Chapter 3 Flashcards
What is entrepreneurship all about
- Entrepreneurship is all about openness to new ideas, new opportunity, and new ways of acting on them
What is opportunity
A way of generating profit through unique, novel, or desirable, products or services that have not been previously exploited
for an idea to be viable it has to what?
Create opportunity
3 types of value
economic
social value
environmental value
innovation formula
invention x commercialization = innovation
what is innovation
turning products into marketable solutions
high useful ness high novelty
What is an invention
Is the product
invention turns into innovation
Low usefulness high novelty
What is Improvement
Improving upon an existing product
low novelty high usefulness
what is irrelevant
low usefulness low novelty
can you predict what category idea will fall in?
No may be irrelevant to someone and an improvement to someone else
How do you get good ideas?
get a lot of ideas and throw the bad ones out
Myth of an isolated inventor
one person alone does not create something but we think of it as a singular person
7 strategies for idea generation
- Analytical strategies
- search strategies
- imagination based strategies
- habit breaking strategies
- relationship seeking strategies
- development strategies
- interpersonal strategies
4 factors of favourable opportunities
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
4 pathway opportunity identifications
- find a pathway
- search a pathway
- effectuate pathway
- design a pathway
Find a pathway
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
search a pathway
When entrepreneurs are not sure what type of venture they want to start so they engage in an active search to discover new opportunities
Effectuate pathway
Pathway involves using what you have (skills, knowledge, abilities) to uncover opportunity
Creating rather than uncovering them
Design a pathway
Focuses on needs we do not know we have
Most complicates pathway
Ex: iPhone- created a new global market
what is alertness
the ability some people have to identify opportunities
why do Researchers think entrepreneurs are more like to find opportunities then non as
○ 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
how do you build upon opportunities?
○ 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
what makes an idea viable?
must be new or unique or at least a variation on an existing theme
Process that connects idea generation to opportunity recognition
- 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
