B&E Flashcards
What is the key teams in a new Venture team?
- Management team
- Board of Directors
- Lenders and Inventors
- Other Professionals
- Board of Advisors
- Key Employees
- Founders
The most common reason for choosing to become an entrepreneur is according the course?
To be my own boss
What is the GEM?
Global Entrepreneurship Monitor
* Tracks entrepreneurship in 112 countries
What is the TEA
Total Early stage Entrepreneurial
* Tracks the early stages of businesses
In which order would you ideally handle the development of proposed business venture?
Idea => Opportunity => Feasability analysis
Sole proprietorships/partnership?
- Minimum one owner
- Sharing ownership through stocks not possible
- Doesn’t require any minimum capital
Public Corporation
- Minimum capital = 500 000 SEK
- Large companies
- Firm and owners are separated legal entities
- Double taxation
Private Corporation
- Minimum capital = 25 000 SEK
- SME
- Firm and owners are separated legal entities
- Double taxation
What does incubation mean in an entrepreneurial context?
The stage of the creative process during which an entrepreneur considers the idea or thinks about a problem
What does preparation mean in a context about entrepreneurial creativity?
Bringing the background, experience and knowledge to recognize an opportunity
What is Intrapreneurship?
When units of a larger corporation encourages, allows and applies entrepreneurial conditions for the employees
What is a business model?
A firm’s business model is its plan or recipe for how it creates, delivers, and captures value for its stakeholders.
What is disruptive business model?
An idea that are impactful enough that they disrupt or change the way business is conducted in an industry or an important niche within an industry
What is B2B?
Business-to-business, commerace between two businesses
What is B2C?
Business-to-consumer, commerace between business to consumer
What is the five force model?
A framework used to analyze the competitive environment of an industry
Developed by Michael Porter
- Rivalry among existing firms
- Threats of new entrants
- Bargaining power of buyers
- Bargaining power of suppliers
- Threats of substitutes
Threat of New Entrants
The degree to which new competitors can easily enter the industry and compete with existing players
Bargaining Power of Suppliers
The degree to which suppliers can influence the industry by controlling the supply of key inputs such as raw materials, components, or labor
Bargaining Power of Buyers
The degree to which buyers can influence the industry by demanding lower prices, higher quality, or better service.
Threat of Substitute Products or Services
The degree to which alternative products or services can replace those offered by the industry, and the ease with which customers can switch to these alternatives.
Intensity of Competitive Rivalry
The degree to which existing competitors in the industry compete with each other for market share and profitability.
Competencies of a founder for a start-up
- Firm started by a team
- Higher Education
- Prior entrepreneurial experience
- Relevant industry experience
- Broad social and professional network
The five forces model is primarily used for?
Understanding an industry’s structure and to determine industry profitability
What is the four forms of intellectual property?
Patent, Trademark, Copyright, Traded secret
Which are the main reasons for needing financing of a start-up?
Cash flow, Investments, Development
Which are the major advantages for becoming a franchisor?
Low cost, Income growth, Access to ideas
What is meant by a unicorn in the venture capital world?
A venture capital tech company valued at a billion US dollars or more
Which are according the course the four most common day-to day challenges of a growing firm?
Cash flow management, Price stability, Capital constraints, Quality control
What is Economy of scope?
Is the cost saving that result from producing multiple products or services together
What is Economy of Scale?
Is the cost savings that result from producing goods or services in large quantities
What is acquisition?
The process of one company acquiring another company by purchasing a controlling interest in the company being acquired.
What is a Joint Venture?
Is a business arrangement between two or more companies that combines their resources, expertise, and capabilities to undertake a specific project or business activity
What is a merger?
Is a business combination in which two or more companies join together to form a single, larger company.
What is a strategic alliance?
Is a collaborative relationship between two or more companies that work together to achieve mutually beneficial goals
What is Perfect competition?
Perfect competition is a theoretical market structure in which no single buyer or seller has control over the market price.
What is GATT?
General Agreement on Tariffs and Trade
Which was an international treaty signed in 1947 with the goal of promoting free trade and reducing trade barriers between participating countries.
Regulates cross-border trade in goods through reduced customs duties, trade quotas and other
trade barriers
What is the Agenda 2030?
Also known as the Sustainable Development Goals (SDGs), is a global plan of action adopted by the United Nations in 2015.
It aims to end poverty, protect the planet and ensure prosperity for all people by 2030
What is the The Gender Social Norm Index?
A measure to assess how social beliefs, attitudes, and expectations around gender roles affect gender equality outcomes.
What is the The Human Development Index?
Is a measure of human development, which is used to rank countries based on their achievements in three key areas: education, health, and income.
GSNI three dimensions?
Economic activity and empowerment
Educational attainment
Health and survival
What is The Global Peace Index?
Is an annual report published by the Institute for Economics and Peace that ranks countries according to their level of peacefulness.
What is a SSF?
Salary-subsitute firm
A firm is in practice much like a conventional employment
What is a EF?
Entrepreneurial firm
A business that is founded and operated by one or more entrepreneurs who seek to introduce new products or services, or improve upon existing ones, in order to meet the needs of their target market.
Which four parts was the course material and course book divided into?
Entrepreneur >
Busines idea and business plan >
Start a company >
Mange and grow
What is an opportunity window?
Is a period of time during which a particular opportunity exists for a business or individual to take advantage of.
What is an opportunity?
A favorable set of circumstances that creates need for a new type of product and business
Three ways to identify opportunites?
1) Observing trends
2) Solving problems
3) Finding gaps in the market place
What is an example of a disruptive business model?
Low-end market business model and new market disruption
What parameter was not included in the Business Model CANVAS template?
Competitors
What is an industry?
A group of companies or organizations that produce similar products or smilar services
Rivalry among existing firms
Companies take extreme actions to hinder new entrants to establish itself on the market
What does the management team do?
Is a group of employees responsible for the daily operation of a company
What important for a new venture team?
Forming a suitable blance of competencies among the mangement team and key employees
What does “burn rate” mean?
It is the rate at which it needs to spend capital until it becomes profitable
What is a patent?
A grant from one or more federal goveerments giving the right exclude others to use an invention
What are the advantages to be a franchisor?
Low cost and increased buying power
How long is utility patent granted for?
20 years
What is the three major challanges with a fast growing company?
1) To much stock/Not enough sales
2) Not enough delivery capacity
3) Cash flow / can’t pay the bills
What is the critical volume?
The volume that is needed to make the company break even
What is the driving force behind international trade?
Differences in imput factors
What’s good about exporting?
Requires relatively low investments and involves a realtively small risk for companies
What is red tape barriers?
A type of protective trade policy
What characterizes an opportunity?
Is attractive, timely, durable and on the supply of a product, service or business that adds value for user or buyer
What is indirect competition?
When companies offer different solutions to satisfy the same customer need
Is sole or multiple founder more successful?
Unknown, experts disagree upon this.
What is a typical external growth strategy?
Mergers and aquisitions, licensing, strategic alliances and franchising
What is a legal requirement in shareholders’ company?
A board of directors
Abbreviations of three different authorites for patent registrations
EPO, USPTO, PRV
How do you achieve Economy of Scope?
Adding more product variation
How do you achieve Economy of Scale?
Producing more of the same product
Which organizations are related to GATT?
IMF AND IBRD
What is TRIPS?
A multilateral agreement on intellectual property, which provides protection for patents, copyrights and trademarks
What is The Living Planet Index?
A measure of the state of global biodiversity
