Concepts

Question 1

Opportunity Creation

Answer 1

Opportunities emerge through interaction with the environment (does not wait for exogenous factors).

Question 2

Causation

Answer 2

A goal-driven process where an entrepreneur selects means to achieve a set objective — predicting the future.

Question 3

Born Global Firm (BGF)

Answer 3

A company that starts international operations shortly after founding, not following a gradual expansion path (Knight, 1996).

Question 4

International New Venture (INV)

Answer 4

A firm that seeks competitive advantage from use of resources and sales in international markets (Oviatt & McDougall, 1994).

Question 5

Venture Capitalists (VC)

Answer 5

Invest institutional funds into scalable startups in exchange for equity.

Question 6

Global Entrepreneurship Monitor (GEM)

Answer 6

A research program that measures economic growth from IE, both in entrepreneurial behaviour (individual) and national context (macro).

Question 7

Phases of Entrepreneurship

Answer 7

1) Intention,
2) activity,
3) Outcomes (i.e., patents, IPR, financial).

Question 8

Sensing

Answer 8

identification and assessment of opportunities at home and abroad

involves exploring opportunities such as technological possibilities, markets, consumer preferences and scanning the environment.

Question 9

Seizing

Answer 9

mobilizing of resources globally to address opportunities and capture value from doing so

Question 10

Transforming

Answer 10

continued renewal - entails transforming opportunities into a business

Question 11

Social Entrepreneurship

Answer 11

Defined as competitive firms that are owned and trade for a social purpose (Smallbone et al., 2001)

• Weerdawdena & Mort (2006) has collected 6 different definitions.

Question 12

International Entrepreneurship (IE)

Answer 12

The discovery, enactment, evaluation and exploitation of opportunities, across national borders, to create future goods/services (Oviatt & McDougal, 2005).

Question 13

Opportunities

Answer 13

(Alvarez et al., 2013).
A market imperfection - a potential of realizing economic wealth or blended value, i.e., financial, social, environmental.

Question 14

Founder’s dilemma

Answer 14

wanting to do Stat up alone (solo-founding) or attract cofounders (co-founding)

Question 15

Social Value Proposition

Answer 15

Austin et al. (2006) - Model: the overlap between opportunity, people and capital, surrounded by macroeconomic context.

Question 16

Types of Entrepreneurial Ideas

Answer 16

Matrix: x-axis = novelty, y-axis = usefulness.

Highly novel/less useful: strange.

Highly novel/highly useful: revolutionary.

Less novel/less useful: bad.

Less novel/highly useful: evolutionary.

Question 17

CAGE Distance

Answer 17

Cultural, Administrative, Geographic, and Economic distances between countries (Ghemawat, 2001).

Question 18

IEO

Answer 18

International Entrepreneurial Organization

Question 19

Business Plan

Answer 19

A long strategic document for investors, often very theoretical.

Question 20

Business Model

Answer 20

Explains how value is created and delivered, short and actionable.

Question 21

Crowdfunding

Answer 21

Raising capital from many individuals, usually online. Targets costumers rather than investors. Sense of community.

Question 22

Corporate Venture Capital (CVC)

Answer 22

Strategic investment from corporations into startups for insight, fostering innovation, and financial returns.

3 key points:
1) strategic alignment with parent company,
2) minority stakes (rather than 100%),
3) active support through mentorship, resources, experience, etc.

Question 23

Government Schemes in Startup Finance

Answer 23

Grants, loans, or guarantees aimed at reducing risk and encouraging innovation.

Question 24

Growth Strategies

Answer 24

Ansoff (1965) - growth matrix: market on x-axis, product on y-axis.

Market penetration, product development, market development, diversification.

Question 25

New Breed of Entrepreneurs

Answer 25

Due to globalization as entrepreneurs have more experiences in education, work, social, network, etc.

Question 26

Types of Internal Funding

Answer 26

Personal funds, family, friends.

Question 27

External Sources of Funding

Answer 27

Debt, equity, commercial banks, government schemes, bootstrapping, private equity, crowdfunding, risk capital.

Question 28

Private Equity

Answer 28

A professionally managed pool of money raised to make actively managed direct equity investments.

Question 29

Business Closure

Answer 29

A transacting entity stops activities and does not transfer ownership + remains independent of existing business (Storey & Greene, 2010).

Question 30

Measuring Business Closure

Answer 30

- Individuals saying they have closed or moved out of self-employment, - number of bankruptcies/insolvencies/liquidations, - number of companies/enterprises deregistered and - number of closed business bank accounts.

Question 31

Opportunity Discovery

Answer 31

Opportunities exist and are found (exogenous factors, i.e., demographic, tech. Dev., regulation, ...).

Question 32

Business Angels (BA)

Answer 32

Private (wealthy) investors who fund startups in the early stages, often providing mentorship.

Question 33

Homophily in group formation

Answer 33

members with similar ascriptive characteristics (e.g., gender, ethnicity...)

Question 34

Functional group formation

Answer 34

members with diverse achieved characteristics (e.g., leadership, occupational competency...)

Question 35

Status expectations in group formation

Answer 35

Individuals with high-status characteristics are more likely to attract other task-group members than individuals with low-status characteristics

Question 36

Network in group formation

Answer 36

The presence of prior network ties in a task group affects the extent to which the group exhibits diversity in ascribed and achieved characteristics

Question 37

Ecological in group formation

Answer 37

Task groups tend to be composed of members in the same geographic locale and/or industry

Question 38

Entrepreneurs trade-off

Answer 38

4 different ways to be a leader. Either wanting financial gains or control over the company. Rich = wanting to have more financial gains than control King = wanting to have control over the company and financial gains comes second Exception = both control over the company and financial gains Failure = has none of it.

Question 39

Principles of team formation

Answer 39

- rational process model of team formation = selecting members based on pragmatic instrumental criteria (complementary skills or work experiences to manage complexity and growth) - social psychological model = interpersonal fit that social and emotional support play in affecting human behaviour. (Positive social relations within a team can create a supportive context fostering innovation)

Question 40

Triple liabilities

Answer 40

liability of newness, smallness, and foreignness

Question 41

Stage of business growth

Answer 41

1) existing 2) survival 3) success