Chapter 6 Flashcards
What is entrepreneurship?
Initiating business venture, resource management.
Entrepreneurial companies are engines for job _______ and ___________.
Creation, innovation.
What groups of people are entrepreneurs?
Immigrants, women are embracing entrepreneurship, minorities have high entrepreneurship rates.
What is social entrepreneurship?
Combines creativity, smarts, passion, and hard work with traditional entrepreneurship with mission to make the world a better place.
What are the steps to launching an entrepreneurial start up?
Idea, business plan, legal structure, arrange financing.
What is a sole proprietorship?
Owned by individual for profit, unlimited liability.
What is a partnership?
Unincorporated business owned by two or more people, unlimited liability.
What is a corporation?
Artificial entity created by state existing apart from its owners. Expensive and complex paperwork.
What is debt financing?
Money that must be paid back to banks or individuals.
What is equity financing?
Money invested by owners or those purchasing stock.
What are business incubators?
Provides resources to entrepreneurs such as office space, support services, and management legal advice, mentors.
What are the traits of entrepreneurs?
Autonomy, entrepreneurial sacrifice, high energy, need to achieve, confidence, control.
What is a market niche?
An important aspect of starting a business, as it gives individuals an upper-hand.
