Key Terms
Entrepreneurs
Individuals who recognize and pursue opportunities, take on risk, and convert those opportunities into value-added ventu
Social entrepreneurship
Creating innovative solutions to social or environmental problems.
Corporate entrepreneurship
New products, processes, and ventures created within large organizations.
Family entrepreneurship
Business owned and managed by multiple family members across generations.
Serial or habitual entrepreneurship
Starting multiple businesses simultaneously or in sequence.
Lifestyle entrepreneurship
Venture built around a personal lifestyle, not solely for profit.
High-technology entrepreneurship
Ventures in information, communication, and technology.
Potential entrepreneurs
Believe they could start a venture and do not fear failure.
Nascent entrepreneurs
Setting up a venture less than 3 months old that has not yet paid wages.
New business owners
Operating a business more than 3 months but less than 3.5 years.
Established business owners
Actively operating a business over 3.5 years old.
Total Entrepreneurial Activity (TEA)
The percentage of adults (ages 18-64) who are either nascent entrepreneurs or owner-managers of a new business.
Factor-driven
Least developed; rely on agriculture, extraction, unskilled labor, natural resources. High entrepreneurship rates becaus
Efficiency-driven
More competitive; use advanced production processes for better products and services.
Innovation-driven
Most developed; rely on knowledge-intensive industries and expanded service sectors.