Chapter 1 Flashcards
Practicing Entrepreneurship (21 cards)
What is entrepreneurship ?
A way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them (p.4)
List the six most important features of modern entrepreneurship.
- Entrepreneurship is a method that requires practice.
- Entrepreneurs think differently.
- Entrepreneurs act more than plan.
- Entrepreneurs aren’t driven purely by profit.
- Entrepreneurs collaborate more than they compete.
- Entrepreneurship is a life skill.
Explain the feature : entrepreneurship is a method that requires practice.
Entrepreneurship is not predictable, but rather a constant learning experience to better identify opportunities, embrace uncertainty, and act when you don’t have the information you want. (p.6)
Explain the feature : entrepreneurs think differently.
Saravasthy’s theory : effectuation, which is the future is unpredictable yet controllable through human action. So, entrepreneurs focus on creating a future with the resources they have now rather than predicting it. This means they create new opportunities, make markets, accept & learn from failure, and build relationships with stakeholders.
Who are the most common stakeholders?
Employees, customers, suppliers, shareholders, local communities, and governments.
Explain the feature : entrepreneurs act more than plan.
Act-Learn-Build is an evidence-based entrepreneurship, meaning you are learning as you do. You test if your idea works by collecting data rather than taking your time to write a business plan that may not work.
Explain the feature :
entrepreneurs aren’t driven purely by profit.
Highest performing companies do good for society and the planet while also making money. (p.8)
Explain the feature : entrepreneurs collaborate more than they compete.
The best networks can provide entrepreneurs with access to external sources of information, financing, emotional support, and expertise and allow for mutual learning and information exchange.
Explain the feature :
entrepreneurship is a life skill.
Ability to think and act more entrepreneurially is a necessary life skill that can help you get comfortable with uncertainty, accept change as a constant, and look at the world through a solution-driven, opportunity lens.
What are 7 ways to access entrepreneurship ?
- Corporate entrepreneurship
- Entrepreneurship inside
- Franchising
- Buying a small business
- Social entrepreneurship
- Family enterprising
- Serial entrepreneurship
What is corporate entrepreneurship ?
Process of creating new products, ventures, processes, or renewal within large corporations.
What is entrepreneurship inside ? aka intrapreneurs
Employees who think and act like entrepreneurs in any type of organization (big or small). Intrapreneurs feel like owners of their work and embrace experimentation ; they have a level of pride/engagement higher than the average employee.
What is franchising ?
Operator buys license from franchisor to do business using the company name and operating system. Turnkey operation. Pay royalties.
What is buying a small business ?
Buy out and take over operations.Only 30-40% of businesses sell.
What is family enterprising ?
Business managed by family members.Each generation brings organization forward.
What is serial entrepreneurship ?
Starting several businesses.Not satisfied with just one.Constantly look for next idea.
What is the distinction between entrepreneurship as a method and as a process ?
As a method : nonlinear constant learning and act on ideas. entrepreneur is in control of practicing the method.
As a process : linear steps to complete with the idea that we know already the inputs and predicted outputs. the process dictates the actions of the entrepreneur.
What is social entrepreneurship ?
Sourcing solutions to social problems.Sustainable Development Goals (SDGs).Benefit corporation (B Corp).
What is the Entrepreneurship Method ?
it is designed to embrace and confront uncertainty rather than avoid it. it has a thinking side and an acting side.
What are the seven components of the Entrepreneurship Method ?
- Come up with your why statement.
- Start with your means at hand.
- Describe the idea today.
4.Identify first or next actions
5.Enroll stakeholders - Calculate affordable loss
- Build on what you learn
What is the role of deliberate practice in entrepreneurship ?
Practice doesn’t make perfect; rather, deliberate practice does. Starting with specific goals, consistent, targeted effort for improvement. Feedback and self-reflection. Repetition.
