Entrepreneurship means having a different mindset, and it is not limited to profitable projects. You may be an employee in the government sector and carry an entrepreneurial mindset with you and be able to solve many of the problems facing your organization, or you may be a member of a team in a private sector company and be able to devise solutions to meet the wishes and needs of clients.
Entrepreneurship comes from your sincere desire to take on every challenge that comes your way, or from your desire to make the world a better place for others.
Entrepreneurship is not the monopoly of a person, and it is a sense of responsibility, the ability to take initiative, and continuous attempts to build a better and happier society and world.
So, what are the most important terms in the field of entrepreneurship? This is what we will learn in this article.
But before we get started, let's get to know the biggest mistake most entrepreneurs make.
The biggest mistake entrepreneurs make:
The world of entrepreneurship contains many secrets and lessons that are different from the lessons learned from the typical way we are accustomed to working. The world of entrepreneurship is not limited to a specific time. It is very dynamic, and it needs a different mindset and different skills, which anyone can build or develop.
The biggest mistake that most entrepreneurs make is thinking that if they take a break from work, they will stop progressing and producing added values. The problem with this belief, besides that it is erroneous, is its contradiction with the physical laws of the universe.
If you plant a seed, you have to water it, and provide it with a suitable environment, but in all cases it will take time to grow and give results. When transferring the idea from the spiritual world to the physical world, you will need energy and space to reach the manifestation. Any manifestation in the physical world is subject to the laws of time and space.
Applying this law to the world of entrepreneurship, we conclude that if you put your energy into work every day without giving yourself space to rest, then you will disrupt the appearance of manifestation in your life because you broke the laws of the universe.
Balance is the basis of the universe. The balance between existence and action, and being and action is very important.
Whenever you resort to giving yourself a space to return to its existence, its serenity, away from all the distractions and inconveniences of life in parallel with your work, you increase your creativity and innovation as an entrepreneur, and you increase the unique ability of your intuitive mind to creatively connect things.
The most important terms of entrepreneurship:
If you are interested in the field of entrepreneurship, and you dream that one day you will be able to break into it, you definitely need to know the meanings of some specialized terms in this field.
Here is a list of some important terms:
1. Entrepreneurship:
Entrepreneurship: The process of identifying a specific business project to start and focus on, providing the necessary resources, organizing, and taking risks in order to achieve a financial profit. It is also defined as the process of creating a new organization or group of organizations, or developing existing organizations. It is precisely creating one or more new businesses or responding to new opportunities.
Many new business projects (pilot projects) seek financing either from venture capital, or from co-investors, and this is either to raise capital or to start a new project.
2. Entrepreneur:
Entrepreneur: An individual who starts a new company, takes the most risks, and enjoys the most rewards. An entrepreneur is usually seen as an innovator and a generator of new ideas, goods, services, works or procedures.
Businessmen play a major role in any economy by using the necessary skills and initiatives to anticipate needs and bring good new ideas to market. Entrepreneurs who prove their success in taking on the risks of start-up companies are rewarded with profits, fame, and opportunities for continuous growth. As for those who fail, they suffer losses and become less popular in the markets.
3. Startup Company:
It is a newly established company. It is still in the process of growth, searching for a market and funding sources, and striving to build and consolidate the brand, while building a profitable model that achieves growth and survival.
4. Lean Startup:
It is a new approach to starting startups with less money, time, and effort than traditional methods, with the aim of reducing market risks and avoiding the need for large initial funding.
5. Scale Up Company:
Companies that grow very quickly have an average annual return of at least 20% per year for the last three years, and have at least 10 employees.
6. Business Model
Business model is the company's plan to make a profit, and it defines the products or services that the company will sell, the target market, and the expected expenses.
A new business must have a defined business model if it is only in order to attract investment, help it recruit talent, and motivate management and staff. While existing companies have to often revisit and update their business plans, otherwise, it will fail to anticipate the trends and challenges ahead.
7. Business Plan:
Business plan: A written description of your future business, and a document that tells you what you plan to do and how you plan to do it.
Plan for businesses of a strategic nature. For example, you are starting with certain resources and capabilities in the current situation, and you want to reach a point further in the future (usually three to five years). By that time, you will have possessed a different set of resources and abilities, as well as greater profit and increased assets, as your plan shows how you will get from here to there.
8. Minimum Viable Product:
Minimum Viable Product (MVP): This concept refers to lean startups, and it is concerned with the impact of knowledge in developing new products. Eric Ries defines MVP as the version of new products that allows the team to gather the maximum amount of proven client knowledge with the least amount of effort. This knowledge comes from observing whether or not your clients will actually buy your product.
The main premise behind the idea of MVP is that you produce an actual product (maybe nothing more than a page, or an automated-looking service, but it is completely manual) that you can present to clients and monitor their actual behavior with the product or service. Seeing what people are actually doing with the product is much more reliable than asking people what they are going to do.
A Minimum Viable Product (MVP) is a product with few features whose construction is to provide a product that is viable for current use and future development. Some experts say a product is only considered a "minimum viable product" if it is usable and saleable. A Minimalist Viable Product has the basic rudimentary features of its use, and no more.
9. Prototype:
It is transforming the idea of any product, merchandise, app, or website into an interactive prototype, so that it looks like the final product when viewed. This allows its idea to be clearly communicated to potential investors during investment visits.
10. Social Entrepreneurship:
Social entrepreneurship is a type of business that aims to identify and diagnose social problems and needs and to use the principles of entrepreneurship to create, organize, and manage a social adventure that achieves the required social change. Social entrepreneurs measure their performance by material profit, as well as by the social value that the project provided to society. They seek to achieve a variety of goals, including the social, cultural, and environmental aspects.
11. Unicorn Company:
This term is used in the venture capital industry to describe a private sector startup with a value of more than 1 billion dollars. The term was first popularized by venture capitalist Eileen Lee, founder of Cowboy Ventures, a California-based start-up venture capital fund. Eileen described this term to me in an article titled: "The Unicorn Club" as a reference to the Silicon Valley companies that have made a huge leap and whose stock value has crossed the billion dollar mark, which is considered as miraculous and rare as the fictional "unicorn".
The term (unicorn) can also refer to the phenomenon of recruitment in the human resources sector, as human resource managers may have high expectations for filling a position, which leads them to search for candidates with higher qualifications than required for a particular job. That is, they are looking for the "unicorn" candidate.
12. Boost Strapping:
Self-financing builds the company from the ground up relying on personal savings and lots of luck, while the money comes from the first sales. The term also uses the name Bootstrap for an entrepreneur's work with little money and no outside sources of funding.
13. Startup financing:
It is a funding provided to the startup to be used in product development and initial marketing. It is financing for companies that have not yet sold their products in the commercial market.
14. Crowd Funding
A mechanism that relies on raising funds of limited amounts through an electronic platform called the Collaborative Funding Platform, operated by a company for this purpose. Crowd funding is defined as a modern form of finance, where the project owner presents their idea to people via electronic platforms for a specified period of time until they obtain the required amount to implement their project.
Collaborative finance is managed by creating a direct relationship between entrepreneurs and shareholders (the public).
15. Angel investors:
They are businessmen or professional people with great wealth; They finance start-up projects with their own money. There is a difference between angel investors and venture capitalists who fund startups with other people's money rather than their own.
Angel investors usually invest in startups with huge amounts of money that can reach millions of dollars. This is what secures the startup company with the required and necessary funding.
What distinguishes relying on angel investors is that by relying on them in the post-startup stage of the startup, the company will obtain the necessary funding for its operations.
But there is a major downside to relying on angel investors, which can be summed up in the ownership problem. They buy a stake in the startup that can reach up to 50% of the company.
16. Startup Incubator:
Startup incubators are companies or organizations geared toward accelerating the growth and success of early-stage startups. Investments are often made by angel investors, some governments, or other investors. Business incubators differ in their strategies. Some have headquarters that enhance communication between entrepreneurs and trainers, while others operate on a virtual basis.
Most incubators have specific capital to invest in a project or links to potential funding sources. There is access to many services provided by incubators, such as obtaining training by specialists and legal services, not to mention connecting with other entrepreneurs in the incubator.
17. Profit:
It is the goal of all economic projects, and to reach it, the entrepreneur is ready to put in the effort, time, and the necessary funds to invest and take risks. It is the amount of commercial gain resulting from the difference between revenues and expenses. If it is positive, it is profit, and if it is negative, then it is loss.
Conclusion:
Entrepreneurship needs the integration of several elements, such as mindset, skills, knowledge, resources, and passion, and each of us carries this thought, but we need to strive hard continuously and positively in order to build better societies. In parallel, we must study this area in depth to understand all its terms and conditions, which helps delve into it strongly.
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