Essential Business and Entrepreneurship Terminology

Key Business and Economic Terminology

Core Business Definitions

Services

Intangible things that businesses do for consumers that enhance their lives.

Innovation

A new way of doing things.

Online Business

A business that conducts operations by means of the internet.

Outsourcing

Contracting with other companies for services.

Niche

A small, specialized segment of the market based on customer needs discovered through market research.

Corporate Strategy and Structure

Strategic Alliance

Forming a partnership with another company.

Corporate Venture

A new venture started inside a large corporation.

Economic Factors and Resources

Fundamental concepts related to wealth creation and market dynamics:

• For creating wealth.
• Technology has shortened [business cycles].
• Competition forces companies [to improve quality and efficiency].
• On the basis of price.
• Goods and services.
• Are part of the environment.
• Land represents the natural resources.
• Capital consists of the equipment used in production.
• Entrepreneurs are the mechanism [for economic growth and change].

Market Research and Publications

Demographics

Characteristics that describe a population.

Trade Show

A gathering or exhibition where vendors and manufacturers introduce new items.

Specialty Magazine

A periodical published for people with special interests (e.g., sports, camping).

Trade Magazine

A periodical published for a specific type of business or industry.

Franchising and Business Acquisition Terms

Franchise

A legal agreement to begin a new business under the name of a recognized company.

Franchisor

The seller of a franchise.

Franchisee

The buyer of a franchise who is given the right to the franchisor's product, process, or service.

Business Broker

Someone whose job is to bring buyers and sellers of businesses together for a fee.

Goodwill

The favor and loyalty a business acquires due to its good reputation.

Essential Entrepreneurial Characteristics

Traits defining successful entrepreneurs:

• Self-Demanding: Having high expectations of oneself.
• Action-Oriented: Being a doer as opposed to a spectator.
• Persistent: Willing to work until a job is done, no matter how long it takes.
• Creative: Looking for new ways to solve old problems.
• Enthusiastic: Having lots of energy and passion about pursuits.
• Goal-Oriented: Deciding where to go and setting out to get there.
• Self-Confident: Believing in oneself and acting accordingly.
• Independent: Setting one's own agendas and schedules and making one's own decisions.

Personal Foundation Concepts

Values

The beliefs and principles by which you choose to live; they define who you are, shape your attitudes and choices, and help identify your priorities.

Brainstorming

To think freely in order to generate ideas.

Statements Requiring Validation (True/False)

• Becoming a creative: False (F)
• The most common: True (T)
• You must be born [an entrepreneur]: False (F)
• A car [is a service]: False (F)
• It is generally more work [to start a business]: True (T)