Chapter 1-3 quiz, Entrepreneurship launching a new venture,

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What influences self-efficacy
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Mastery Small steps. Manage to do something and then take a small step further. Modelling Observe others – society, closer sphere. Social persuasion. People around you. How other view tasks.
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What are the two definitions of entrepreneurship?
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Entrepreneurship is defined as the process by which individuals pursue opportunities without regard to resources they currently control. The art of turning idea into a business
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State four different types of entrepreneurship in established firms..
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Corporate entrepreneurship Highly conservative to highly entrepreneurial Entrepreneurial firms Conservative firms
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What are the three main reasons people want to become entrepreneurs?
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1.Be their own boss 2.Pursue their own ideas 3.Realize financial rewards
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What are the four main characteristics of a successful entrepreneur?
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Passion for the business.. Product/customer focus.. Tenacity despite failure.. Execution intelligence..
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Name 13 different sub characteristics of a successful entrepreneur.
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-Whether of a new firm or existing business -Making a difference in peoples lives -Not only a passion -Enthusiastic of an idea but also understand its potential flaws and risks -Most effective business = when passion is consistent with skills in an are representing a legitimate business opportunity. -Two most important elements in a business Focus on right things. -To spot product opportunities – see them through competition -Ability to fashion a solid idea into a viable business -Whether a start-up is successfully or fail -Developing a business model -Putting together a new venture team -Raising money -Establishing partnerships -Managing finances -Leading and motivating employers -The ability to translate thought, creativity and imagination to action and measurable results
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What are the three different types of start up firms?
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– Salary-substitute – Lifestyle – Entrepreneurial
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What are some impacts that entrepreneurship have had on society, economy and larger firms?
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-New product makes life easier -Innovations do create moral and ethical issues with which societies are forced to grapple. -Small firms = providers of a significant share of the innovations -Small business = creators of most new jobs, employ more. -Positive impact of larger firms -Some entrepreneurial firms are original equipment manufacturers, producing parts that go into products that larger firms manufacture and sell.
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What are the four steps of the entrepreneurial process?
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1.Deciding to become an entrepreneur– 2.Developing successful business ideas– 3.Moving from an idea to an entrepreneurial firm– 4.Managing and growing the entrepreneurial firm–
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What does the entrepreneurial cycle look like?
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Entrepreneurs–generates–>New Value–Leads to–>Societal change–Creates–>Entrepreneurial opportunities–Discovered and exploited by–> Entrepreneurs
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What are the differences between an idea and an opportunity?
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An opportunity is a favorable set of circumstances that creates a need for a new product, service or business. An idea is a thought. Not all ideas are great business opportunities.
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What are the differences between internal and external stimulation?
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Externally stimulated Decides to launch a firm searches for & recognizes opportunity start a business E.g. selling books online Internally stimulated Recognize problem or an opportunity gap creates business to fill it E.g. Niche products
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What are the three approaches to identifying a good opportunity? Describe the three approaches.
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Observing trends, Solving a problem, Finding Gaps in the Marketplace. –Observing trends– -Economic Forces- Helpful in determining areas that are ripe for new business ideas as well as areas to avoid E.g. climate, business cycles, income levels (who has money to spend), disposable income, spending patterns (what people spend money on). -Social forces- Social and cultural trends, demographic changes (aging population), level of education, income distribution Often the reason that a product or service exists has more to do with satisfying a social need than the more transparent need the product fills. -Technological forces- Advances in technology frequently dovetail with economic and social changes to create opportunities. Key = how technologies can be used and harnessed to help satisfy basic needs -Political Action and Regulatory changes- E.g. government stability, taxation, foreign trade regulations, war, communism, market economy, legal and regulatory changes (new laws or deregulations of markets) –Solving a problem– Finding problems in the daily life and then solve them with a product or service. –Finding Gaps in the Marketplace.– Products that consumers need or want that aren’t available in particular location (or at all) Related technique for generating new business ideas is to take an existing product or service and create a new category by targeting a completely different target market.
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Five positive personal aspects of a good entrepreneur.
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Opportunity recognition, prior experience, Cognitive factors, Social Network, creativity
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Five different ways in which entrepreneurs could generate an idea.
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Brainstorming, Focus groups, Library and Internet research , Other techniques, Day in the life research
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What is an idea bank?
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physical or digital repository for storing ideas. E.g. a password-protected location on a firm’s intranet that is available only for qualified employees.
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What is a Intellectual property?
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any product of human intellect that is intangible but has value in the marketplace. Protected by tools = patent, trademarks, copyrights, trade secrets.
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Define (Action orientation) effectuation
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start with what you have – Begins with a given set of means Allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with
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Define (Managerial) causation
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strategic. Get what you need – Begins with a pre-determined goal and a given set of means – Seeks to identify the optimal (fastest, cheapest, most efficient etc.) alternative to achieve the given goal
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What are the two different types of start up business?
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(Managerial) causation, (Action orientation) effectuation
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What is the definition of a feasibility analysis?
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Is the process of determining if a business idea is viable. Is an assessment of a potential business rather than strictly a product/service.
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How does the process of a feasibility analysis look like?
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–Recognizing a business idea– –Testing the feasibility of the idea– –Writing a business plan– —Launching the business– –If it fails on one or more in the analysis – it should be dropped or rethought. Failing to properly investigate the merits of a business idea before the business plan is written – runs risk of blinding and result in too positive of a plan.–
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What are the five points that should be included in the preliminary description presented to an expert?
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A description of the product/service – details the features (sketch)—- The intended target market – list of consumers/businesses expected to buy—- The benefits of the product/service – how it solves problem—- A description of how the product/service will be positioned relative to competitors.—- A brief description of the company’s management team—-
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What are the definitions of an industry and target market?
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Industry: a group of firms producing the similar product/service. Target market: the limited portion of the industry that it goes after or to which it wants to appeal.
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How do you determine if a business has sufficient management expertise, organizational competence and resources to successfully launch a business?
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T..w..o p..r..i..m..a..r..y i..s..s..u..e..s..: –Management Prowess– Two of the most important factors in this area: The passion that the solo entrepreneur or the management team has for the business idea The extent to which the management team or solo entrepreneur understands the market in which the firm will participate –Resource Sufficiency– Whether the venture has or is capable of obtaining sufficient resources to move forward. Focus is on nonfinancial resources -skills of the employees
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What are the most important issues to consider during a financial feasibility analysis?
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–Total Start-Up Cash Needed– Budget should be prepared – list all the anticipated capital purchases and operating expenses needed –Financial Performance of Similar Businesses– Gather financial data – online –Overall Financial Attractiveness of the Proposed Venture– Financial statements: cash-flow, income statement, balance sheet
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Describe the process of ‘First Screening’..
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Maps the four areas of feasibility analysis – the most important points in each area “Overall Potential” – sections that allows suggested revisions to a business idea to improve its potential or feasibility
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What are the two techniques for discovering the demand of a product/service?
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Buying Intentions Survey. Library, Internet, and Gumshoe Research.
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Two components in the analysis of target markets and industries
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Introduce a new product into an existing market. Introduce a new market to an existing product. Top 3 factors (more receptive to new entrants): Industries that are young rather than old, are early rather than late in their life cycle, and are fragmented rather than concentrated,
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Why is a Organizational Feasibility Analysis conducted?
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Conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch a business.
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What are the two main issues with the Organizational Feasibility Analysis?
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Management Prowess Resource Sufficiency
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Define Management Prowess
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The passion that the solo entrepreneur or the management team has for the business idea. The extent to which the management team or solo entrepreneur understands the market in which the firm will participat
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Define Resource Sufficiency
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Whether the venture has or is capable of obtaining sufficient resources to move forward. Focus is on nonfinancial resources -skills of the employees

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