6.1

Question 1

Forms of Capital

1-5

Answer 1

1 Human
2 Social
3 Natural
4 Physical
5 Financial

Question 2

1 Human Capital

normal vs. entrepreneurial

Answer 2

• capabilities & knowledge
• personality

normal:
- investment education: educational level, in-company training)
- investment experience (work experience, internships)

entrepreneurial:
- education: management studies, entrepreneurial training, learning by doing
- experience: self-employment, search for experienced team, exchange and cooperation

Question 3

Definition Social Capital

Answer 3

Social Capital is the contribution to an organizations success that can be attributed to personal relationship and networks, both within the organization and outside of it.

Question 4

Social capital

1-3

Answer 4

Social capital further measures group effectiveness itself
- bonds (family, close friends, culture)
- bridges (distant friends, colleagues, associates)
- linkages (people/groups up or down the social ladder)

Question 5

Effect of high Social Capital in Start-ups

1-3

Answer 5

• people with higher social capital found more companies (intention & behavior)
• people with higher social capital found companies faster (venture creation progress)
• companies founded by people with higher social capital perform better (venture performance)

Question 6

Factors that improve social capital of company

1-7

Answer 6

1 networks
2 trust
3 reciprocity
4 participation
5 values / norms
6 diversity
7 sense of belonging

Question 7

Self-assessment of social capital

1-3

Answer 7

• Do i have the necessary know-how about industry, market and technology?
• Do i have the knowledge to accomplish those critical tasks?
• is my required business network big enough?

Question 8

Failure of Startup

Answer 8

• 9 out of 10 ventures fail
  30-40% liquidation of all assets
  70-80%: failing to see the projected return on investment
  90-95%: failing to meet the projection

Question 9

reasons why startups fail

Answer 9

1 No market need: 42%
2 ran out of cash: 29%
3 not the right team: 23%
4 get outcompeted: 19%
5 pricing/cost issues: 18%
6 user unfriendly product: 17%

Question 10

Shakeholders

1: 1-3

2: 1-7

Answer 10

intern:
1 founder
2 employees
3 management

extern:
1 shareholders
2 creditors
3 customers
4 government
5 suppliers
6 society
7 competition

Question 11

Leadership

leadership is: 1-4

Answer 11

1 influence employees to achieve organizational goals
2 influence others to put action into goals/targets
3 create support/confidence to achieve goals
4 a power of influencing others

Question 12

Leadership according to Taylor

Answer 12

„Workers dont usually enjoy work. Because of this, they need to be monitored and controlled closely.“ F.W. Taylor, Scientific Management
- science, not rule of thumbs
- scientifically train employees
- pay based on results
- ensure that most efficient ways of working are used
- divide work between mangers and workers

Question 13

Manager vs. Leader

1-5

Answer 13

M vs. L

1 do the thing right vs. do the right thing
2 have employees vs. create fans
3 direct vs. coach
4 build processes vs. build relationships
5 rely on existing skills vs. grow personality

Question 14

Entrepreneurial Leadership

Answer 14

1 Scenario enactment
- envisaging and creating a scenario of possible opportunities
- can be seized to revolutionize current set
- given resource constraints

2 Cast enactment
- convincing both potential followers and network of stakeholders
- transformation is possible by assembling resources

Question 15

What great leaders have in common

1-5

Answer 15

1 performance oriented
2 visionary
3 convincing, inspirational, encouraging
4 improvement oriented
5 decisive

Question 16

Factors adding Entrepreneurial Spirit

1-5

Answer 16

1 Autonomy
2 competitive aggressiveness
3 innovativeness
4 proactiveness
5 risk-taking

Question 17

Factors adding Entrepreneurial Spirit

1 Autonomy

Answer 17

• independent action taken
• bringing new venture to seeing it to fruition

Question 18

Factors adding Entrepreneurial Spirit

2 Competitive aggressiveness

Answer 18

• efforts to outperform rivals
• strong offensive posture/aggressive responses to actions of competitors

Question 19

Factors adding Entrepreneurial Spirit

3 Innovativeness

Answer 19

• creativity and experimentation to introduce new products/services/processes

Question 20

Factors adding Entrepreneurial Spirit

4 Proactiveness

Answer 20

• opportunity-seeking
• forward-looking
• introduction of new products/services to get ahead
• anticipate future demand

Question 21

Entrepreneurial principles

1-5

Answer 21

1 focus on control (environment shapable)
2 means-oriented (preferences, knowledge, networks)
3 affordable loss (restriction on downside potential)
4 partnerships (partners share means)
5 leveraging contingencies (incorporation of external info)

Question 22

Entrepreneurial Leadership based on effectuation

Answer 22

• Entrepreneurs reluctant to set specific goals
• control evolving processes without prediction
• employees co-create the firm
• employee competencies leveraged as means for firm
• absorb the paralyzing effects of uncertainty by applying principle of affordable loss
• create environment of validated learning (allow failure/learning; make sure learning is captured)

Question 23

Entrepreneurial success factors

1-10

Answer 23

1 Be passionate
2 Maintain focus
3 Work hard and focus on things you can control
4 Be willing ti take action and make decisions - fast!
5 Enjoy the journey. And do no plan with the exit scenario
6 Be flexible but persistent. Build resilience
7 Know your own core skills and strengths. And trust the team
8 Focus on execution
9 Connections. And maybe luck
10 Entrepreneurial knowledge