MODULE 2

Question 1

SME entrepreneur

Answer 1

Small and medium enterprise, manage business by expecting stable sales, profits and growth

Question 2

IDE

Answer 2

Innovation driven entrepreneurs, focus on innovation profitability and sustained growth

Question 3

High growth startup

Answer 3

Type of IDE, goal is grow quickly and generate substantial financial returns

Question 4

Intrapreneurship

Answer 4

Startup inside larger companies that develop new products

Question 5

Entre opportunities

Answer 5

-new product for an existing company 
Ex. Opening a McDonald’s in a country that doesn’t have one
-new product for an existing market 
Ex. Apple AirPods 
-new product for a new market

Question 6

ABEL/BLEA

Answer 6

The test and learn approach

Ask>build>experiment>learn>

Build>launch>evaluate >adapt

Question 7

Design thinking

Definition and benefit

Answer 7

-process for creative problem solving that includes empathy/human centredness, ideation, and experimentation

Benefit: -reduce risk, users help create ideas and see them before they launch

• innovative ideas, user is always thinking about what they want/need
• organizational learning, continuous understanding of what customers want

Question 8

Design thinking process

Answer 8

EDIBT

empathize, define, ideate , prototype, test

Question 9

Causal reasoning

Answer 9

Thinking of desired outcome and then coming up with a plan to achieve the outcome

Question 10

Effectual thinking

Answer 10

Consider what a person had and arrive at a possible outcome from a range of possible outcome

Question 11

Trend

Answer 11

Source of potential entre ideas

Of movement in a field

Question 12

Societal trends

Answer 12

Ex. Aging demographics, health and fitness growth

Question 13

Technology trends

Answer 13

Mobile tech, e-commerce, internet advances

Question 14

Government trends

Answer 14

Increased regulations, terrorism

Question 15

Sources of ideas for new ventures

Answer 15

• work experiences, more than half of new ventures stem from this
• hobby or personal interest
• chance happening/ serendipity
• perceptual changes, people’s interpretation of facts and concepts
• education and expertise
• industry and market changes, shifts in marketplace caused by consumer attitudes and advances in tech

Question 16

Problem definition process

Answer 16

Establish the need for a solution

• what is the need/ desired outcome
• who benefits

Justify the need

• is it worth it?
• how will we ensure solution is implemented

Contextualize the problem

• what have others tried
• external and internal constraints

Write the problem statement

• many problems or one problem?
• what incentives are needed, what do solvers need to submit?

Question 17

Affordable loss principle

Answer 17

Upper and lower bound entrepreneurs are willing to lose

Can be zero

Question 18

Strategic partnerships principle

Answer 18

Focus on building partnerships instead of compatible analysis

Question 19

Leveraging contingencies principle

Answer 19

Dealing with surprises to determine entrepreneurial direction

Question 20

Causal versus effectual thinking

Logic:

Answer 20

C; extent we can predict the future and control it

E; extent to which we can control future (need not predict it)

Question 21

Causal versus effectual thinking

Where to start

Answer 21

C; given goals and assembling the means to achieve them

E; subject to resource constraints

Question 22

Causal versus effectual thinking

Attitude towards risk

Answer 22

C; expected return and risk management

E; affordable loss principle

Question 23

Causal versus effectual thinking

Attitude toward others

Answer 23

C; competitive

E; cocreational (customers, suppliers and prospective competitors)

Question 24

Causal versus effectual thinking

Attitude toward unexpected

Answer 24

C; avoid surprises

E; leverage surprises to offer new opportunities and innovation

Question 25

Bergqvist and the ice hotel

Answer 25

1. Start with a passion for ice and cold 2. Look for others that like ice. Surprise: Ice is transient (what makes it interesting) 3. Customer buy in 4. Surprise: Ice sculptures melt and people start making them into igloos 5. New goal: ice hotel 6. Creates new market

Question 26

Shimano

Answer 26

Company that manufactures arts for bikes. Observed: people liked the nostalgia of biking when they were kids Answer: started designing coasting bikes.

Question 27

Kaiser

Answer 27

Healthcare facility in the US whose goal was to improve healthcare for healthcare practitioners

Question 28

Opportunity evaluation

Answer 28

Will the idea work? Will it be good?

Question 29

Four primary areas of assessment Opportunity evaluation

Answer 29

The people behind the idea: -the make up of the time The resources available: -effectuation Knowledge and info about the industry and market: Ability to generate revenue:

Question 30

Assessing opportunities Result of four primary areas of assessment

Answer 30

How significant is the need to be satisfied

Question 31

Knowledge of industry checklist

Answer 31

What industry am I in What do I know about it Competitor analysis

Question 32

The visionary versus pragmatist

Answer 32

Visionary - Show distinctness and minimize competition - position positively to others Pragmatic - legitimate - understood

Question 33

4 techniques for balancing visionary/ pragmatic

Answer 33

Analogy -make connections to other kinds of business Classification -categorize to make ideas seem more visionary or pragmatic Authority -quotes from influential people Symbolic action -employ symbols to acquire resources

Question 34

Tension: style and substance

Answer 34

Style -pitch is passionate, energetic, interactive Substance -prepared (logical and laid out clearly)

Question 35

How venture capitalists assess a pitch

Answer 35

Passion is overrated : Trust beats competence: - how trustworthy someone comes across - lack of trust hard to make up for (can hire someone to make to for lack of technical expertise)! Coachability matters: -entrepreneur has to be open to advice or feedback Gender stereotypes play a role - VC are biased towards stereotypes

Question 36

Transition to growth

Answer 36

Most companies don’t want to grow but the ones that do grow survive longer

Question 37

Growing business Scaling

Answer 37

Penetrating existing markets and building operating capacity