• market gap
    An identifiable market segment that addresses customer needs not being addressed by competitors; also called niche market or market niche.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • marketing mix
    Actions a marketer can take to promote a brand or product. Usually referred to as the four Ps: price, product, promotion and place, but could today be replaced with the four Cs: co- creation, communities, customisation and choice.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • marketing strategy
    The general marketing philosophy of the company, which should include the kinds of customer groups to be targeted by the initial intensive selling effort; the customer groups to be targeted for later selling efforts; methods of identifying and contracting potential customers in these groups; features of the product or service (quality, price, delivery, warranty) to be emphasised to generate sales; and innovative or unusual marketing concepts that will enhance customer acceptance.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mechanical Turk test
    A method of experimental validation that uses a hidden human to simulate a technology in order to deliver potential customers the same experience with a fraction of the cost, thus postponing development until you prove market interest. Also known as Wizard of Oz testGlossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mental model
    The knowledge structures that people use to make sense of the world.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mental models
    The knowledge structures that people use to make sense of the world.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • metrics
    Assumptions and calculations used for any revenue projections.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • micro-credit
    Small loans (micro- loans) to aspiring entrepreneurs who lack collateral to offer as security to a bank, who are not steadily employed, who have no credit history or who only need a small loan.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • micro-finance
    A full range of banking services for poor people.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • micro-management angel
    An angel investor who imposes tactics that worked for their own company. Can be a bothersome angel.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • micro view of entrepreneurship
    Examines factors that are within the entrepreneur's ability to direct or adjust. (See internal locus of control.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • milestone schedule
    The section of a business plan that provides investors with timetables for the accomplishment of various activities, such as completion of prototypes, hiring of sales representatives, receipt of first orders, initial deliveries and receipt of first accounts receivable payments.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mind map
    A diagram used to visually organise information, showing hierarchical relationships among disparate concepts. Mind maps help generate, visualise, structure and classify ideas to look for patterns and insights that provide key design criteria.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • minimum viable product (MVP)
    A temporary product with just enough functionality to satisfy early adopters; solicits early feedback to be fed into future development with which you are able to test a product hypothesisGlossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mixed costs
    Part of the operating budget, a blend of fixed and variable costs. An example is utilities, since part of this expense would be responsive to change in activity and the rest would be a fixed expense, remaining relatively stable over the budget period. (See also fixed costs, variable costs.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • moral failure
    A violation of internal trust.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mountain gap strategies
    Strategies that leverage new and unique markets by identifying existing major market segments and going after the gaps in between larger markets.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • muddling mindsets
    Habits such as either/or thinking, security hunting, stereotyping and probability thinking that block or impede creative thinking.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • mutuals business model
    Business model of a private company in which the customers are also the owners, and receive profits and benefits.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • necessity-driven
    Describes an entrepreneur who starts a business because there are no better options for work, rather than because they see an opportunity. (See also opportunity-driven.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • need to achieve
    Characteristic of people with a high need for achievement, who seek to excel and thus tend to avoid both low-risk and high-risk situations.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • need to control
    The strong desire entrepreneurs have to control both their venture and their destiny.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • negative entrepreneurship
    Entrepreneurship characterised by an undervaluation of biodiversity and natural resources. Rather than adding value to living materials, negative entrepreneurs only aim to reduce (e.g. through recycling) the quantity of dead resources. (See also positive entrepreneurship.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • net income
    The excess of revenue over expenses during a particular period. If revenues exceed expenses, the result is a net profit. If the reverse is true, the firm suffers a net loss.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • net present value (NPV) method
    A method used in decision-making that measures the equivalent lump-sum value of a stream of payments over time. In effect, the NPV represents the amount that would need to be invested at a commercial interest rate at the beginning of the period of payments in order to meet all the payments as they fell due.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • new business start-up
    A business that is newly originated by an entrepreneur in response to some form of recognised opportunity to provide products and/or services to satisfy a perceived market demand.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • new four Cs
    In the marketing mix for social media, co-creation, communities, customisation and choice. (See also four Cs, four Ps, marketing mix.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • new-new approach
    A start-up approach to business in which a brand-new concept is introduced to a brand-new marketplace.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • new-old approach
    A start-up approach to business in which the concept provides a new angle to something that already exists in the marketplace.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • new-venture development
    The activities during the first or early stage of a new business or project that involves creativity and evaluation in forming the business.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • niche advantage
    An advantage created by offering a valuable and unique product and/or service specifically to a single, narrow market or customer segment. A market niche is usually a subset of a larger market or customer segment that has specific needs not addressed by competitors who seek volume sales from less- defined and larger customer groupings.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • non-compete clause
    An agreement as part of the purchase of an existing venture that the previous owner will refrain from conducting business in the same industry within a reasonable distance for a reasonable period of time. Also known as legal restraint of trade or an agreement to not compete.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • non-disclosure agreement
    An agreement between parties that the information specified by the agreement will not be disclosed to others. It binds the parties to protect the information discussed and keep it confidential.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • non-profit organisation
    An organisation whose main objective is not profit, such as a religious, charitable or educational institution.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • note payable
    See promissory note.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • one-night-stand test
    A method of experimental validation whereby you offer an early pretotype version of your service or product for a very limited time to a limited customer base to see if there is any interest. Also known as pop-up test.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • online marketing
    Advertising and marketing efforts using web and email to drive direct sales.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • ontology
    A way of explaining the nature of things that have existence and the relationships among them, usually depicted in some graphic form. (See also business model ontology.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • open innovation
    Innovation that turns to sources of ideas and support outside of an organisation, openly sharing the trials and rewards of innovation, as opposed to approaches that seek to protect, own and keep ideas and commercial development within an organisation.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • operating budget
    A detailed projection of all estimated income and expenses during a given future period.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • operating cash flows
    Cash generated from or used in the course of business operations of the firm. The net operating cash flows will be positive for most firms, because their operating inflows (primarily from revenue collections) will exceed operating outflows (for example, payment for raw materials and wages).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • operating expenses
    The major expenses of a firm, exclusive of costs of goods sold. These represent the resources expended, except for inventory purchases, to generate revenue. (See also selling expenses, administrative expenses.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • operational capabilities
    The capabilities inherent in maintaining the routine organisation and management of a firm in conducting its regular business.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • opportunity cost
    The cost of using a resource in terms of the loss of its alternative uses, measured by the value of the next-best alternative use of that resource.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • opportunity cost
    The cost of using a resource in terms of the loss of its alternative uses,measured by the value of the next-best alternative use of that resource.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • opportunity-driven
    Describes an entrepreneur who opts to start a business because they have spotted an available opportunity, and is prepared for and has the resources to carry it out. (See also necessity- driven.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • opportunity identification
    The recognition of a viable business opportunity within a variety of good ideas.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • opportunity propensity
    The predisposition to see and take on new ideas as new-venture opportunitiesGlossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • optimism bias
    When you think you are less likely to experience a negative event compared to others, for example, smokers who think they are less likely to contract lung cancer than other smokers.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • ordinary shares
    Shares, also known as common shares, that make up the vast majority of financial equity assets traded on the stock exchange. Shareholders with ordinary shares have the normal (or ordinary) rights as set out in the Corporations Act, 2001. (See also common shares.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • outbound marketing
    Marketing that uses traditional tools such as cold calling, email blasts or television ads, whether or not the customer wants it.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pain
    Pain is the nickname for exactly what problem is being solved by your venture. Painkiller solves the pain that the customer experiences. Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • partnership
    An association of two or more people acting as co-owners of a business for profit.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • patent
    An intellectual property right granted to an inventor giving him or her exclusive right to make, use or sell an invention for a limited time period (usually 20 years).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pathways principle
    Belief that proper preparation in the interdisciplinary business segments will enhance the ability to recognise venture opportunities.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • payback method
    A method of capital budgeting that measures the length of time taken for the return on an investment to exactly equal the amount originally invested.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • peer-to-peer lending (P2P)
    Loans typically funded by specific individuals lending their own money on a fractional basis at interest to specific borrowers.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • persona
    A semi-fictional representation of a customer segment in the B2C market. (If you B2B, there is an alternative called the organisata) based on real data and some educated conjecture about demographics, consumer behaviour, perceived pains and expected gains. Personas help to understand and visualise your target customers by describing the personality, interests, pains, goals and behaviour of a typical customer.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • personal failure
    A form of failure brought about by a lack of skill or application.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • petty crime entrepreneurship
    Lower forms of social enterprises, ranging from quasi-legal street peddling, which is an easy way to enter the market, to more criminal activities such as DVD pirating and money laundering.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pilot-in-the-plane principle
    In effectuation theory, this principle means that although the future cannot be predicted, entrepreneurs are in control, much like a pilot, who can control factors that determine the future course.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • Pinocchio test
    A method of experimental validation whereby you create a non-working version of your service or product so that customers can imagine that it is actually functional.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • planning fallacy
    A cognitive bias whereby entrepreneurs tend to underestimate the duration, costs and risks associated with a venture.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • platform business model
    A business model whereby the business acts as an intermediary between buyers and sellers, providing a platform that enables easy exchange. eBay has successfully implemented this model, with a network of sellers who access customers through the eBay online platform.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • point of view (POV)
    A meaningful and actionable problem statement resulting from a successful design challenge, when you are convinced that you have discovered the right problem to address.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • Ponzi scheme
    A scam in which high returns are promised and new investors must continue to be drawn in to pay off earlier investors.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pop-up test
    See one-night stand test.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • Positive entrepreneurship
    Entrepreneurship characterised by a commitment to making positive impacts by creating added value through eliminating designed waste, duplication, disposability, planned obsolescence and wasteful end purposes. (See also negative entrepreneurship.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pre-orders
    A pretotype test that lets you offer your product to potential customers before you even build it.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • prepaid expenses
    Expenses the firm already has paid, but that have not yet been used. For example, insurance paid on the company car every six months is a prepaid expense because it will be six months before the entire premium has been used.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pretotype
    A preliminary version of your product, usually a minimum viable product, that may fail or not even work, but allows feedback to be obtained from potential customers.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pretotyping
    The stage, before prototyping, where we develop early, low-cost virtual, physical and experiential artefacts for gaining feedback.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • price/earnings ratio
    A method of valuing a business by dividing the price of the common shares in the market by the earnings per share and multiplying the result by the number of shares issued.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • principal
    The amount of the entire mortgage loan, not counting interest.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • private equity market
    The collective pool or community of high-wealth individuals who are willing to invest significantly into later-stage ventures in exchange for shares in the venture (equity) accessed through private placement agents. Private limited company. See proprietary limited company (Pty Ltd).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • private offerings
    Raising of capital from friends, employees, customers, relatives and local professionals.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • private placement
    A method of raising capital through securities; often used by small ventures.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pro forma statement
    A financial statement projecting anticipated income, expenses and cash flow for some specified future period.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • probability thinking
    A reliance on probability to make decisions in the struggle to achieve security.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • problem-solution fit
    Correspondence between problem and solution, achieved when you have correctly identified your customers and why they need the product, and found an efficient and feasible way to solve their problem.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • product ecosystem
    A cluster of products and services that complement each other and work symbiotically to generate value for each other, for example, Nespresso, Apple or Jamie Oliver.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • product life cycle (PLC)
    The stages of time on the market through which a product progresses. Typically, life stages can be divided into introduction, growth, maturity and decline. Life cycles vary in stage duration with every type of product.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • product-market fit
    Correspondence between product and market, achieved when your early adopters love your product, you start bringing in late adopters and you are expanding the market.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • productive entrepreneur
    An entrepreneur who captures rents ethically through innovation and furthers growth. (See also unproductive entrepreneur, destructive entrepreneur, annihilative entrepreneur.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • professional angel
    A professional, such as a doctor or lawyer, who invests in companies that offer a product or service with which they have some experience. Also may refer to angel investors who invest as an occupation and in a manner that is rigorous and systematic, developed through repeated and intentional investment strategies.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • profit and loss statement
    Also known as an income statement, it is a financial record or account of all of a firm's revenues and all of the expenses and costs incurred by the firm in achieving those revenues that shows the level of profit or loss produced by the firm over a period of time.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • property laws
    The laws passed by governments that govern the ownership and rights of various forms of tangible and intangible property.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • proprietary limited company (Pty Ltd)
    In Australia, a form of privately held company that has limits defined with respect to its financial responsibility. Unlike a public company, a proprietary company cannot offer shares to the public for equity capital raising. Limits and meaning may vary depending on the regulatory law of the country in which the company is created. Same as private limited company in Australia.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • prototype
    In contrast to a pretotype, a preliminary version of a product that costs a lot of money and is produced as a final step before producing the actual product. In the prototype, you want to show all the features the product will have. (See also prototyping.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • prototype
    In contrast to a pretotype, a preliminary version of a product that costs a lot of money and is produced as a final step before producing the actual product. In the prototype,you want to show all the features the product will have. (See also prototyping.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • prototyping
    The stage, after pretotyping, where you develop an early version of the product or service for the purpose of testing design and assembly before producing the final marketable product.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • provinces test
    See one-night-stand test.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • psychic risk
    Risk relating to the great psychological impact on the entrepreneur who is creating a new venture.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • psychographics
    Attributes relating to personality, values, attitudes, interests or lifestyles, as opposed to demographic variables such as age and gender.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • public limited company
    A company whose liability is limited by shares which are traded publicly in Commonwealth countries (other than Australia).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • public sector entrepreneurship
    Entrepreneurship that combines public and private resources in pursuit of social objectives.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • pyramid scheme
    An illegal scheme whereby sellers attract payment from people on the promise of a return on their investment based on their selling to others who also buy into the scheme. This continues in a pyramid fashion, with a percentage or proportion of the sales always flowing to those who recruit sellers. Those at the top collect fees from all those below until there are no further recruits and the sales are saturated. This forces the pyramid to collapse, with no further sellers recruited or funds collected by those at the base of the pyramid. Those at the top, initiating or getting into the scheme early, win; those at the bottom, late into the scheme, lose.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • razor and blades
    A business model where the introductory item is sold at a low or no price so that the consumer must buy complementary products later, for example, razors and razorblades, or printers and cartridges.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • re-engineering organisations
    Organisations engaging in the practice of renovating and re- configuring organisational cultures, management techniques, structures, systems, processes and values, particularly to achieve high levels of innovation and enterprise.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)
  • reachable market
    The immediate reachable group of customers that will be targeted by a new venture.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)