Chapter 1 & 2

Question 1

Entrepreneurship

Answer 1

• the pursuit of opportunity beyond resources controlled
• The process by which individuals—either on their own or in organizations—pursue opportunities without regard to the resources they currently control

Question 2

4 mindsets of Entrepreneurship

Answer 2

◦Opportunity-focused
◦Risk taking
◦Innovative
◦Growth-oriented

Question 3

Describe the 3 phases of the ENT process:

Answer 3

1) Find a problem in the market
2) Validate the assumption about the costumer and the problem
3) Design business and execute plan

Question 4

Give some examples of external variables effecting entrepreneurship:

Answer 4

Economic environment
competition
new laws and regulations
labor supply
sources of capital

Question 5

What are the three primary characteristics of a startup?

Answer 5

1. Innovative
2. Value-creating
3. Growth-oriented

Question 6

How does the level of risk change for a business?

Answer 6

Time and validation from the market over time lowers risk

Question 7

What is the PUSH mechanism in ENT?

Answer 7

the mechanism that drives someone to become a nascent entrepreneur because all other opportunities for income appear tor be absent or unsatisfactory

Question 8

What is the PULL mechanism in ENT?

Answer 8

the mechanism that attracts an individual to an opportunity and creates a “burning desire” to launch a business and capture a market

Question 9

When do Entrepreneurs usually drop out of the business making process?

Answer 9

When they shift from intention to actual preparation and execution

Question 10

What are three reasons that startups fail?

Answer 10

1) People come up with solutions for problems that don’t really exist in the market
2) The solution already exists on the market
3) The business model is not tested

Question 11

What is the characteristic of firms most likely to survive?

Answer 11

they display superior levels of reliability & accountability in performance, processes and structure

Question 12

What is the vital thing entrepreneurs must do to survive?

Answer 12

minimize the cost of possible failure to recover quickly.

Question 13

What are the top four entrepreneurial trends?

Answer 13

Digital Anonymity
Return to Domestic Manufacturing & Craft
Big Data
The Lean Startup Movement

Question 14

What are the six risks of entrepreneurship?

Answer 14

1. It takes a lot of money to start a business.
2. It takes a great idea.
3. The bigger the risk, the bigger the reward.
4. A business plan is required for success.
5. Entrepreneurship is for the young and
   reckless.
6. Entrepreneurship cannot be taught

Question 15

What is home-based entrepreneurship model (solopreneurship)?

Answer 15

businesses that people run alone– Usually described as hobby businesses

Question 16

What is a portfolio entrepreneur?

Answer 16

Someone who has multiple businesses

Question 17

What is a serial ent?

Answer 17

A person who likes the thrill of starting companies so has started and sold many

Question 18

Do non-profits make a profit?

Answer 18

YES, they just have to reinvest that money

Question 19

What is Intrapreneurship?

Answer 19

A corporate enterprise that holds a competitive market position

Question 20

What is the opportunistic model?

Answer 20

wait for a leader or project to emerge

Question 21

Enabler Model

Answer 21

Sprinkles resources throughout the org to encourage innovation at all levels. EX: Google (part of the culture)

Question 22

Advocate Model

Answer 22

assign ownership to an individual or department (generates new sources of growth for the company)

Question 23

Producer Model

Answer 23

Establishing formal organizations with dedicated funds and significant autonomy. (SKUNKWORKS)

Question 24

Opportunistic Model

Answer 24

Waiting for projects champions to emerge and then coping those ideas

Question 25

What class are ENT’s most likely to come from?

Answer 25

poor or middle class

Question 26

What type of person is it important to have to succeed?

Answer 26

A mentor that has led the kind of life you would like to lead

Question 27

Networking

Answer 27

The exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members

Question 28

What are some common barriers to self employment?

Answer 28

◦Lack of confidence ◦Financial needs ◦Startup logistics ◦Personal or family issues ◦Time constraints ◦Lack of skills

Question 29

What are a few skills entrepreneurs need?

Answer 29

the ability to analyze a situation, ◦extract the important ◦ignore the superfluous ◦compare potential outcomes ◦extrapolate from other experiences to the
current one