Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo

action plan
organized, step-by-step outline or guide that pulls together the ideas, thoughts, and key steps necessary to help set the stage for entrepreneurial success
benchmarking
comparing one’s own company’s performance with an industry average, a leader within the industry, or a market segment
bootstrapping
funding strategy that seeks to optimize use of personal funds and other creative strategies (such as bartering) to minimize cash outflows
breakeven point
level of operations that results in exactly enough revenue to cover costs
business model
plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process
capitalism
system in which individuals, people, and companies have the freedom to make decisions and own property as well as benefit from their own efforts, with government playing a secondary role in oversight
cash flow
money collected by the business through revenue and funding versus money disbursed by the business through expenses
cash management
management of cash inflows and outflows to support cash needs of the venture
corporate entrepreneurship
development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporation’s strategy and goals
creative destruction
theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment
due diligence
conducting the necessary research and investigation to make informed decisions that minimize risk
e-commerce
electronic transactions, particularly over the Internet, for the exchange of goods and services
entrepreneurial journey
your exploration to discover if entrepreneurship is right for you
entrepreneurial process
set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture
entrepreneurial spirit
describes a quality of those individuals who are productive self-starters focused on making changes happen
entrepreneurial venture
any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not previously been established
framework
structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation and validation, and brainstorming
franchising
form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
independent contractor
(also, freelancer) people or businesses that provide work similar to an employee without being part of the payroll for the contracting business, and who pay their own taxes and pay for their own benefits
innovation
new idea, process, or product, or a change to an existing product or process
intrapreneur
employee who acts as an entrepreneur within an organization, rather than going solo
milestone
significant decision point or significant accomplishment
patent
legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period
serial entrepreneur
entrepreneur who becomes involved in starting multiple entrepreneurial ventures
situational opportunity
one that becomes available, depending on factors such as where you work, your family obligations, your idea or invention, your unique creative expression, or a recent career search or job change
soft launch
(also, soft open) launching a venture for a limited time frame or audience to gain experience, insights, and feedback about the target market or consumer
target market
specific group of consumers for which a company seeks to provide a good or service
venture
startup company or organization that conducts business or is created to satisfy a need
vertical integration
strategy of gaining control over suppliers of raw materials and distributors of finished products to expand or control the relevant supply chain
Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/entrepreneurship/pages/1-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/entrepreneurship/pages/1-introduction
Citation information

© Sep 19, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.