We have studied the physical conditions in the central 300 pc of the prototypical starburst galaxy NGC 7714. Our analysis is based on ultraviolet spectroscopy with the HST/GHRS and ground-based optical observations, and it also covers X-ray and radio data taken from the literature. The data are interpreted using evolutionary models optimized for young starburst regions. The massive stellar population is derived in a self-consistent way using the continuum and stellar absorption lines in the ultraviolet and the nebular emission-line optical spectrum. The central starburst has an age of about 4.5 Myr, with little evidence for an age spread. Wolf-Rayet features at the ultraviolet indicate a stellar population of ~2000 Wolf-Rayet stars. The overall properties of the newly formed stars are quite similar to those derived, e.g., in 30 Doradus. A standard Salpeter initial mass function is consistent with all observational constraints. The nucleus of NGC 7714 has a bolometric luminosity of (0.5-1)x10^10 L_solar and a mass of (5-10)x10^6 M_solar (if low-mass stars have formed). We find evidence for spatial structure within the central 300 pc sampled. Therefore it is unlikely that the nucleus of NGC 7714 hosts a single star cluster exceeding the properties of other known clusters. Contrary to previous suggestions, we find no evidence for a nuclear supernova rate that would significantly exceed the total disk-integrated rate. About one supernova event per century is predicted. Most of these events are associated with the core collapse of a hydrogen-free or -poor progenitor. An older stellar generation, with ages of tens of Myr and older, is suggested as well. This population is less concentrated toward the nucleus and extends over kiloparsec scales.