NSSCAS Entrepreneurship (8247) flashcards

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

Entrepreneurial mindset

A learned pattern of thinking combining opportunity recognition, calculated risk-taking, tolerance of ambiguity, creativity and an internal locus of control that drives venture creation and persistence.

Effectuation

A decision logic in which entrepreneurs start from available means - who they are, what they know and whom they know - and let goals emerge, rather than starting from a predetermined goal.

Intrapreneur

An employee who develops and drives innovative ventures inside an existing organisation, using its resources and systems while bearing limited personal financial risk compared with an independent founder.

Speculative risk

A risk where either gain or loss is possible, as in a new venture investment; it differs from pure risk, where only loss is possible and which is typically insurable.

Kirznerian alertness

The entrepreneur's ability to notice unexploited profit opportunities that others have overlooked, which moves markets toward equilibrium rather than disrupting them as Schumpeter described.

Business opportunity

An idea that is attractive, durable, timely and anchored in a product or service that creates value for buyers, distinguishing it from a mere idea or wish.

Opportunity window

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

SCAMPER technique

An idea-generation checklist prompting users to Substitute, Combine, Adapt, Modify, Put to another use, Eliminate and Reverse elements of an existing product or process.

Feasibility analysis

Screening of a business idea across market, technical/operational, financial and legal dimensions to decide whether it merits full business planning and investment.

PESTLE analysis

A scan of Political, Economic, Social, Technological, Legal and Environmental forces that create or destroy opportunities for a venture in its external environment.

Primary market research

First-hand data collected for the specific research problem through surveys, interviews, observation or experiments; it is specific and current but slower and costlier than secondary data.

Serviceable obtainable market

The share of the serviceable available market that a venture can realistically capture given its resources, competition and go-to-market capacity in the planning period.

Market segmentation

Dividing a heterogeneous market into groups with similar needs or characteristics using demographic, geographic, psychographic or behavioural bases so that offers can be tailored.

Penetration pricing

Setting a low introductory price to attract customers quickly and build market share, often accepting thin or negative margins until volume reduces unit costs.

Break-even point

The sales volume at which total revenue equals total costs, calculated as fixed costs divided by the contribution margin per unit; profit is zero there.

Marketing mix

The controllable set of Product, Price, Place and Promotion decisions used to position an offer; service businesses extend this with People, Process and Physical evidence.

Executive summary

The opening section of a business plan, written last, summarising the opportunity, business model, team, financial highlights and funding requirement so it can stand alone.

SMART objectives

Goals stated so they are Specific, Measurable, Achievable, Relevant and Time-bound, which makes progress verifiable and allows corrective action during implementation.

Sensitivity analysis

Testing how projected financial outcomes change when key assumptions such as price, volume or cost vary, to reveal which variables most threaten the plan.

Milestone

A dated, verifiable checkpoint in a business plan marking completion of a significant deliverable, used to track progress and justify staged funding.

Accounting equation

Assets equal liabilities plus owner's equity; every transaction keeps this balance, forming the basis of double-entry bookkeeping and the balance sheet.

Working capital

Current assets minus current liabilities; it measures the funds available to finance day-to-day operations from paying suppliers to collecting cash from customers.

Contribution margin ratio

Sales revenue minus variable costs, divided by sales revenue; it shows the proportion of each sales unit available to cover fixed costs and generate profit.

Current ratio

Current assets divided by current liabilities; it indicates short-term liquidity and the ability to meet obligations falling due within one year.

Payback period

The time required to recover an initial investment from cumulative cash inflows; a shorter period is preferred, but the measure ignores cash flows after payback and the time value of money.

Risk treatment options

Four responses to an identified risk: avoid the activity, reduce likelihood or impact, transfer the risk through insurance or contracts, or accept and monitor it.

Economic order quantity

The order size that minimises total inventory cost by balancing ordering costs against holding costs, assuming stable demand and known lead times.

Quality assurance

Building quality into processes through standards, training and design so defects are prevented, in contrast to quality control, which inspects and rejects output afterwards.

Stakeholder theory

An ethical and strategic view that a firm should balance the interests of all affected parties - owners, employees, customers, suppliers, communities - not only shareholders.

Triple bottom line

A reporting framework measuring organisational performance against three dimensions: economic profit, social equity (people) and environmental quality (planet).

Limited liability

A legal feature of incorporated companies whereby owners' losses are capped at their invested capital, because the company has separate legal personality from its shareholders.

Ansoff growth matrix

A growth framework crossing existing and new products with existing and new markets to yield four strategies: market penetration, market development, product development and diversification.

Disruptive innovation

An innovation that initially serves overlooked or low-end customers with simpler, cheaper offers and then improves until it displaces established competitors in the mainstream market.

Overtrading

Rapid sales growth that outpaces working capital, leaving a firm short of cash because it must pay suppliers and fund receivables before collecting from customers.