Chapter 1: Practicing Entrepreneurship Flashcards
What is the definition of entrepreneurship?
Entrepreneurship is a way of thinking, acting, and being that involves finding or creating new opportunities and taking action on them.
They are action-oriented and often change the world through their ideas.
What are the 6 key features of modern entrepreneurs?
- Entrepreneurship as a method
- Entrepreneurs think differently
- Action over planning
- Profit is not the only sole driver
- Collaboration over competition
- Entrepreneurship as a life skill
Entrepreneurship as a method
Entrepreneurs practice entrepreneurship by learning from experiences, embracing uncertainty, and taking action even without complete information. Trial-and-error.
Entrepreneurs think differently
According to Effectuation Theory, entrepreneurs start with the resources they have and act to reduce uncertainty and learn from the market.
They use small actions to collect feedback and guide further decisions.
Action over planning
Modern entrepreneurs emphasize real data and live experimentation over traditional business planning.
Testing ideas and learning from real-world feedback is prioritized over creating extensive business plans.
Profit is not the only sole driver
Many successful entrepreneurs are motivated by both societal impact and wealth.
Entrepreneurship as a life skill
Entrepreneurial skills (adaptability, problem-solving, resilience) are widely applicable in other fields, not just startups.
Collaboration over competition
Building networks and collaborating with others is critical.
The company likely benefited from external partnerships, market insights, and knowledge sharing.
What are the 7 components of the entrepreneurship model?
- Come up with the why statement
- Start with means at hand
- Describe idea today
- Identify (or next) actions
- Enroll stakeholders
- Calculate affordable loss
- Act, learn, build
