Class 2 Flashcards
Starting your own business:
Form your own company and build a team to support your vision. Pros: you are your own boss, more control over decisions, make more money potentially than if you were an employee. Cons: will work more hours than you would at another job, more financial risk, competitors may have more experience.
Franchising:
License purchased by a franchisee from an existing business called a franchisor to allow them to trade under the name of that business. Pros: purchasing an established business model, immediately gain benefit of the franchisors brand power, may have access to additional resources. Cons: limits decision making, expensive to buy-in, pay royalties to the franchisor.
Buying a small business:
Entrepreneur purchases majority ownership in existing company to run it as their own. Pros: purchasing an established business model, immediately gain book of customers, may have access to additional resources. Cons: there is likely a reason the previous owner chose to sell, can be expensive to buy-in, inherit the firms liabilities.
Corporate entrepreneurship/intrapreneurship:
Creating new products, ventures, processes, or renewal within large organizations. Pros: highly team-based, greater access to resources, helps firm remain competitive. Cons: change can disrupt company performance, and you may need to be a high-ranking employee to lead the change.
Entrepreneurs inside or intrapreneurs:
Entrepreneurs who think and act entrepreneurially within organizations. Pros: drive process and improvements efficiently, job always changing as you find new opportunities, potentially have more access to resources and support. Cons: company absorbs most of the profit from the idea, company may not be receptive to change, may not receive the same amount of attention as if you owner your own business.
Social entrepreneurship:
Sourcing innovative solutions to social and environmental problems. Pros: opportunities include helping others and or the environment, promotes greater social good/purpose, potentially more self-actualizing/fulfilling sense of self-worth. Cons: may be less profitable, may be strong opposition to your goals, may be challenging to mobilize support/resources.
Family enterprise/ business:
Business owned and managed by multiple family members, typically across multiple generations. Pros: greater sense of community, ability to pass on generational knowledge, method for creating sense of legacy. Cons: conflicts may be difficult on family relationships, some family members may feel sense of obligation or entitlement, many family businesses fail in second or third generations.
Serial entrepreneurship:
Entrepreneurs who start several businesses, either simultaneously or consecutively. Pros: ability to learn from previous ventures, increased resources networks in successive endeavors, opportunity to continue trying new things. Cons: becoming distracted by too many things, moving on too quickly before stabilizing earlier startups.
High-growth entrepreneurship:
New business ventures with strategic goals of rapid scalability and profitability. Pros: it can be highly profitable, attracts investor attention, ability to create value for more people. Cons: it generally requires amount of debt, investors want ownership and control of the business, possibility to be pushed out of your own company.
Varying levels of entrepreneurial commitment:
Hobby: new venture for pursuing personal interests in your spare time. Part-time: starting a business while typically working full-time for another company. Lifestyle: working full-time as the only employee of the company. Small business is small to mid-sized company with relatively few employees without high-growth goals. High-growth business is typically a technology-focused business with aggressive growth goals.
To achieve goals entrepreneurs must ____, ______, then ______. This process goes planning, action, then result.
Unfreeze, change, refreeze.
Entrepreneurship as a method (modern):
Set of practices, phases of learning, iterative, creative, action focus, investment for learning, collaborative.
Entrepreneurship as a process (older):
Known inputs and predicted outputs, steps to complete, linear, predictive, planning focus, expected return, competitive.
Entrepreneurship method:
Entrepreneurs have fewer resources than large companies, so the consequences for failure are higher, learn from failure. Entrepreneurs have more uncertainty than large companies, you can decrease uncertainty by experimentation and improve risk through iterative feedback.
