Entrepreneurship Ch 1-3 – 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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entrepreneurial process is affected by three categories of variables
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the entrepreneur and what he/she brings to process the environment (external variables) the organization (strategic aspects of the new venture)
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what are the forces behind economic growth
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technological innovation globalization shift of lower-skilled jobs outside U.S.
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new industry formation
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bell curve born, grow, decline, doe
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small businesses account for
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99.7% of all employers 45% of total US private payroll 65% of net new jobs
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economic development in three categories of countries
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factor-driven economies efficiency-driven economies innovation-driven economies
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factor-driven economies
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rely on unskilled labor and the extraction of natural resources. here businesses are created out of necessity. uganda, guatemala, algeria
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efficiency-driven economies
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economies that are growing and in need of improving their production processes and quality of goods produced. argentina, russia, south america
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innovation-driven economies
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which are the most advances, are where businesses compete based on innovation and entrepreneurship. denmark, israel, united states, united arab emirates.
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entrepreneurs bring something new to the marketplace having these characteristics
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innovative value-creating growth-oriented
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business survival has been attributed to
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sufficient capital having employees the entrepreneurs intention in starting the business
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1960s
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bigger is better diversification job security
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1970s
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macroeconomic turmoil international competition technological revolution deregulation
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1980s
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decade of entrepreneurship lean and mean takeovers anti-diversification small firm innovation
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1990s
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information age no job security fewer benefits service firm growth creative financing
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2000s
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knowledge economy rebirth of the commercial internet renewed interest in biotech/biomed low transfer costs emergence of new media companies
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entrepreneurial trends
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global economic turmoil green power the women's market the internet, social media, and mass mingling
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seven myths
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entrepreneurs start businesses solely to make money it takes a lot of money to start a business it takes a great idea the bigger the risk, the bigger the reward a business plan is required for success entrepreneurship is for the young and reckless entrepreneurship cannot be taught
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paths to entrepreneurship
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home-based entrepreneur serial or portfolio entrepreneur nonprofit entrepreneur corporate entrepreneur
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challenges with the entrepreneurial path
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finding the right business opportunity needing to work, often with no pay and long hours facing uncertainty and high risk needing to make major decisions affecting others lives relying on other people for expertise and resources having no previous experience on which to rely facing failure at some point finding the right people to help grow the business raising capital and other resources dealing with a sense of isolation and disillusionment
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opportunities with the entrepreneurial path
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becoming independent- taking charge of a career creating wealth doing well while doing good for society doing something the entrepreneur is passionate about creating new jobs supporting the community
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preparing for entrepreneurship
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find a mentor build a professional network learn about entrepreneurs understand personality and business preferences improve on or acquire new critical skills study and industry
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networking
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exchanging information and resources strong ties weak ties brokering
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barriers to self-employment
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lack of confidence financial needs startup logistics personal or family issues time constraints lack of skills
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critical entrepreneurial skills
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analysis and critical thinking persuasion and negotiation opportunity recognition written and oral communication resource gathering leadership and people management organizational and time management decision making calculated risk taking storytelling
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what does creativity mean
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enables entrepreneurs to differentiate their business from competitors basis for invention fundamental to problem soling critical skill for recognizing or creating opportunity in a dynamic environment
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four stage creative process
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preparation: looking at a problem from a variety of perspectives incubation: letting the problem lie in the subconscious for a time illumination: the discovery of a solution verification: bringing the idea to an outcome
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the seven stage dynamic of the creative process
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hearing the call fear and resistance resolution turning point creation manifestation fulfillment
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challenges to creativity
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no time for creativity no confidence
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developing creative skills
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design and environment to stimulate creativity log ideas put the familiar into a new context take advantage of a personal network return to childhood
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design and environment to stimulate creativity
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minimize distractions devote time daily to quite contemplation spend time int he places that best promote your creative thinking spend time with people in different fields of interest and move out of the comfort zone
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creativity and problem solving
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define the problem generate ideas for sources of the problem and potential solutions
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five categories of innovation
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new product or substantial change in an existing product a new process a new market new sources of supply changes in industrial organization
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innovation and commercialization process
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source: discovery, invention, market need research prototype validation production launch diffusion, adoption and response
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sources of innovation
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customers unexpected news events newspapers and magazines trends and patterns of change observation new government regulation demographic shifts emerging industries small businesses business operations
