Business dictionary

The provision of small financial services, such as loans, insurance, or savings accounts, to individuals or small businesses that do not have access to traditional banking services. The goal of microfinance is to empower individuals or communities living in poverty by providing them with the opportunity to start or expand businesses, improving their living conditions and fostering economic development.

Αn investment vehicle that pools money from multiple investors, managed by a professional fund manager, to invest in a diversified portfolio of stocks, bonds, or other financial instruments, based on the fund’s objectives. This allows investors access to opportunities they might not individually afford and reduces investment risk through diversification.

A concept from product development that refers to the simplest version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least amount of effort. An MVP typically includes only the core features necessary to meet the needs of early adopters and to test the key hypotheses about a product or service. The goal is to launch quickly with a functional version to gather feedback and refine the product before investing more time and resources into additional features or improvements

Resources that occur naturally within the environment, such as water, minerals, and forests.

A customer loyalty metric that measures the likelihood of customers recommending a company, product, or service to others. It is calculated based on responses to a single question: “On a scale of 0 to 10, how likely are you to recommend our company/product/service to a friend or colleague?” Respondents are categorized as Promoters (score of 9-10), Passives (score of 7-8), or Detractors (score of 0-6). NPS is determined by subtracting the percentage of Detractors from the percentage of Promoters, providing a score that can range from -100 to +100. This metric is widely used by businesses to gauge customer satisfaction and loyalty.

A bank loan is considered non-performing when more than 90 days pass without the borrower paying the agreed instalments or interest. Non-performing loans are also called “bad debt”.

A financial document in which the issuer promises to pay a specified amount of money to a designated recipient, either on a set date or upon demand. The promissory note acts as a form of debt obligation and is commonly used in transactions or as a type of credit security.

The value stated on a financial instrument (such as a stock or bond) at the time of its issuance. For bonds, the face value is the amount the issuer promises to pay the bondholder upon maturity, excluding interest. For stocks, par value is the nominal value assigned to each share at issuance, and it is typically not related to the current market value of the share.

Exclusive rights granted to inventors allow them to use, sell, or license their inventions for a set period, typically 20 years. To qualify, an invention must be new, useful, and non-obvious. Patents encourage innovation by providing inventors with control over the commercial use of their inventions.

Α legal arrangement where the borrower provides security to the lender without transferring ownership of any asset. This security often relies on contractual terms or guarantees, granting the lender rights to ensure payment or fulfill obligations of the borrower.