Entrepreneurship and Innovation

Question 1

What is an Entrepreneur?

Answer 1

• driven by innovation, risk-taking, creation of new businesses

Question 2

What is a Manager?

Answer 2

• organising, controlling, optimizing

Question 3

Entrepreneurial characteristics

Answer 3

• high need for achievement
• internal locus of control
• willingness to take risks
• self-confidence

Question 4

Entrepreneurial skills

Answer 4

• negotiation skills
• networking skills
• leadership skills

Question 5

Legal forms of entrepreneurship

Answer 5

Proprietorship -> owned by a single individual
Partnership -> association of two or more persons
Corporation -> owned by many shareholders

Question 6

Sources of financial resources

Answer 6

Dept financing -> loan
Equity financing -> raising money by selling ownership

Question 7

Alternative forms of entrepreneurship

Answer 7

1. Entrepreneurship -> business in a business
2. Spin-Offs -> venture created by managers to market a new product
3. Franchise -> selling business idea

Question 8

Types of innovation

Answer 8

radical innovation: making prior technologies obsolete
incremental innovation: improvements of existing products
–> must add value and result in positive gain or improvement