Glossary

A form of logical inference in which you start with an observation and jump to a theoretical explanation that is subsequently tested to see if the explanation fits the observation. Abductive logic leads to a series of hunches or educated guesses about what caused or causes the observations, but these might actually prove false. (See also inductive logic, deductive logic.) Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Ongoing mass extinction of species during the modern era, for the past 10,000 years.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Political and economic term used to designate the economies on the edges of the Pacific Ocean as well as the various island nations within the region.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A way to organize assets and transactions in such a way that personal assets (such as the family home) are shielded from future liabilities or business failure.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Anything of value that is owned by you or your business.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Total revenue divided by number of subscribers. Used widely by consumer and digital companies.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An accreditation standard available for businesses that accounts for the lack of laws that make transparent a combination of employee, community and environmental interests in addition to economic motives.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An itemised statement listing the total assets, liabilities and net worth of your business at a given moment.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Long-term liability due to a loan from a lending institution.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Legal status of an organization or person who cannot pay their debts to creditors to whom they owe money.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Elements restricting new business entry into an industry, such as proprietary technology; limited access to distribution channels, raw materials and other inputs; cost disadvantages due to lack of experience; and risk.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A type of for-profit corporation in the USA that builds into its constitution the commitment to create value for its shareholders while being accountable and transparent to meet a purpose that benefits society and the environment.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Benefit variables are when you divide up your customer base according to their perceptions of benefits or advantages that they receive from a product or service. Some customers highly value quality, others performance, customer service or special features.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Strategies that leverage unique products that open up existing markets or stake out new markets.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The variety of plant and animal life found in an ecosystem and the variation in their genetic make-up. Biodiversity is a measure of the health of an ecosystem, with healthy ecosystems having greater variety and variation in plant and animal life than unhealthy ones.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The total mass of all the living organisms in a given area, population, habitat or trophic level, often expressed as kg/ha.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

All ecosystems on Earth, as well as the Earth?s crust, waters and atmosphere, on and in which organisms exist; also, the sum of all living matter on Earth.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An entrepreneur who adds value to natural ecosystems, akin to a business entrepreneur adding value to his private pocket or to shareholders, or asocial entrepreneur adding value to the community.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A popular digital currency invented to make international monetary exchanges and purchasing easier across the internet. It uses blockchain technology and is one of a class of digital currencies called cryptocurrencies.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A digital technology that consists of blocks of information linked and encrypted together to form a chain that records the continuous series of linked transactions right from the original source.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The strategy of seeking a market space that is not yet contested or that remains unidentified by competitors. Also, the strategy of creating new market spaces to avoid the tightly held known markets that competitors hotly contest for customers.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A nascent or new firm that internationalizes, e.g. begins exporting, from inception. (See also incrementalist approach.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The major priority of the organization in terms of its measure of value created. Typically, it is economic but increasingly social and environmental value is being included. (See also triple bottom line.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A technique for creative idea and solution generation through unstructured group discussion. Every member of the group thinks aloud and suggests as many solutions as possible, no matter how eccentric or unusual they might be.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The method of determining the point at which a company makes neither a profit nor a loss. The break-even point for a product is the point where total revenue received equals total costs.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Describes an entrepreneurial venture that combines presences offline (bricks) and online (clicks), sometimes with the third extra, flips (physical catalogues).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Our Common Future is a report from the United Nations World Commission on Environment and Development (WCED) and was published in 1987.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A statement of estimated income and expenses over a specific period of time.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A core component of hypothesis-driven entrepreneurship methodology. First, build a minimum viable product, then measure and learn using actionable metrics that feed back into the next iteration.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

In a lease contract, the amount given to the tenant by the landlord to build- out the premises.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A private investor who contributes money and experience to early-stage investments.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An entrepreneur driven by the profit motive (as opposed to social entrepreneurs), who seeks growth and profits within the business world.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

When a fall in revenues and/or rise in expenses are of such magnitude that the firm becomes insolvent.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The act and procedures of starting a business.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

How a venture is designed to make money, demonstrating a clear method of getting to the market for sales.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A one-page visualisation or depiction of how you create customer value in terms of content, structure and operation. First devised by Alex Osterwalder in 2004, it gives entrepreneurs a common language and a visual framework. (See also lean canvas.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The architecture of how we exploit a new opportunity, product or service. It describes the logic of value creation by depicting how an enterprise works.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The written document that details a proposed venture. It must illustrate current status, expected needs and projected results of the new business.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The calculated value of the business, used to track its increases or decreases.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An agreement designed to handle situations in which one or more of the entrepreneurs wants to sell their interest in the venture.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An entrepreneurial behaviour whereby information and/or expertise is sought to evaluate whether the risk involved in pursuing an opportunity is calculable and worthy of the potential loss.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

(1) The amount invested in a business by the proprietor(s) or shareholders. (2) The money available for investment or money invested.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A type of budget used to plan expenditures on assets whose returns are expected to last beyond one year. (See also budget.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A budgeting process used to determine investment decisions, i.e. how to invest new capital to increase value in the company (for example, through machine replacement or R&D). It relies heavily on evaluation of cash inflows.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An economic system based on private ownership of the means of production. Individuals, companies or corporations invest in, own and share in profits (or losses) of the entities that produce goods, distribute products or provide services.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Removing carbon from the atmosphere and depositing it in a reservoir such as soil, trees and plants, geological formations and oceans. Reduces greenhouse gas and global warming.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The entrepreneurial risk associated with the potential for career damage or loss. Managers with a secure job and benefits often experience this when they consider whether they can go back to their old job if their venture should fail.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Coins, currency and cheques on hand, as well as money in cheque and savings accounts.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A measure of the movement of money within a business venture, including all outflows and inflows. Usually measured for a specified period of time either in the past or in the future. The flow of money in must provide timely coverage for any necessary flows of money out of the business venture. Never, even temporarily, run out of cash flow.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A budget that provides an overview of inflows and outflows of cash during a specified period of time. (See also budget.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A financial statement that sets forth the amount and timing of actual and/or expected cash inflows and outflows.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The proportion of people who view an ad who then click on a link. Useful metric for measuring effectiveness of a call-to-action or pay-per-click ad.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The change in global climate patterns apparent from the mid to late 20th century onwards, attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A conceptual framework for considering climate change as an economic problem, that examines public policies and the trade-offs among them, and discusses the potential complications and benefits of international coordination.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Collaboration between two or more parties to produce a product, service or other outcome that has shared benefit. Usually involves the customer as one party in a marketing sense but other co- creators may be suppliers or investors.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Also known as co-promotion, this means two or more companies cooperating to market or promote each other's products.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Refers to mental processes, including attention, memory, language production and comprehension, problem solving and decision-making.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An unsolicited visit or telephone call made by someone trying to sell goods or services.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The process of introducing a new product into the market; sequence of actions necessary to achieve market entry and general market competitiveness of new innovative technologies, processes and products.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The human tendency to interpret new evidence as confirming existing beliefs, especially true for exciting entrepreneurial ideas.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

See pain.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The percentage of each sale that remains after the variable costs are subtracted.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The degree of control an owner legally has over the firm, which can affect its valuation.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Narrowing the scope of possibilities to devise the single best answer to a problem.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A visual representation of the journey that buyers take, from visitors to customers to brand ambassadors for your company.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

In an online advertising campaign, the average number of sales, enquiries or subscriptions per ad click, shown as a percentage.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A social business model, a non-profit association of people coming together voluntarily to meet some common need through a jointly owned and democratically controlled venture.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An association operating on a service motive, which provides services to its members and receives limited return of capital. Unlike a company, all members of a cooperative have only one vote, irrespective of their shareholding.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Couple with a personal relationship in addition to a business relationship.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A legal protection that provides exclusive rights to creative individuals for the protection of their literary or artistic productions.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A type of angel investor, typically a senior manager who has been laid off with a generous severance or has taken early retirement.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The entrepreneurial behaviour of people within large firms and organisations. (Related terms include intrapreneurship, innovation and venturing.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Another word for intrapreneurship or corporate entrepreneurship.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The sensitivity of costs to changes in production or sales volume. Fixed costs are constant. Variable costs vary, but the cost per unit does not.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The value of products sold to customers in a given period, determined by subtracting the value of the ending inventory from the sum of the beginning inventory and purchases made during the period. Gross sales less cost of goods sold gives gross profit.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Cradle to Cradle Design (also referred to as Cradle to Cradle, C2C, cradle 2 cradle, or regenerative design) is a biomimetic approach to the design of products and systems that models human industry on nature's processes viewing materials as nutrients circulating in healthy, safe metabolisms. (Wikipedia)

The natural ability to come up with new ideas and the courage to try them out.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A process of exploration, selection, combination, refinement and reflection to create a new idea or innovation.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The generation of ideas that results in improved efficiency or effectiveness of a system.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Understanding the world through reasoning and creativity. Involves analysing, evaluating, interpreting or synthesising information and applying creative thought to form an argument, solve a problem or reach a conclusion.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A class of digital currencies invented to make international monetary exchanges and purchasing easier across the internet.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Items on the balance sheet listed as assets, such as cash, accounts receivable, inventory and short-term investments that can be converted to cash and/or used to pay current liabilities within 12 months.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

See short-term liabilities.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The ratio of all costs spent on acquiring customers (marketing expenses) divided by the number of customers acquired.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A process of discovering, validating, recruiting, even creating customers that do not yet exist.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

This first step in the customer development process, in which you identify your customers by turning your assumptions into testable hypotheses.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

What customers are trying to get done,solve or satisfy. May be functional (e.g. perform a task),social (e.g. gain status),emotional (e.g. security) or basic needs (e.g. communication).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

What customers are trying to get done, solve or satisfy. May be functional (e.g. perform a task), social (e.g. gain status), emotional (e.g. security) or basic needs (e.g. communication).Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An estimate of the net profit from one customer over their lifetime; an element in calculating payback of advertising.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

See persona.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A targeted group of customers that fit a certain profile. Customer segments aid decisions on where and how a product or service will be marketed. May be defined in many ways, including geographic, demographic, and psychographic and combinations of these, or in any other way that narrows the focus toward a group of potential purchasers, either individuals or businesses.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

The process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A person who seeks to profit by registering an unclaimed internet domain name knowing that it is likely to be sought after by another person, business or organisation.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

A destructive side existing within the energetic drive of successful entrepreneurs.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Financing in which you get a loan and go into debt. You are obliged to repay the loan at a predetermined interest rate.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Also known as top- down logic, a type of logic that generates conclusions by reasoning from one or more theoretical statements (premises). (See also inductive logic, abductive logic.)Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

Destruction of forests to make land for agriculture. Cutting down trees, which provide oxygen and absorb carbon dioxide, is seen as a cause of increased greenhouse effect. Deforestation also entails the destruction of animal habitats.Glossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)

An economic theory that responds to the limits-to-growth dilemma and supports downscaling of production and consumptionGlossary term from Asia-Pacific edition of Entrepreneurship Theory Process Practice (Melbourne: Cengage, 2019)