CHSE Odisha Fundamentals of Entrepreneurship flashcards

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

Entrepreneurship

The process of identifying an opportunity, assembling resources, and creating a venture that bears risk in expectation of profit; it includes innovation and coordination of land, labour, and capital.

Schumpeter's creative destruction

Entrepreneurs introduce new combinations (product, method, market, supply source, organisation) that make existing firms obsolete, driving structural change and growth in a capitalist economy.

Kirznerian alertness

The entrepreneur's ability to notice profit opportunities that others have overlooked; this arbitrage restores market equilibrium rather than disrupting it as Schumpeter's innovator does.

Intrapreneur

An employee who develops and implements innovations within an existing organisation, using the firm's resources and bearing little personal financial risk, unlike an independent entrepreneur.

Need for achievement

McClelland's motive describing a drive to meet high self-set standards; high n-Ach is associated with moderate-risk choices and with entrepreneurial entry, and can be developed through training.

Kakinada experiment

McClelland and Winter's 1960s achievement-motivation training in Kakinada, Andhra Pradesh, which reported higher rates of new business activity among trained participants than among controls.

Internal locus of control

Rotter's construct describing the belief that outcomes result from one's own actions; an internal locus supports initiative and persistence, while an external locus attributes outcomes to luck or others.

Timmons model

A framework holding that venture success depends on the fit and balance among three elements - the opportunity, the resources, and the entrepreneurial team - led by the founder's leadership.

Pull versus push motivation

Pull factors attract a person to entrepreneurship (independence, achievement, profit); push factors drive them out of alternatives (job loss, dissatisfaction). Push-led ventures often survive less well.

PESTEL analysis

A scan of Political, Economic, Social, Technological, Environmental, and Legal forces that shape opportunities and threats; it is performed before committing resources to a venture.

Udyam Registration

India's online registration giving an enterprise MSME status; it replaced Udyog Aadhaar and is the basis for availing MSME schemes, subsidies, and priority-sector credit.

MSME classification limits

Composite investment-and-turnover criteria: micro up to ₹1 crore and ₹5 crore; small up to ₹10 crore and ₹50 crore; medium up to ₹50 crore and ₹250 crore.

Limited Liability Partnership

A business form under the LLP Act 2008 giving partners limited liability and a separate legal entity, with lighter compliance than a company and no minimum capital requirement.

Business ecosystem

The interconnected set of actors - financiers, suppliers, customers, regulators, incubators, universities, and culture - whose support determines whether a new venture can start and scale.

Idea versus opportunity

An idea is any thought about a product or service; an opportunity is an idea that is attractive, durable, timely, and anchored in an offering that delivers value to paying customers.

SCAMPER technique

An idea-generation checklist: Substitute, Combine, Adapt, Modify, Put to other use, Eliminate, Reverse - each prompt applied to an existing product to generate new variants.

Brainstorming rule

During idea generation, defer judgement and aim for quantity; criticism is withheld until a later screening stage so that unusual ideas are not suppressed early.

Feasibility sequence

The order of project checks: market feasibility (demand and price), technical feasibility (production capability), financial feasibility (returns), and managerial feasibility (capacity to execute).

Value proposition

A concise statement of the specific benefit a product delivers to a defined customer segment, and why it is preferable to the alternatives those customers currently use.

Break-even quantity

The output at which total revenue equals total cost: Fixed Cost divided by (Selling Price per unit minus Variable Cost per unit). Beyond it, each unit adds to profit.

P/V ratio

The profit-volume ratio equals Contribution divided by Sales, or (Sales minus Variable Cost) divided by Sales; break-even sales value equals Fixed Cost divided by the P/V ratio.

Payback period

The time required for cumulative cash inflows to recover the initial investment. It is simple and liquidity-focused but ignores cash flows after payback and the time value of money.

Net present value

The sum of expected cash flows discounted at the cost of capital, minus the initial outlay. A positive NPV means the project adds value; accept when NPV exceeds zero.

Debt-equity ratio

Total borrowings divided by owners' funds; appraisers use it to judge financial risk and to check whether the promoter's contribution meets the minimum margin required by lenders.

Economic order quantity

The order size minimising total inventory cost: square root of (2 × annual demand × order cost ÷ holding cost per unit per year). It balances ordering cost against carrying cost.

Current ratio

Current assets divided by current liabilities; it measures short-term liquidity and the ability of a small firm to meet obligations falling due within a year.

Marketing mix 4Ps

Product, Price, Place, and Promotion - the controllable variables a small firm adjusts to serve a chosen target segment; services add People, Process, and Physical evidence.

STP framework

Segmentation of the market into distinct groups, Targeting of the most attractive group, and Positioning of the offer in the customer's mind relative to competitors.

Entrepreneurship Development Programme

A structured training programme combining achievement motivation, business and technical knowledge, and project report preparation, with post-training follow-up to help trainees start ventures.

NIESBUD

The National Institute for Entrepreneurship and Small Business Development, based in Noida, which trains trainers and develops curricula and materials for entrepreneurship development programmes.

CGTMSE

The Credit Guarantee Fund Trust for Micro and Small Enterprises, which guarantees collateral-free loans to micro and small units, sharing the lender's default risk under specified limits.

Triple bottom line

Elkington's framework judging enterprise performance on three dimensions together - social (people), environmental (planet), and financial (profit) - rather than on profit alone.