Entrepreneurship Concepts and Theories

A person who takes risks to start and run a new business, bringing together resources like land, labor, and capital to create something new and innovative.

The process of creating and running a new business, especially one with a focus on innovation and growth.

A person who buys factors of production at known costs but sells the finished product at uncertain prices, assuming the risk of profit or loss.

The force that initiates and motivates action toward a desired result. It can be internal, like personal goals, or external, like rewards.

The process of influencing and inspiring others to work together towards a common goal.

The ability to communicate effectively, both verbally and nonverbally, with others.

A person who combines resources to innovate and create new products or services, driving economic growth and change.

A person who organizes resources and people to create and manage a business, taking on the responsibility of decision-making.

A risk that cannot be calculated or insured against, leading to uncertainties in outcomes.

A risk that can be mitigated through insurance, where the distribution of outcomes across a group is known.

The process of combining factors of production (land, labor, capital) to create a product, with entrepreneurs taking the lead in organizing and managing.

An entrepreneur's role in introducing new products, methods, markets, raw materials, or organizational structures to drive economic progress.

A person who discovers new methods or materials, but may not necessarily implement them into actual products or processes.

A person who takes inventions and discoveries and uses them to create new combinations, products, or processes.

An individual who takes the initiative to create something new, organizes production, manages risks, and handles the uncertainty involved in entrepreneurial ventures.

The ability to take action and make decisions without being prompted, extending business to new areas, products, or services.

A systematic approach to making effective decisions, involving problem definition, data gathering, brainstorming, evaluation, and implementation.

A process of generating ideas with no judgment or criticism, allowing for free flow of thought and creativity.

The ability to remain resilient in the face of challenges, viewing obstacles as opportunities for growth.

The process of identifying, examining, and choosing the best solution from a list of possible options.

Putting a chosen solution into action, taking steps to make the decision a reality.

The ability to influence others to work enthusiastically towards shared objectives.

The ability to collaborate with team members, fostering open communication and encouraging participation.

The ability to use knowledge, methods, techniques, and equipment to perform tasks successfully. Often developed through experience, education, and training.

The capacity to work effectively with people, building strong teams and understanding motivations. Essential for middle-level managers who need to lead others.

The ability to grasp the complexities of an organization, encompassing things like formulating objectives, policies, and handling workflow. Crucial for higher-level managers who need to see the big picture.

The ability to solve problems creatively and come up with innovative solutions. This aspect of leadership is essential for staying ahead in a dynamic environment.

The ability to be assertive, gain influence and control. Essential for navigating power dynamics effectively.

The ability to have supportive interpersonal communication and build strong teams.

The ability to manage personal time, stress, and conflicts effectively. Also involves making rational decisions.

The ability to be aware of one's strengths, weaknesses, values, and motivations. Essential for effectively leading others.

The ability to adjust demands and find creative solutions that benefit both parties in a negotiation.

The process of thoroughly researching and planning before a negotiation, including understanding goals, the other party's needs, and market conditions.

Using clear and effective communication to explain needs, actively listen to the other party, and address concerns constructively during negotiations.

The act of reaching agreements, resolving conflicts, and making decisions that significantly impact the success of a business.

Performing routine tasks, like processing mail, reading reports, writing documents, and attending informational meetings.

Supervising and monitoring performance, including inspecting work, touring facilities, reviewing data, and implementing preventative maintenance.

Inspiring and motivating others, such as by inspecting work, providing feedback, and recognizing achievements.

As individuals advance in organizations, they often require less technical and more human and conceptual skills for success.

This mindset focuses on finding solutions that benefit all parties involved, rather than focusing on winning a debate.

Strategically aligning negotiation outcomes with long-term business goals. This involves considering each negotiation's place in the broader business strategy and its impact on future opportunities.

Confidently asserting needs while negotiating effectively. This involves being self-assured without being overbearing.

Evaluating offers, considering trade-offs, and making informed decisions based on available information.

Acting with honesty and consistency between words and actions. It means being truthful in communication, commitments, and business dealings.

Being open and clear about business practices, decisions, and processes. It helps build trust and avoids misleading practices.

Taking responsibility for actions and decisions, owning up to mistakes, addressing issues promptly, and ensuring actions align with ethical standards.

Protecting sensitive information, respecting privacy, and handling confidential data responsibly.