Entrepreneurship Terms

 

Look through our growing list of entrepreneurship terms to get the definition you need. 

A 

Accelerator: A program that offers intense, short-term support and mentorship to startups, typically culminating in a demo day where entrepreneurs pitch their businesses to investors.

Angel Investor: An individual who provides financial backing to startups and early-stage businesses, often in exchange for ownership equity or convertible debt.

B 

Bootstrapping: Building and growing a business without external funding, relying on personal savings, revenue generated by the business, and low-cost resources.

Business Plan: A written document outlining the goals, objectives, strategies, and financial projections of a business.

C 

Customer Acquisition Cost (CAC): The average cost a business incurs to acquire a new customer, including marketing and sales expenses.

Customer Lifetime Value (CLV): The predicted net profit generated by a customer over the entire duration of their relationship with a business.

D 

Disruptive Innovation: An innovation that creates a new market or disrupts an existing market by offering a simpler, more convenient, or more affordable solution to customers' needs.

E 

Elevator Pitch: A brief, persuasive speech that summarizes the key elements of a business idea or startup in the time it takes to ride an elevator, usually around 30 seconds to 2 minutes.

Entrepreneurship: The process of starting and operating a new business venture, typically involving innovation, risk-taking, and resource management.

Exit Strategy: A plan outlining how an entrepreneur intends to sell or otherwise exit their business, often through a merger, acquisition, or initial public offering (IPO).

F 

Franchise: A business arrangement in which one party (the franchisor) grants another party (the franchisee) the right to use its trademark, brand, and business model in exchange for a fee or royalty.

G 

Growth Hacking: Innovative and often unconventional strategies used by startups to rapidly grow their user base or customer acquisition at minimal cost.

H 

Human Capital: The knowledge, skills, experience, and abilities possessed by individuals within an organization, which contribute to its overall productivity and competitiveness.

I 

Incubator: A program or organization that provides support, resources, and mentorship to early-stage startups to help them grow and succeed.

Intellectual Property (IP): Legal rights that protect intangible assets such as inventions, designs, trademarks, and creative works from unauthorized use or reproduction.

J 

Job Satisfaction: The level of contentment or fulfilment an individual experiences in their work role, influenced by factors, such as job autonomy, recognition, and growth opportunities.

Joint Venture: A business arrangement where two or more parties collaborate to undertake a specific project or venture, sharing risks, resources, and profits.

K 

Key Performance Indicators (KPIs): Quantifiable metrics used to evaluate the performance and success of a business, often aligned with strategic objectives and critical areas of focus.

L 

Lead Generation: The process of attracting and capturing potential customers' interest in a product or service, often through marketing and sales activities such as advertising, content marketing, and networking.

Lean Startup: An approach to entrepreneurship that emphasizes rapid experimentation, validated learning, and iterative product development to reduce wasted resources and increase the likelihood of success.

Licensing: The process of granting permission to another party to use intellectual property, such as trademarks, patents, or copyrights, in exchange for royalty payments or other forms of compensation.

Limited Liability Company (LLC): A business structure that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership or sole proprietorship, popular among small businesses and startups.

Liquidation: The process of winding down and selling off the assets of a business, typically done when a company is insolvent or decides to cease operations.

M 

Market Leader: A company which holds the largest market share and exerts significant influence over industry trends, pricing, and competition within a particular market or sector.

Market Research: The process of gathering, analyzing, and interpreting information about a market, including its size, trends, competitors, and customer preferences, to inform business decisions.

Mentorship: A relationship in which an experienced individual (the mentor) provides guidance, support, and advice to a less experienced individual (the mentee) to help them develop their skills, knowledge, and career.

Minimum Viable Product (MVP): The simplest version of a product or service that allows a startup to test its concept and gather feedback from early adopters.

N 

Networking - The process of building and maintaining professional relationships and connections with other individuals and organizations, often used by entrepreneurs to exchange ideas, resources, and opportunities.

Niche Market: A specialized segment of a market targeting a specific group of customers with unique needs or preferences, often characterized by less competition and higher profit margins.

O 

Outsourcing: The practice of contracting out certain business functions or processes to third-party vendors or service providers, often to reduce costs, access specialized expertise, or focus on core activities.

P 

Pitch Deck: A presentation, typically in slide format, used by entrepreneurs to pitch their business ideas to potential investors or partners.

Pivot: The strategic decision to change a fundamental aspect of a business, such as its target market, product offering, or revenue model, in response to market feedback or changing circumstances.

Q 

Qualitative Research: Research methods used in entrepreneurship to gather non-numerical data, such as interviews, focus groups, and observations, to gain insights into customer preferences, market trends, and business opportunities.

R 

Return on Investment (ROI): A financial metric used to evaluate the profitability of an investment by comparing the net profit generated to the cost of the investment, typically expressed as a percentage.

S 

Scaling: The process of growing a business by increasing its revenues, customer base, and market presence while maintaining or improving efficiency and profitability.

Startup: A newly established business venture, often characterized by innovation, high growth potential, and a degree of uncertainty.

T 

Target Market: A specific group of consumers or businesses that a company aims to reach with its products or services, based on demographic, geographic, psychographic, or behavioral characteristics.

U 

Unique Selling Proposition (USP): A distinctive feature or benefit of a product or service that sets it apart from competitors and appeals to customers, often used as a key element of marketing and branding strategies.

V 

Venture Capital: Funding provided by investors to startups and small businesses with high growth potential, typically in exchange for equity ownership.

W 

Work-Life Balance: The equilibrium between work-related activities and personal or leisure pursuits, essential for maintaining overall well-being and productivity as an entrepreneur.

X 

No Data

Y 

Yield Management: A pricing strategy used by businesses to maximize revenue by dynamically adjusting prices based on fluctuations in demand, capacity, and other market factors.

Z

Zero-Based Budgeting: A budgeting approach where expenses must be justified for each new budget period, starting from a baseline of zero, rather than simply adjusting from the previous period's budget.