Chapter 18 Flashcards
(36 cards)
What is entrepreneurship?
Risk taking behavior that results in new opportunities
What is classic entrepreneur?
pursues opportunities other view as problems
What is a serial entrepreneur?
starts and runs business and nonprofits over and over again
What is first mover advantage ?
first to exploit a a niche or enter a market
What is a mompreneurs?
pursues business opportunities they spot as mothers
What is a social entrepreneur?
unique form of ethical entrepreneurship that seeks new ways to solve pressing social problems
What is a social entrepreneur?
take risks to find new find ways to solve pressing social problems such as poverty, literacy, illness, homelessness
Entrepreneurship is a way of what?
thinking
What is necessity based entrepreneurship?
people start a business because no other employment opportunities exist
What are personality traits of entreprenuers?
passion and action orientation, self-confidence, high need for achievement, independence
common myths about entreprenuers?
born not made gamblers money is key to success must be young degree in business
Why is retailing, services, and manufacturing attractive to entrepreneurs?
easy to enter, low initial financing, specific group of consumers, less heavy competition
small businesses succeed because of
vison, hard work, market opportunities, decision making, flexibility
What are small business types?
franchise, business model, startup, lean startup, family owned small businesses
What is a franchise?
one business owner sells to another the right to operate the same business in another location
What is a business model?
plan for making a profit by generating revenues that are grater then costs
What is a startup?
new and temporary venture that is trying to establish a profitable business model
what is a lean startup?
use open source software and free web services to contain costs while staying small and keeping operations simple
What are the 3 steps of the small business life cycle?
birth stage, maturity stage, and breakthrough stage
What is the birth stage ?
establishing firm, getting customers, fighting for existence and survival
what is the maturity stage?
refining the strategy, continuing growth, investing wisely and staying flexible
what is the breakthrough stage?
working on finances, becoming profitable, coping with growth and take off
What do you need to do to start a business?
have an idea, devise a plan, form an ownership, financial resources, decide if you will do an existing, start a new business, or buy a franchise
What are small business failures?
lack of experience and commitment, poor financial controls and leadership
