Chapter 1 Flashcards
Entrepreneurial opportunities
New goods/services/raw materials can be introduced and sold at greater cost than to produce
Small business characteristics
Employs fewer than 50/100 people, CRA limit $300k operating profit for small business deduction qualification, degree to which owner is also the day-to-day manager
Structural thinking
Creative mental leap that come from existing knowledge, superficial similarities: basic technology elements match basic market elements
Bricolage
Combination of resources at hand to new problems and opportunities, use in a way for which they weren’t originally designed
Effectuation
See what’s available and select among possible outcomes
Causation
Starts with desired outcome and focuses on means to generate that outcome
Differences between effectuation + causation
Experimentation, affordable loss, flexibility, pre-commitments
Bootstrapping
Addresses resource scarcity, 4 categories: customer related, joint resource utilization, self-financing, temporary resources
Cognitive adaptability
Controlling one’s thinking (ex. emotions in a crisis), 4 steps: comprehension, connection, strategy, reflection
Characteristics of entrepreneurship
Need for achievement, need for power, need for affiliation
Entrepreneur desirable attitudes
Opportunity obsession, risk tolerance, creativity/ adaptability, motivation to excel, commitment, courage, leadership