Entrepreneurship Terms & Quiz

Entrepreneurship & Business Encyclopedia.

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Entrepreneurship is the process of designing a new business, i.e. a startup company offering a product, process or service. The entrepreneur perceives a new business opportunity and often exhibits biases in their perception and subsequent decision to exploit the opportunity.

Predictors of entrepreneurial success

Factors that may predict entrepreneurial success include the following:
Methods

Establishing Strategies
Maintaining the Human Personnel
Ensuring the availability of Required Materials
Utilizing the Unique advantage of the Business
Ensuring Good Organization and co-ordination
Congruency to the culture of the society

Market

Business-to-business (B2B) model, not business-to-consumer (B2C)
High growth market
Target customer's missed by others

Industry

Growing industry
High technology impact on the industry
Low capital intensity
Small average incumbent firm size

Team

Large, diverse venture team, not individual entrepreneurs
Graduate degrees
Management experience
Work experience in the start-up industry
Employed full-time prior to new venture, as opposed to unemployed
Prior successful entrepreneurial experience
Full-time involvement in the new venture
Motivated by high profits, not independence
Number and diversity of individual's social ties

Company

Written business plan
Activity focused on a single product or service
Competition based on a dimension other than price
Early, frequent and intense marketing
Tight financial controls
$100,000+ start-up capital
Corporation, not sole proprietorship

Status

Wealth
Dominant Race, Ethnicity, or Gender in a Socially Stratified Culture