equals total cost, so the business makes neither profit nor loss; it shows the minimum volume needed to avoid a loss.

The difference between sales revenue and variable costs; it shows how much each sale contributes towards covering fixed costs and then towards profit.

The funds needed for day-to-day operations, calculated as current assets minus current liabilities, covering items such as stock, receivables, and short-term expenses.

A measure of profitability that compares the gain from an investment with its cost, usually expressed as a percentage, to judge whether the money was used well.

Financing a venture mainly from the founder's own savings and early revenue, keeping outside borrowing to a minimum, so control is retained but growth may be slower.

Money raised by selling a share of ownership in the business; investors provide funds and in return receive a stake in future profits, growth, and decisions.

Money borrowed that must be repaid, usually with interest, on agreed terms; lenders do not receive ownership, but repayment is a fixed obligation on the business.

Funds provided by professional investors to young businesses with high growth potential, in exchange for equity, often along with advice and support, with an eventual exit in view.

A wealthy individual who invests personal money, and often mentoring, in early-stage ventures, usually in return for equity, at a stage when banks see too much risk.

Raising small amounts of money from a large number of people, typically through an online platform, in return for rewards, equity, or sometimes as donations.