Unit 1 Flashcards
(85 cards)
What is Entrepreneurship?
A mindset that is: opportunity-focused, risk taking, innovative, and growth-oriented.
At its core, entrepreneurship is
about…
a novel entry into new or established markets, and about exploiting new or existing products and services.
According to Gartner’s conceptual framework, the role of entrepreneurship in the economy is affected by?
Three categories of variables:
- The individual entrepreneur and what he/she brings to process
- The environment (external variables)
- The organization (strategic aspects and resources of the new venture)
What are the step entrepreneurs go during the venture process?
- Identify an opportunity
- Conduct market research
- Validate a business model
- Acquire resources
- Produce the product or service
- Marketing and sales
- Designing and building a company
- Responding to the environment
As the leader, what two roles does an entrepreneur essentially play?
the catalyst: initiating and driving the process.
the ringmaster: in a three-ring (or more) circus, managing the process through all its changes.
The entrepreneurial process provides many benefits to society. What are the chief benefits among those?
economic growth, new industry formation, and job creation.
In general, entrepreneurial ventures have three primary characteristics. They are:
- Innovative
- Value-creating
- Growth-oriented
An entrepreneurial venture brings something new to the marketplace, whether it be a new product or service. Entrepreneur’s goal
is not small.
What numbers in our economy do small businesses according to U.S. SBA definition represent?
-99.7 percent of all employers
-pay more than 45 percent of the total U.S.
private payroll.
-generated 65 percent of net new jobs over the past 15 years.
What are the three categories of countries where different Economic development can occur?
- Factor-driven economies
- Efficiency-driven economies
- Innovation-driven economies
Survival of businesses has been attributed to:
sufficient capital, having employees, and the entrepreneur’s intention in starting the business.
How did entrepreneurship evolve throughout the decades?
1960s: Bigger is better. Diversification. Job security.
1970s: Macroeconomic turmoil. International
competition. Technological revolution. Deregulation.
1980s: Decade of Entrepreneurship: Lean and mean. Takeovers. Anti-diversification. Small firm innovation. *Early internationalizing.
1990s: Information Age. No job security. Fewer benefits. Service firm growth. Creative financing.
2000s: Knowledge Economy. Rebirth of the
commercial. Internet. Renewed interest in biotech/biomed. Low transfer costs. Emergence of new media companies
What are the recent economic trends?
- Global economic turmoil
- Green power
- The women’s market
- The internet, social media, and mass mingling
What are incremental innovations?
Improvements that are made on existing technologies.
-Schumpeter did not see this as innovation even if they generated economic growth.
What is Knowledge economy?
Brought about by increased globalization and competitive shift towards more knowledge-based economic activity.
What is Mass mingling?
New trend in the consumer market which uses social media to make it easier to meet up with a lot of people for a common purpose.
What is a Nascent entrepreneur?
An individual who has intends to start an independent business.
What is a Nascent intrapreneur?
An individual who has intends to start entrepreneurial ventures inside a large corporation.
What are Platform technologies?
Technologies that serve as a fertile ground for startup ventures that license the technology and apply it in a number of different ways.
What is the fuzzy front end?
the period of time prior to firm birth where evaluation happens and activities undertaken at this point are often unclear and subject to change as more information is obtained.
The amount of investment an individual is willing to make in a new product/venture can be explained in what function?
[Inv = f(PS + VS + CF)].
The probability of its success, the value of that success, and the cost of failure
Which innovations can find no identifiable market in the earliest stages of development?
disruptive or radical innovations which obsolete previous technology or ways of doing things.
Name seven myths of entrepreneurship?
- 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
What are the Paths to Entrepreneurship?
- The home-based entrepreneur
- The serial or portfolio entrepreneur
- The nonprofit entrepreneur
- The corporate entrepreneur
What are the things needed for an entrepreneurial mindset to succeed inside a large corporation?
■Senior management commitment. ■A champion or several champions. ■Corporate interoperability (work environment) ■Clearly defined stages and metrics. ■A superior entrepreneurship team. ■Spirit of entrepreneurship.