AFM131 Lecture Notes - Lecture 3: New Idea, Franchising, Affiliate Marketing

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Chapter 7 summary: entrepreneurship and starting a new business. For those who want more control over their destiny, working in or starting a small business makes sense. The word entrepreneur originates from the french word, entreprendre, which means to undertake. You can imagine how the concept of entrepreneurship has a wide variety of meanings. On the one extreme, an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme, anyone who wants to work for himself or herself is considered an entrepreneur. While many people use the terms entrepreneurship and small business interchangeably, there are significant differences. For example, this may occur within five years: risk - the risk of an entrepreneurial venture must be high. Otherwise, with the incentive of sure profits, many people would pursue the idea of entrepreneurship, making business ventures impossibly competitive.