Comm 349 Midterm

Question 1

What is Entrepreneurship

Answer 1

Start or own a business, run a franchise etc

Question 2

GEM= global entrepreneurship monitor

Answer 2

is an annual study of entrepreneurial activity

Question 2

Nascent Entrepreneur

Answer 2

Someone who wants to start a business but has not launched it yet, just thinking about it

Question 3

Necessity Driven Entrepreneur

Answer 3

those who started a business because they needed a source of income and do not have another source

Question 4

Opportunity Motivated Entrepreneur

Answer 4

those who started a business because they needed a source of income and do not have another source

Question 5

Owner Manager

Answer 5

Those who are connected to a business for 3 and a half years

Question 6

Youth Entrepreneurs

Answer 6

Saskatchewan youth indicated that starting a business was relatively easy; our province has the highest score among others (65.2%) ages 18-24 and 25-34

Question 7

Characteristics of Entrepreneurs “POP”

Answer 7

Passion
Opportunity Seeking
Persistence

Question 8

Factors that contribute to entrepreneurial process

Answer 8

innovation, triggering event, implementation or growth
* 80% of people start companies based upon previous experience or areas that they are interested in

Question 9

Ecosystem

Answer 9

includes all the entrepreneur directly or indirectly interacts with such as customers, suppliers and others internal ecosystems- internal operations

Question 10

Opportunity

Answer 10

• If you want to be successful in starting your own business you must have an opportunity; to create something that is new or needed you must also have a management team and investors and lastly the resources
  
  • Timing: a crucial part people have to be ready for this idea

Question 11

Why choose entrepreneurship?

Answer 11

Satisfaction
Reward of profit
Be your own boss and make your own decisions
Lifestyle

Question 12

What drawbacks

Answer 12

Cost
Hard work
Long hours
Stress
Fear of failure

Question 13

Bazaar type of economy

Answer 13

Way of life, cultural and social buyers and sellers seek to maintain relationships with other sellers and buyers
Prices are established through negotiation with buyers often making the first offer

Question 14

Firm Type of Economy

Answer 14

Price is set and standard no changing it

Question 15

The new economy

Answer 15

Firms have established promotional offers and rewards programs giving benefits to higher spending customers then others
Companies are looking for alliances, airlines have done this by booking with one and going to a connecting flight with another company to get you to further destinations
The new economy is starting to reach negotiation process, for instance hotel pricing matching third party cites

Question 16

The sharing economy

Answer 16

When you share a product or service for instance handyman rental or AirBNB, Uber

Question 17

Canada= Entrepreneurial Hotbed

Answer 17

80% of all entrepreneurs say that starting a business was their best career decision, Canada is a great place to start a business and many new Canadians will open one, 50 or fewer employees is considered to be a small business, and more then 50 can often not be profitable

Question 18

The opportunity space

Answer 18

• When suppliers have less power the entrepreneur has the power to negotiate the price

Question 19

Macro trend

Answer 19

Over the last 50 years; the trend of dual-income households, obesity, sharing economy and urbanization. Look at the trends and how to adapt to changing your business to the changing world
* Changing what you offer for the age demographic

Question 20

S-Curve

Answer 20

The diffusion of product acceptance over time, people watch the trends and see how it goes before trying a new product

Question 21

Setting Price; Penetration pricing

Answer 21

producing more and selling more then the competition for less

Question 22

Financial analysis

Answer 22

very important, to see the population and how many other competitors are around

Question 23

Intrapreneurship- within a company

Answer 23

• Work for an organization, in charge of a department and still have the mindset of a entrepreneur they look for new opportunities and enjoy risks

Question 24

First nations, Indigenous, Metis Entrepreneurship

Answer 24

• Interwoven with stakeholders, lots of responsibility as your carrying a culture extra resources and grants set aside for these individuals

Question 25

Community Owned

Answer 25

Example Saskatchewan Riders; You can buy shares to promote this enterprise

Question 26

Family Businesses

Answer 26

Huge percentage of economic activity in US and Canada;
* Family dynamics can be hard to work with

Question 27

Social Entrepreneurship is defined by processes and people

Answer 27

Process-based definitions focus on action, social value creation, Opportunity recognition, opportunity exploitation and resource mobilization

Question 28

4 main types of social ventures

Answer 28

traditional, social purposes, social consequences and enterprising non profits

Question 29

Tenets of the Timmons Model

Answer 29

The opportunity, the lead entrepreneur and management team and the resources

Question 30

Start ups 5 Lean start up principles

Answer 30

1. entrepreneurs are everywhere, the drive to create
2. an institution that is managed to promote growth
3. how to build a sustainable business
4. work on feedback loops
5. measured by innovative accounting

Question 31

Business Model Creation

Answer 31

• Revenue streams there can be multiple, diversifying revenue streams is a good way to bring in more money
  
  • Business models can change to adapt to customers

Question 32

Franchisor

Answer 32

The term that sells the rights to do business under its name and continues to control the business

Question 33

Franchisee

Answer 33

the individual who is licensed to operate under the franchisors rules and directives

Question 34

Business Format Franchise

Answer 34

a type of franchise in which the product, method of distribution and sales management procedures are highly controlled

Question 35

Business Plan

Answer 35

Should effectively communicate, build and maintain credibility and should avoid showing unrealistic growth projections

Question 36

Internal vs External Business Plan

Answer 36

Internal; strategy, vision, implementation of initiatives measure and control tools
External; financing requests, personal recruitment, valuation of the business

Question 37

Financing Sources

Answer 37

Start up capital is included in the idea development phase and start-up phase
* Personal money is your own
* Love money is from people that love you

Question 38

Bootsrapping Financing

Answer 38

• What you already have, do not owe anyone anything

Question 39

Relationship or informal investor to investee

Answer 39

• Friends and family are hoping for something back; establish a payback plan and interest and formalize it regardless of how the business does usually a two year return
  
  • Reduced rent can be negotiated, to save money
  • Reduced rate; exchanging services between businesses

Question 40

Financing Sources

Answer 40

Lease incentives; finance terms from companies provides better warranties for repairs and replacements

Question 41

Crowd funding campaigns

Answer 41

Create videos or PowerPoint to crowdfunding websites, to sell your product and earn funding the Crowdfunder’s will get the product and percentage of first sales
* These websites will make 5% of the profit you will be 5% short of $1,000 and they also take 3% processing fees

Question 42

Scientific Research and experimental development program

Answer 42

• Can give prototypes for free, if your product does not fit their criteria others will

Question 43

Angel Investor

Answer 43

• Angel investors will want higher return than investing their money at the bank you must have a good credit score;
  
  • Like playing in the business world and want to make more money on investments rather than investing in the bank

Question 44

Types of angels

Answer 44

• Professional angels can be doctors, lawyers
  
  • Enthusiast angel; usually retired
  • Micromanagement angels; have a strong opinion