WEEK 1 (chapter 1) Flashcards by anna vandenappels

When we talk about entrepreneurship we talk about: “pursue opportunities without regard to the resources they currently control” what does this mean

I see a business opportunity. Even though I don’t have the money, team, or equipment yet, I’ll still go for it. I’ll figure it out as I go

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What is entrepreneurship

the process by which individuals pursue opportunities without regard to the resources they currently control, aiming to create and exploit future goods and services

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What does entrepreneurship involve in simple terms?

Turning ideas into viable businesses

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Is entrepreneurship only about starting new companies?

No, existing firms can also act entrepreneurially — this is called corporate entrepreneurship.

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What is corporate entrepreneurship?

Entrepreneurial behavior within an existing firm.

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What is entrepreneurial intensity?

A firm’s position on the SPECTRUM between being highly conservative and highly entrepreneurial.

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What are characteristics of highly entrepreneurial firms?

They are innovative, proactive, and willing to take calculated risks.

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What are characteristics of conservative firms?

They avoid risk and follow a more “wait and see” strategy

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Why is entrepreneurship important?

Because entrepreneurial firms challenge bureaucracy and actively seek to improve and innovate.

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Why do people become entrepreneurs? (3 reasons)

to BE THEIR OWN BOSS
to PURSUE THEIR OWN IDEAS
to ACHIEVE FINANCIAL REWARDS

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There are 4 core characteristics that successful entrepreneurs have
1. passion for business

often wat drives/motivates entrepreneurs through difficult times
deep belief in their idea/mission

Passion is important because
1. supports ability to LEARN AND IMPROVE
2. it drives long-term COMMITMENT and HARD WORK
3. it enables entrepreneurs to OVERCOME REJECTION and setbacks
4. it fuels PERSEVERANCE when the going gets tough

its not just about enthusiasm, it also ensures that the idea is aligned with the entrepreneurs skills and a real market opportunity.

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Perseverance

the ability to keep going despite difficulties, rejection, or failure. It’s about staying committed and motivated, even when things are hard or not working out as planned

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There are 4 core characteristics that successful entrepreneurs have
1. passion for business
2. product/customer focus

A successful entrepreneur focuses on solving real problems for real people

This means:
* Creating value for customers
* Understanding user needs
* Following through from idea to product launch

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There are 4 core characteristics that successful entrepreneurs have
1. passion for business
2. product/customer focus
3. Tenacity despite failure

Starting something new always involves uncertainty and setbacks

Entrepreneurs need to:
* Stay determined through challenges
* Persist despite failure
* Find ways to keep going when others might give up

tenacity also includes EMOTIONAL STRENGTH

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There are 4 core characteristics that successful entrepreneurs have
1. passion for business
2. product/customer focus
3. Tenacity despite failure
4. Execution Intelligence

This is the ability to turn an idea into a real, functioning business.

It includes practical skills like:
* Developing a business model
* Building a team
* Raising capital
* Managing operations and finances
* Leading and motivating others

Execution is often what separates good ideas from successful ventures.

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There are many misconceptions about what makes an entrepreneur, here are the most common myths
1. Entrepreneurs are born, not made

False. Skills and traits can be developed — entrepreneurship can be learned.

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There are many misconceptions about what makes an entrepreneur, here are the most common myths
1. Entrepreneurs are born, not made
2. Entrepreneurs are gamblers
3. Entrepreneurs are mainly money-driven

False. Money is not the primary motivator for most — passion and independence are.

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There are many misconceptions about what makes an entrepreneur, here are the most common myths
1. Entrepreneurs are born, not made
2. Entrepreneurs are gamblers

False. Most are moderate risk-takers who calculate and manage risk.

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False. Entrepreneurs of all ages succeed — experience and skills often matter more.

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Entrepreneurs love the spotlight False. Many prefer to work behind the scenes and avoid public attention.

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There are three main types of start-ups, based on their goals and growth potential

Salary-substitute firms

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small businesses that offer an income similar to what the owner would earn working for someone else
hair salons, convenience stores, small accounting firms etc
NOT INNOVATIVE and DONT AIM TO GROW QUICKLY

There are three main types of start-ups, based on their goals and growth potential

Salary-substitute firms
Lifestyle firms

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Started by individuals who want to pursue a PERSONAL INTEREST OR HOBBY while earning a living
tour guides, fitness coaches, b&b owners
they DONT SCALE, and are NOT GROWTH-DRIVEN

There are three main types of start-ups, based on their goals and growth potential

Salary-substitute firms
Lifestyle firms
entrepreneurial firms

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aim to bring innovative products or services to market
seek growth, scalability and competitive advantage
goal is to create value and capture market opportunities

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Over the past decade, the demographic landscape of entrepreneurship has shifted significantly

1. woman entrepreneurs - women owned businesses is rising 2. minority entrepreneurs - support organizations and initiatives play a key role in facilitating this growth (from other enthicities) 3. senior entrepreneurs: - more older adults due to corporate downsizing, desire for personal fulfillment and financial need 4. millennial entrepreneurs - many express interest in entrepreneurship but few actually pursue it.

What is creative destruction?

It's the process by which new products and technologies make existing ones obsolete, driving economic progress.

Who introduced the concept of creative destruction?

Joseph Schumpeter

What is the role of startups in creative destruction?

Startups often begin the process by offering improvements over existing products or services

Name four positive effects of creative destruction

It encourages innovation, increases competition, boosts productivity, and stimulates economic growth.

Why is creative destruction considered a positive effect of entrepreneurship?

Because it leads to economic progress by replacing outdated methods and products with better ones

What are two major ways entrepreneurial firms impact the economy?

Through innovation and job creation

What is innovation in the context of entrepreneurship?

Creating something new and useful that improves PRODUCTIVITY and COMPETITIVENESS

How do small innovative firms compare to larger ones in terms of patents per employee?

They are 16 times more productive, according to the U.S. SBA

Why do small businesses play a key role in job creation?

Because they use capital and resources effectively and create a large share of new jobs in the economy

How do entrepreneurial innovations improve quality of life?

By boosting productivity at work, improving health, and offering better entertainment and lifestyle tools

How do entrepreneurial firms impact larger companies?

Larger firms often adopt innovations or practices created by startups.

What are some concerns raised by entrepreneurial innovations?

Ethical and moral issues like data privacy and poor labor conditions.

How do entrepreneurial firms affect entire industries?

They improve industry efficiency and effectiveness through competition and innovation.

What are the four main stages of the entrepreneurial process?

1. Decision to become an entrepreneur 2. Developing a business idea 3. Starting the firm 4. Managing and growing the firm

What are the four main stages of the entrepreneurial process? 1. 1. Decision to become an entrepreneur What often triggers the decision to become an entrepreneur?

A personal event or motivation (called a triggering event)

What are the four main stages of the entrepreneurial process? 1. 1. Decision to become an entrepreneur 2. Developing a successful business idea What are key parts of developing a successful business idea?

1. Opportunity recognition 2. Feasibility analysis 3. Business model design 4. Industry analysis 5. Writing a business plan

What is a business model?

A plan for how a company creates, delivers, and captures value.

What is a business plan?

A formal document that summarizes the full business idea and plan.

What are the four main stages of the entrepreneurial process? 1.Decision to become an entrepreneur 2. Developing successful business ideas 3. Moving from an idea to an entrepreneurial firm

Setting up a legal/ethical foundation and choosing the right ownership structure.

What are the four main stages of the entrepreneurial process? 1.Decision to become an entrepreneur 2. Developing successful business ideas 3. Moving from an idea to an entrepreneurial firm 4. What happens in the final stage of the entrepreneurial process?

The entrepreneur manages and grows the business over time.

What are four key employability skills for entrepreneurs?

Business ethics and responsibility, critical thinking, collaboration, and data literacy

What does business ethics and social responsibility mean?

Acting ethically and considering how business actions affect society.

Why is critical thinking important for entrepreneurs?

It helps them analyze situations, spot opportunities, and decide if they’re worth pursuing

What does collaboration involve?

Working well with others — like partners, teams, and stakeholders — to reach goals

What is data literacy?

The ability to understand and use data to make informed business decisions.

WEEK 1 (chapter 1) Flashcards

(50 cards)