The ENTREPRENEURSHIP encyclopedia

Ecolabel is a logo or seal used to distinguish a product or service as environmentally friendly. These logos are typically a sign that an independent and reliable third party has reviewed and certified the product or service. Examples of ecolabels include: Green Seal, Cradle to Cradle certified, and Fair Trade Certification.

Endowment is an investment fund established by a foundation or nonprofit that makes consistent withdrawals from the invested capital. The principal investment amount is generally kept intact and grows over time, while the investment income is used as a revenue stream to support programs and operations. Building an endowment can be key to long-term sustainability.

Energy Audit is a tool or service designed to assess how much energy a home or office building consumes, and to evaluate possible ways to improve its efficiency. Individuals can perform simple audits themselves or have a professional energy auditor perform a more thorough audit for increased savings.

Energy efficiency is a broad term encompassing a range of technologies that use less energy to provide the same level of energy service as standard or traditional technologies. An example is a fluorescent light bulb, which provides the same amount of light as an incandescent bulb, but lasts longer and consumes less energy. An energy-efficient home may have energy-efficient appliances (which typically come with an Energy Star label), and may be weatherized or retrofitted to optimize efficiency.

A person who organizes, operates, and assumes the risk for a business venture.

Equity Financing involves investors, who provide capital for a company in exchange for equity, or partial ownership, of that company. Whereas debt financing puts the company on the hook for repayment, equity financing puts all of the financial risk on the investor. However, because investors incur that risk, their partial ownership of the company often entitles them to input on larger company decisions, and gives them a long-term financial tie to the company.