3.4 Key Terms

business model
plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process

competitive advantage
describes your venture’s unique benefits that poise it for growth

creative destruction
theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment

customers
people the business will be serving, including potential customers from one or more market segments

demand
need or desire for the outputs, the product or services

demographics
statistical factors of a population or group, such as information about age, gender, income, race, or ethnicity

entrepreneurial opportunity
point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service and meets the following conditions: significant market demand, significant market structure and size, significant margins, and resources to support the venture’s success

financial viability
long-term financial sustainability of an organization to fulfill its mission

gig economy
market system in which independent contractors fill a variety of positions

infrastructure
all resources the entrepreneur will need in order to launch and sustain a business venture

offering
actual product or service, its value proposition, and how you will reach and communicate with your target customers

opportunity screening
process used to evaluate innovative product ideas, strategies, and marketing trends, focusing on financial resources, skills of the entrepreneurial team, and competition

primary research
research that involves gathering new data

secondary research
research that uses existing data

shared economy
economy in which some assets are not in use, which may present an entrepreneurial opportunity

supply
amount of a product or service produced

SWOT analysis
strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses, opportunities, and threats related to business competition

unique selling proposition
marketer’s rationale as to why a product or service is different/better than the competitor’s products