Entrepreneurship Vocabulary Review

The Small Business Administration (SBA) is a United States federal agency that provides support to entrepreneurs and small businesses.

A business plan is a formal document that outlines the goals of a business and the strategy for achieving them. It serves as a roadmap for the entrepreneur.

A competitive grid is a matrix used to compare a business against its competitors based on specific criteria. It helps identify strengths and weaknesses in the market.

A feasibility analysis is conducted early on to test a business concept, examine market viability, and decide whether a proposed business has real potential before investing heavily. A business plan is a more comprehensive formal document created later.

A business concept is a concise summary of a business opportunity that typically includes the product/service, the target customer, the benefit, and the revenue model.

A freight forwarder is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer to a final point of distribution.

A trade barrier is a government-imposed restriction on the flow of international goods or services. Examples include tariffs, quotas, and embargoes.

The global economy refers to the interconnected economic systems of all the world's nations. It encompasses trade, investment, and financial flows across borders.

A business broker is a professional who helps facilitate the sale of businesses by connecting buyers and sellers. They act as intermediaries in the transaction process.

Demographics are statistical data relating to the population and particular groups within it, such as age, gender, income, and education level.

Innovation is the process of translating an idea or invention into a good or service that creates value, often by finding new and creative ways to perform tasks.

Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house.

Competition is the struggle among producers for the dollars of consumers. It drives businesses to improve quality and lower prices.

A profile is a set of characteristics or qualities that identifies a type of person, often used in marketing to define a target customer.

Foundation skills are the basic skills, such as communication, math, and problem-solving, that are necessary to set up and run a business.

An investment is the act of allocating money into a business with the expectation of a future benefit or profit. It is the capital provided to start or grow the venture.

Discontinuance refers to the process of a business closing or changing its nature, such as operating under a new name or ownership structure.

Start-up resources are the essential assets, including capital, labor, and expertise, required to launch a new business.

The business cycle is the natural rise and fall of economic growth that occurs over time, consisting of expansion, peak, contraction, and trough.

Equilibrium is the point where the quantity demanded by consumers equals the quantity supplied by producers, resulting in a stable market price.

A shortage occurs in economics when the quantity demanded for a good or service exceeds the quantity supplied at the current price. Scarcity is a permanent condition where resources are limited, whereas a shortage is a temporary market imbalance.

Entrepreneurial describes the mindset or behavior of someone who takes initiative, manages risks, and organizes resources to create value.

Factors of production are the inputs used in the production process to produce output, that is, finished goods and services. They include land, labor, capital, and entrepreneurship.

A want is a desire for something that is not essential for survival. This contrasts with a 'need', which is required for basic survival.

An entrepreneur is an individual who takes the initiative to create, organize, and manage a business venture, assuming the associated risks.