Chapter 1 & 2 Flashcards
Entrepreneurship
- 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
4 mindsets of Entrepreneurship
◦Opportunity-focused
◦Risk taking
◦Innovative
◦Growth-oriented
Describe the 3 phases of the ENT process:
1) Find a problem in the market
2) Validate the assumption about the costumer and the problem
3) Design business and execute plan
Give some examples of external variables effecting entrepreneurship:
Economic environment competition new laws and regulations labor supply sources of capital
What are the three primary characteristics of a startup?
- Innovative
- Value-creating
- Growth-oriented
How does the level of risk change for a business?
Time and validation from the market over time lowers risk
What is the PUSH mechanism in ENT?
the mechanism that drives someone to become a nascent entrepreneur because all other opportunities for income appear tor be absent or unsatisfactory
What is the PULL mechanism in ENT?
the mechanism that attracts an individual to an opportunity and creates a “burning desire” to launch a business and capture a market
When do Entrepreneurs usually drop out of the business making process?
When they shift from intention to actual preparation and execution
What are three reasons that startups fail?
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
What is the characteristic of firms most likely to survive?
they display superior levels of reliability & accountability in performance, processes and structure
What is the vital thing entrepreneurs must do to survive?
minimize the cost of possible failure to recover quickly.
What are the top four entrepreneurial trends?
Digital Anonymity
Return to Domestic Manufacturing & Craft
Big Data
The Lean Startup Movement
What are the six risks of entrepreneurship?
- It takes a lot of money to start a business.
- It takes a great idea.
- The bigger the risk, the bigger the reward.
- A business plan is required for success.
- Entrepreneurship is for the young and
reckless. - Entrepreneurship cannot be taught
What is home-based entrepreneurship model (solopreneurship)?
businesses that people run alone– Usually described as hobby businesses
What is a portfolio entrepreneur?
Someone who has multiple businesses
What is a serial ent?
A person who likes the thrill of starting companies so has started and sold many
Do non-profits make a profit?
YES, they just have to reinvest that money
What is Intrapreneurship?
A corporate enterprise that holds a competitive market position
What is the opportunistic model?
wait for a leader or project to emerge
Enabler Model
Sprinkles resources throughout the org to encourage innovation at all levels. EX: Google (part of the culture)
Advocate Model
assign ownership to an individual or department (generates new sources of growth for the company)
Producer Model
Establishing formal organizations with dedicated funds and significant autonomy. (SKUNKWORKS)
Opportunistic Model
Waiting for projects champions to emerge and then coping those ideas
What class are ENT’s most likely to come from?
poor or middle class
What type of person is it important to have to succeed?
A mentor that has led the kind of life you would like to lead
Networking
The exchange of information and resources among individuals, groups, or organizations whose common goals are to mutually benefit and create value for the members
What are some common barriers to self employment?
◦Lack of confidence ◦Financial needs ◦Startup logistics ◦Personal or family issues ◦Time constraints ◦Lack of skills
What are a few skills entrepreneurs need?
the ability to analyze a situation, ◦extract the important ◦ignore the superfluous ◦compare potential outcomes ◦extrapolate from other experiences to the
current one
