course outcome 3 Flashcards
central to the domain of entrepreneurship and revolves around the answers to the following:
Why?
When?
How?
opportunity identification
societal trends
technology trends
economic trends
government trends
sources of innovative ideas
unexpected occurrences
incogruities
process needs
industry and market changes
demographic hanges
perceptual changes
knowledge-based concepts
sources of innovative ideas
- Employs a disciplined, precise, methodical approach
- Is concerned with solving, rather
than finding, problems - Attempts to refine current practices
- Tends to be means oriented
Is capable of extended detail work - Is sensitive to group cohesion and cooperation
Adaptor
Creativity is the generation of ideas that results in the improved efficiency or effectiveness of a system.
Creative thinking is blended with imagination in a logical process.
Develop an ability to see, recognize, and create opportunity where others find only problems.
entrepreneurial imagination and creativity
- Approaches tasks from unusual angles
- Discovers problems and avenues of solutions
- Questions basic assumptions related to current practices
- Has little regard for means; is more interested in ends
- Has little tolerance for routine work
- Has little or no need for consensus; often is insensitive to others
Innovator
totally new product, service, or process
invention
new use or different application of an already existing product, service, or process
extension
creative replication of an existing concept but with own creative enhancement
duplication
combination of existing concepts and factors into a new formulation or use
synthesis
The need for approval
The need for independence
The need for personal development
Welfare (philanthropic) considerations
Perception of wealth
Tax reduction and indirect benefits
Following role models
components of new-venture motivation
entrepreneurial motivations
personal characteristics
the environment
the venture
reasons for starting a venture
Lack of objective evaluation
No real insight into the market
Inadequate understanding of technical requirements
Poor financial understanding
Lack of venture uniqueness
Ignorance of legal issues
pitfalls in selecting new ventures
- prestart-up phase
- start-up phase
- post start-up phase
phases in new-venture start-ups
Begins with an idea for the venture and ends when the doors are opened for business.
prestart-up phase
Commences with the initiation of sales activity and the delivery of products and services and ends when the business is firmly established and beyond short-term threats to survival.
start-up phase
Lasts until the venture is terminated or the surviving organizational entity is no longer controlled by an entrepreneur.
post start-up phase
- uniqueness
- investments
- Growth of sales (Lifestyle ventures, Small profitable ventures, High-growth ventures)
- product availability
- customer availability
critical factor for new-venture development
- creating the new venture
- Acquiring an existing venture
- obtaining a franchise
pathways to new ventures
- personal preference
- evaluation of the venture
- asking key questions
- examination of opportunities
acquiring an established entrepreneurial venture
less fear about successful future operation
reduced time and effort
purchasing at a good price
advantages of acquiring an ongoing venture
the business environment
profits, sales, and operating ratios
assets of the venture
factors affecting sale of the venture
Any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services
franchising
A purchaser of a franchise
franchisee
The seller of the franchise
franchisor
Training and guidance
Brand-name appeal
A proven track record
Financial assistance
advantages of franchising
Franchise fees
Franchisor control
Unfulfilled promises of franchisor
disadvantages of franchising
Secured financing of a new venture that involves a payback of the funds plus a fee (interest for the use of the money)
Commercial Banks
Peer-to-peer Lending (P2P)
debt financing
Money invested in the venture with no legal obligation for entrepreneurs to repay the principal amount or pay interest on it
Public Offering
Private Placements
equity financing
