NSSCAS Entrepreneurship (8247) key terms

A way of thinking that spots chances to create value, tolerates uncertainty and learns from failure. It combines initiative, resourcefulness and persistence rather than relying only on existing resources.

A decision approach where the entrepreneur starts from available means and lets goals emerge through partnerships and affordable experiments, instead of predicting a future market and planning backwards from a fixed goal.

The capacity to absorb setbacks, recover quickly and keep operating after failure, funding loss or market shocks. It involves emotional control, realistic appraisal and adapting plans rather than abandoning the venture.

Entrepreneurial behaviour practised inside an existing organisation, where employees develop new products, processes or markets using the employer's resources, often with limited autonomy and internal approval hurdles.

A situation where a real customer need, willingness to pay and feasible means of delivery coincide, so value can be created profitably. A mere idea becomes an opportunity only when demand and capability are evidenced.

An unmet or poorly served customer need that existing suppliers overlook, undersupply or price out of reach. Identifying a gap is a common starting point for a new venture or product line.

A structured assessment of whether a proposed venture can work in practice, covering technical capability, market demand, financial viability and legal constraints before major resources are committed.

A clear statement of the benefit a product or service delivers to a specific customer group and why it beats the alternatives. It links customer need to the offer's distinctive features.

Dividing a broad market into smaller groups of buyers with similar needs, behaviour or characteristics, so that offers and messages can be tailored to each group rather than aimed at everyone.

The specific group of customers a venture chooses to serve with a given offer. Choosing it requires judging size, accessibility, purchasing power and fit with the firm's capabilities.

Data collected first-hand for the venture's own question, through surveys, interviews, observation or test sales. It is tailored and current but slower and costlier than using published data.

Using data already gathered by others, such as official statistics, trade reports and competitor publications. It is quick and cheap but may be dated, aggregated or not exactly match the question asked.

The coordinated set of controllable tools used to reach the target market, commonly grouped as product, price, place and promotion, with people, process and physical evidence added for services.

The sales volume or revenue at which total revenue equals total costs, so profit is zero. Above it each additional unit contributes to profit; below it the venture makes a loss.

The amount left from each sale after variable costs, which goes towards covering fixed costs and then generating profit. It is expressed per unit or as a percentage of selling price.

Expenses that do not change with the level of output in the short run, such as rent, insurance and salaried staff. They must be paid even when sales are low, raising operating risk.

Expenses that rise or fall directly with the number of units produced or sold, such as raw materials, packaging and sales commission. They determine the contribution each sale makes.

A projection of money expected to come in and go out over future periods, showing the closing balance each time. It reveals timing gaps that can sink a profitable business.

The money tied up in day-to-day operations, calculated as current assets minus current liabilities. Positive working capital lets a firm pay suppliers and staff before customers pay.

An arrangement where a supplier allows a business customer to pay later, typically within 30 to 90 days. It eases cash flow but creates an account payable and possible early-settlement discounts.

A written document describing the venture's concept, market, operations, management, financial projections and risks, used to guide decisions and to persuade lenders or investors to provide support.

The opening section of a business plan that condenses the opportunity, the offer, the team, the funding needed and the expected returns into a short persuasive overview, written last but read first.

A brief spoken or written presentation of a venture, lasting roughly the time of a short lift ride, that states the problem, the solution, the market and the ask clearly enough to earn a follow-up meeting.

The simplest version of an offer that lets real customers use it and give feedback, so assumptions are tested cheaply before heavy investment. It prioritises learning over completeness.

An approach that builds, measures and learns in short cycles, using validated learning and rapid iteration to avoid spending heavily on products customers may not want.

The sequence of organisations, activities and information flows that move materials and services from suppliers through production to the final customer, including storage and delivery.

A stock system where materials and components arrive shortly before they are needed in production. It reduces holding costs but leaves little buffer against supplier delays or demand spikes.

Contracting an activity to an external provider instead of performing it in-house, often to cut costs or access specialist skills. It reduces direct control and can create dependency on the supplier.

Actions taken to reduce the likelihood or impact of identified threats, such as insurance, diversification, buffer stock, back-up suppliers or staged investment, rather than accepting the exposure unchanged.

Careful investigation of a business before an investment, loan or partnership, checking financial records, legal obligations, contracts and market claims so that decisions rest on verified facts.

Any individual or group affected by or able to affect the venture's decisions, such as owners, employees, customers, suppliers, lenders, regulators and the local community.

A situation where competing moral obligations make any available choice compromise something important, for example cutting costs versus protecting worker safety or honest disclosure versus protecting sales.

A firm's voluntary commitment to act in the interests of society and the environment beyond legal minimums, through fair labour practice, community engagement, ethical sourcing and reduced environmental harm.

Legally protected rights over creations of the mind, including patents, trademarks, copyright and trade secrets, which let owners exclude others from using or copying them for a period.

A registered sign, such as a name, logo or slogan, that identifies a trader's goods or services and distinguishes them from competitors. Registration gives the owner exclusive rights, usually renewable indefinitely.

A time-limited legal right granted for an invention that is new, involves an inventive step and is industrially applicable, allowing the holder to prevent others from making or selling it without permission.

The extra value customers attach to a brand name, reflected in willingness to pay more, repeat purchase and resistance to competitor offers. It is built through consistent quality and communication.

Operating so that economic returns are achieved without depleting the natural and social resources the venture depends on, balancing present needs against the ability of future generations to meet theirs.

A production and consumption model that keeps materials in use through reuse, repair, remanufacture and recycling, reducing waste and virgin resource use compared with a take-make-dispose linear model.

The successful commercial application of a new idea, product, process or business model that creates value. It differs from invention, which is the creation of the idea itself.

Growing a venture's revenue faster than its costs by replicating a proven model, adding capacity or entering new markets, while preserving quality and keeping the unit economics sound.

Falls in average cost per unit as output rises, because fixed costs are spread over more units and bulk purchasing or specialisation lowers variable costs. They give larger firms a cost advantage.

A growth method where the owner of a proven format licenses its brand, systems and support to independent operators in return for fees and ongoing royalties, expanding with less capital but less control.