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born global
venture seeking to be a global company from its inception
build-measure-learn loop
step-by-step approach on how to maneuver a startup, how to change course if necessary, how to persevere, and how to accelerate the expansion of a business
business failure
ending a business due to the lack of goal attainment, which can include low levels of revenue and profit, or not meeting investors’ expectations
business lifecycle
stages companies go through: birth, growth (or expansion to new markets and products), maturity, decline, death or rebirth
early adopters
people who like to try new things and can be found at the onset of the adoption process for a product
franchising
form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
Global Entrepreneurship Monitor (GEM)
organization that researches entrepreneurship around the world
innovation accounting
assesses whether the changes made to the product are creating the desired results
iterations
small changes to the current version of a product to make it better fit consumer needs
joint venture
temporary partnership in which two different enterprises combine for the purpose of mutual benefits such as sharing of expenses and to work toward shared goals and the associated potential revenue
lean pitch
verbal delivery of an idea or business plan as a request to a group of investors by an entrepreneur
lean plan
brief business plan shown to potential investors and employees that is a fast and effective way to set, manage, and evaluate goals and strategies in a business
lean startup
methodology entrepreneurs use this method to help them innovate by continuously testing their products and getting feedback from customers in real time
licensing
contract in which one enterprise gives permission to another entity to manufacture and sell its products for a royalty
mergers and acquisitions
when two companies combine, or one buys the majority stake of the other
minimum viable product (MVP)
early version or prototype of a product that may not be polished or complete but that functions well enough that you can begin to market it or test it with potential users
pivoting
crucial change done to test a hypothesis regarding the basic product, its growth potential, and business model; if something is not working, then a change or a “pivot” needs to take place
strategic alliance
arrangement created by two entities to work on a project by sharing some of their strengths and resources, but not actually creating a new entity as in the case of a joint venture
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