chapter 5 Flashcards
define entrepreneurship and the role of managers as entrepreneurs
- entrepreneurs have changed whole industries, economies, and societies by transforming the way we live, communicate, and interact with each other
- many entrepreneurs begin their entrepreneurial journey by creating start-ups, many of which are responsible for disruptive innovations or innovations that create new markets through the discovery of new categories of customers
- managers can learn some powerful lessons from entrepreneurs and enhance the value of all types of organizations by creating opportunities, generating ideas, and devising strategies toward positive change
type of entrepreneurial managers
there are five types in practice today:
- corporate entrepreneurship (or intrapreneurship)
- entrepreneurs inside
- social entrepreneurship
- family enterprise
- serial entrepreneurs
corporate entrepreneurship (intrapreneurship)
the process of creating new products, ventures, processes, or renewal within large corporations
entrepreneurs inside
people who think and act entrepreneurially within different types of organizations
social entrepreneurship
the process of sourcing innovative solutions to social and environmental problems
family enterprise
a business owned and managed by multiple family members typically for more than one generation
serial entrepreneurs
also know as habitual entrepreneurs, are people who start several businesses, whether simultaneously or one after another
the eight components of the entrepreneurship method
- identify the desired impact on the world
- start with the means at hand
- describe the idea today
- calculate affordable loss
- take small action
- network and enroll others in the journey
- build on what has been learned
- reflect and be honest
describe the many growth accelerants and challenges that affect the performance of new ventures:
- market opportunity/customers/competitors
- human capital/workforce
- product/services/after-sales
- marketing/branding
- research and development/new product development
- company financing
- operating management/systems
- top management/board
- market size
- market value creation and customer adoption
- the entrepreneurial team
- feasibility of the product or service
- finance and revenue
- legal and regulatory issues
explain the ways in which entrepreneurs can learn from failure
- entrepreneurs tend to experience big failures and small failures
- big failures are the type that end in bankruptcy or even severe legal implications
- failure can not only be financially costly but also emotionally traumatic, often resulting in feelings of grief, loss, guilt, humiliation, self-blame, anger, and shame
- there are several coping strategies to deal with fear of failure at work
coping strategies to deal with fear of failure at work:
- reframe failure
- set goals with positive outcomes
- create a “fear list
- focus on learning
- grit is also related to resilience, not just in the face of failure but in perseverance to stick to long-term commitments and goals
