ENT3003 Exam 1 Ch.1-4 – Flashcards
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Entrepreneurship is a mindset that is
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- opportunity focused - risk taking - innovative - growth oriented
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Gartner's conceptual framework for the new venture creation process focuses on three variables:
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1. the entrepreneur and what he/she brings to the process 2. the environment (external variables i.e. industry, suppliers, and markets) 3. the organization (strategic aspects of the new venture i.e. focus, resources, and strategic partnerships)
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Earliest definition of entrepreneurship
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- proposed by Austrian economist Joseph Schumpeter - "creative destruction" - breaking down old ways of doing things to create new value
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Stevenson's definition of entrepreneurship
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the process by which individuals - either on their own or inside organizations - pursue opportunities without regard to the resources they currently control
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Behaviors that entrepreneurs undertake include
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- recognizing opportunity - gathering the resources requires to act on the opportunity - driving the opportunity to completion
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The only intrinsic characteristic of entrepreneurs
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passion - the drive to achieve something
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Integrated input/output model
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- proposed by Morris, Lewis, and Sexton - looks at which variables are put into the process in order to achieve a certain level of entrepreneurship
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Ronstadt's career assessment approach
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proposes that entrepreneurs make judgements about themselves, the new venture, and the environment based on where they are in their career
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As the leader, the entrepreneur plays 2 roles
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1. the catalyst, initiating and driving the process 2. the ringmaster, managing the process through all its changes
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Benefits of entrepreneurial process to society
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- economic growth - new industry formation - job creation
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Incremental innovations
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improvements made on existing technologies
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Knowledge economy
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brought about by increased globalization and competitive shifts towards more knowledge-based economic activity
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Mass mingling
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new trend in the consumer market that uses social media to make it easier to meet with people for a common purpose
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Nascent entrepreneur
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an individual who intends to start an independent business
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Nascent intrapreneur
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an individual who intends to start entrepreneurial ventures inside a large corporation/business
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Platform technologies
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serve as a fertile ground for startup ventures that license the technology and apply it in a number of different ways
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Networking
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the exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members
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Serial entrepreneur
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entrepreneur who starts one business and then moves on to start another
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Skunk Works
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autonomous group that is given the mandate to find and develop new products for the company that may even be external to the company's core competencies
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Strong ties
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the entrepreneur's close friends and family members whom he or she knows well
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Weak ties
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the entrepreneur acquaintances and business contacts
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Affirmative judgement
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looking for the strengths or positive aspects of a problem definition first
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Brainwriting
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getting ideas down on paper and then organizing ideas and creating themes
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Commercialization
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process that moves an innovation from the laboratory to the market and develops the business strategy
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Creation theory
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entrepreneurs create opportunities via their actions, reactions, and experiments around new products, services, and business models
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Discover theory
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opportunity arises from shifts in external factors in the market or industry
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Innovation
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finding a new way to do something or improving on an existing product or service
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Invention
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- discovering something that did not exist previously - creativity is the basis for invention
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Network
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a system of information exchange and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members
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Business concept
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a concise description of an opportunity that contains four essential elements: the customer definition, the value proposition; the product/service; and the distribution channel
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Business model
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a model that is created once the business concept is identified; it addresses how the company creates value for the customers and what the organization must do to become or remain viable
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Commitment pyramid
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a depiction of the relationship between the location of the business in the value chain and the time commitment, level of risk, and financial capital required
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Compelling story
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narrative that surrounds the business concept that adds color and texture and gives meaning to the venture and the audience a reason to invest
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Concept statement
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a statement of the business concept; also referred to as the elevator pitch
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Elevator pitch
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term applied to the idea that entrepreneurs only have a few seconds to get an investor interested in the business concept
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Feasibility analysis
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tool that is used to assess and reduce risk at startup
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Intermediaries
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when services or products aren't delivered directly to the customer, they often go through distributors and realtors
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Keystoning
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when a retailer charges twice as much for an item as it costs to purchase the item from the distributor or sales rep
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Markup
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the price increase that occurs at each stage in the value chain
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Transaction fee
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costs associated with distribution
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Value chain
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the distribution channel that is a central part of the business concept
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Value proposition
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the benefit that the customer derives from the product or service the entrepreneur is offering
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The decade of entrepreneurship
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1980s
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Women comprise how much of all entrepreneurial activity
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one-third
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Within which sector are entrepreneurs taking advantage of several sub-trends, including eco-iconic marketing
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green sector
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Which school of thought proposes an integrated input/output model to describe the entrepreneurial process
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Morris, Lewis, and Sexton
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Which country is growing faster than any modern economy
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China
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According to the small business administration office of advocacy, how many new businesses survive at least 5 years
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one half
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Which microprocessor affected the technological revolution of the 1970s
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intel
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What type of economy did the new millennium usher in
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knowledge economy
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Most of the great businesses that have been successful for the last 50 years did not start with
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a great idea
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The 2008 Global Entrepreneurship Monitor Report found that men and women in which age bracket are responsible for 36% of all the entrepreneurship activity in the US and for 22% of activity globally
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45-98
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Peter Drucker asserted, "the entrepreneurial mystique, it's not magic, it's not mysterious, and it has nothing to do with genes. It's..."
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discipline
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Entrepreneurs rely on which ties for objective advice
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weak ties
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Who serves as gateways to other networks, exerting influence between groups or networks rather than within groups
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network brokers
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Entrepreneurs know how to extract what from ideas to create commercial potential
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value
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No time for creativity, lack of confidence, and absence of creative skills are all examples of
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creativity roadblocks (personal, problem solving, and environmental)
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What on a regular basis trains the mind to shift quickly into the creative mode
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contemplation
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Disruptive innovations
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can find no identifiable market in the earliest stages of development
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Which is not a component of a business model
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action plan
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The strategic choices that a business model addresses should reflect what
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value creation and value capture processes
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What is not essential to a business concept
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revenue model
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The first two steps in building a business model involve
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identifying position in the value chain and creating customer value
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The value chain includes what
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the distribution channel
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What do businesses that produce both products and services provide, which gives the company a competitive advantage
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multiple revenue streams
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The question of how to deliver the benefit to the customer is answered by
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the distribution channel
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What should give the entrepreneur confidence that the solution being provided is recognized as valuable by customers
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market research
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The illumination step in Wallas' creative process brings the idea to an outcome
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false, this is the verification step
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Period of time prior to firm birth, activities undertaken that are often unclear and subject to change as more info is obtained
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fuzzy front end
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Who was Nourish International founded by
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a group of students
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Entrepreneurship that is characteristic of small lifestyle businesses
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replicative
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What kind of economies do Denmark, Israel, the US, and the United Arab Emirates have
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innovative driven economies
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Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control
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true
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Strictly speaking, Schumpeter did not see ____ as innovation even if they generated economic growth
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incremental improvements
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The best question to ask to define a problem is ____
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what is the source of the problem
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Toward the end of the 1980s, researchers observed that young entrepreneurial ventures were ____ much earlier than expected and at a much smaller size
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internationalizing
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Critical entrepreneurial skills include ____
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opportunity recognition
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Today many enterprising people are turning to nonprofit ventures to realize their entrepreneurial dreams
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true
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Entrepreneurial-like ventures inside large companies are called
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corporate ventures
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Most businesses produce either a product or a service, but not both
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false
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Many weak business concepts can be eliminated from consideration ____
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by answering a few simple questions
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Drucker's five questions are the basis for the development of the business concept
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false
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Investors are moving away from written business plans in favor of a brief, well constructed executive summary or pitch
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true
