Chapter 3

Question 1

What is entrepreneurship all about

Answer 1

• Entrepreneurship is all about openness to new ideas, new opportunity, and new ways of acting on them

Question 2

What is opportunity

Answer 2

A way of generating profit through unique, novel, or desirable, products or services that have not been previously exploited

Question 3

for an idea to be viable it has to what?

Answer 3

Create opportunity

Question 4

3 types of value

Answer 4

economic
social value
environmental value

Question 5

innovation formula

Answer 5

invention x commercialization = innovation

Question 6

what is innovation

Answer 6

turning products into marketable solutions
high useful ness high novelty

Question 7

What is an invention

Answer 7

Is the product
invention turns into innovation
Low usefulness high novelty

Question 8

What is Improvement

Answer 8

Improving upon an existing product
low novelty high usefulness

Question 9

what is irrelevant

Answer 9

low usefulness low novelty

Question 10

can you predict what category idea will fall in?

Answer 10

No may be irrelevant to someone and an improvement to someone else

Question 11

How do you get good ideas?

Answer 11

get a lot of ideas and throw the bad ones out

Question 12

Myth of an isolated inventor

Answer 12

one person alone does not create something but we think of it as a singular person

Question 13

7 strategies for idea generation

Answer 13

1. Analytical strategies
2. search strategies
3. imagination based strategies
4. habit breaking strategies
5. relationship seeking strategies
6. development strategies
7. interpersonal strategies

Question 14

4 factors of favourable opportunities

Answer 14

Valuable
- Is a market for customers

Rare
- Offer some novelty that does not exist for customer

Costly to imitate
- Are barriers to entry for other entrepreneurs

Fit capabilities of entrepreneurs
- Skill used to identify opportunity

Question 15

4 pathway opportunity identifications

Answer 15

1. find a pathway
2. search a pathway
3. effectuate pathway
4. design a pathway

Question 16

Find a pathway

Answer 16

Path way that assumes that opportunities exist independent of entrepreneurs and are waiting to be found
Opportunity is found when a clear problem is seen

Question 17

search a pathway

Answer 17

When entrepreneurs are not sure what type of venture they want to start so they engage in an active search to discover new opportunities

Question 18

Effectuate pathway

Answer 18

Pathway involves using what you have (skills, knowledge, abilities) to uncover opportunity
Creating rather than uncovering them

Question 19

Design a pathway

Answer 19

Focuses on needs we do not know we have
Most complicates pathway
Ex: iPhone- created a new global market

Question 20

what is alertness

Answer 20

the ability some people have to identify opportunities

Question 21

why do Researchers think entrepreneurs are more like to find opportunities then non as

Answer 21

○ They have access to more information
○ They may be more prone to pursuing risk than avoiding them
They may possess different cognitive styles from those of non-entrepreneurs

Question 22

how do you build upon opportunities?

Answer 22

○ Prior knowledge
§ :information gained from a combination of life and work experience
§ Entrepreneurs with knowledge of market and a broad network are more likely to recognize opportunities than those who have fewer contacts
○ And pattern recognition
§ Process of identifying links or connections between unrelated things or events
§ Is a process of “connecting the dots”
§ Class exercise with 9 dots

Question 23

what makes an idea viable?

Answer 23

must be new or unique or at least a variation on an existing theme

Question 24

Process that connects idea generation to opportunity recognition

Answer 24

1. Idea generation
   i. Production of idea for something new
   2. Creativity
   i. Production of ideas for something new that is also potentially useful
   3. Opportunity recognition
   i. Recognition that ideas are not only new and potentially useful but also have the potential to generate economic value

Question 25

what is the difference between a person that comes up with an idea and an entrepreneur

Answer 25

idea to opportunity

Question 26

IDEATE

Answer 26

Method to identify and select high potential ideas that can be converted to opportunities
§ Identify
§ Discover
§ Enhance
§ Anticipate
§ Target
Evaluate