Unit 8- Entrepreneurship

Question 1

What are the 3 stages of entrepreneurship?

Answer 1

identifying an opportunity,evaluating that opportunity evaluation,and exploiting that opportunity in the marketplace.

Question 2

What is entrepreneurship?

Answer 2

Entrepreneurship is a process by which individuals either on their own or inside the organisations pursue opportunities without regard to the resources they currently control

Question 3

What is the entrepreneurial culture?

Answer 3

a people & empowerment focus, commitment & personal responsibility, employees doing the ‘right thing’, value creation through innovation & change, freedom to grow & fail,

Question 4

What are the 3 key drivers for entrepreneurship?

Answer 4

independence, financial & pursuit of a new idea

Question 5

Why is entrepreneurship so relevant?

Answer 5

Entrepreneurship is essential to create value for customers & organisations - and for the economy as a whole

Question 6

What is innovation driven by?

Answer 6

Innovation is not something that happens automatically. It is driven by entrepreneurship. Innovation is a tool that entrepreneurs use to exploit change as an opportunity for a different product, process or service.

Question 7

Why do entrepreneurs try to bring something new into the world?

Answer 7

Entrepreneurs try to bring something new into the world (service, product & process innovations) to achieve strategic advantage

Question 8

Who is entrepreneurship relevant to?

Answer 8

starting up, advisory & employees

Question 9

What is the process of entrepreneurship?

Answer 9

discovery, opportunity evaluation & exploitation

Question 10

What is opportunity creation?

Answer 10

new creation of market when demand or supply does not exist, ideas evolve & are shaped

Question 11

What is opportunity recognition?

Answer 11

If supply & demand already exist then you must bring them together

Question 12

What is opportunity discovery?

Answer 12

if demand exists & supply does not, then you must create supply & vice versa

Question 13

What are the IDEO 3 lenses?

Answer 13

IDEO 3 lenses: desirability (does anyone want it & who are they?), feasibility (is it going to work?) & viability (what value will it have in the market?)

Question 14

What is the revenue model?

Answer 14

how the business will deliver value to the customers at an appropriate cost in order to be profitable

Question 15

What is entrepreneurial orientation?

Answer 15

innovativeness, risk taking & proactiveness

Question 16

What are Shapiro’s 4 conditions to become an entrepreneur?

Answer 16

1. an individual must have a participating event (a displacement), 2. the individual must have the propensity to to act on displacement (disposition to act), 3. they must see the idea of starting a business as feasible & 4. they must be able to access the resources they need to start a business (they all all necessary)

Question 17

What is formal, social & active learning?

Answer 17

Formal learning: learning from experts, Social learning: learning from others & Active learning: learning by doing

Question 18

What is intrapreneurship?

Answer 18

Intrapreneurship can happen in large companies, social enterprises & public sectors

Question 19

What are the start-up options?

Answer 19

own idea (alone or in a team which means they own intellectual property, freelancer) or external ideas (e.g. franchising or licensing which means benefitting from someone else’s intellectual property, can reduce risk & support market entry, but limits you as you don’t own intellectual property)

Question 20

What is the traditional approach to start-ups?

Answer 20

business plan with a summary of the operational & financial objectives of the business, information about how objectives will be realised & includes market, product, team, finances & more

Question 21

What is the new approach of start-ups?

Answer 21

The Lean Start-up which applies scientific approach

Question 22

Who is an intrapreneur?

Answer 22

Intrapreneur is an employee who is given freedom and financial support to create new products, services & systems, who do not have to follow company’s usual routines or protocol’s. Generally same as entrepreneur but in larger cooperations.

Question 23

What is corporate entrepreneurship?

Answer 23

Corporate entrepreneurship (CE) is about encouraging opportunity-seeking & innovation in a systematic manner throughout the organisation, seeking ways to improve & create competitive advantage

Question 24

Who are social entrepreneurs?

Answer 24

Social Entrepreneurs (SE) are entrepreneurs with a social mission. (they play the change agent in social sector)

Question 25

What is the underlying drive for social entrepreneurs?

Answer 25

Underlying driver of SE is to create social value rather than to create personal or stakeholder wealth e.g. for profit, non-profit, co-operative, hybrid organisations

Question 26

What are the 4 liabilities of newness (challenge for start-ups)?

Answer 26

1. lack of skills, routines & systems, & experiences required to operate, 2. lack of history, 3. lack of social capital & 4. lack of financial capital

Question 27

What are the implications for the 4 liabilities of newness?

Answer 27

costs, mistakes, inefficiencies, difficult to access resources & trust issues

Question 28

How can start-ups overcome these challenges?

Answer 28

newness can be an asset: clean slate, responsive, flexibility & naivety (be enthusiastic, learn new information, take risks and give it a go)

Question 29

What are disadvantages of large firms?

Answer 29

excess of bureaucracy, power of accountants, managers being 'administrators', cumbersome internal communications (slow reaction to external change) & power of investors in public companies

Question 30

How do large firms vs small firms compare?

Answer 30

large firms have material advantages (financial & technical resources), small firms have behavioural advantages (entrepreneur, flexibility, responsiveness, greater enthusiasm of staff, lack of bureaucracy). Large firms need a big opportunity capable of generating multi-dollar return whereas smaller firms can pursue much smaller opportunities

Question 31

What are the factors influencing probability of failure?

Answer 31

firm's age (the longer a firm survives, the less likely it is to fail), size (failure is more likely in small firms), growth history (start-ups that grow in a shorter amount of time less likely to fail) & sector (variation)

Question 32

What are the personal costs of failure?

Answer 32

financial loss, emotional costs, psychological costs, social costs, loss of self-esteem & entrepreneurial costs (less likely to begin another start-up)