Exam 1- Chapter 1-4,6

Question 1

Global entrepreneurship monitor

Answer 1

joint research effort among international universities and the International Council for Small Businesses (115 countries)

Question 2

Total early-stage entrepreneurship activity (TEA)

Answer 2

Consists of new businesses less than 3-5 years old

Question 3

Entrepreneurship

Answer 3

Art of turning an idea into a business. When individuals pursue opportunities.

Question 4

Entreprenurial specturm

Answer 4

conservative - wait-and-see approach
entrepreneurial - proactive

Question 5

Characteristics of Entrepreneurs:

Answer 5

1. passion for business
2. tenacity despite failure
3. execution intelligence
4. product/customer focus

Question 6

Why become one?

Answer 6

1. be your own boss
2. pursue your own ideas
3. financial rewards

Question 7

Myths

Answer 7

entrepreneurs are:
born
gamblers
only motivated by money
need to be young
love spotlight

Question 8

Types of startups

Answer 8

1. substantive firms - small firms that yield income for owners as if they work for an employer
2. Lifestyle firms - allow owners to pursue a lifestyle (ie. trainer)
3. Entrepreneurial firms - bring new products and services to the market. (Google, Apple)

Question 9

Idea

Answer 9

Concept or vision

Question 10

Opportunity

Answer 10

favorable set of circumstances that create a need

Question 11

Opportunity recognition

Answer 11

process of identifying a feasible niche in a market for business

1. externally stimulated - work at a firm and identify an opportunity
2. internally stimulated - recognizes a problem and creates a business

Question 12

Opportunity exploitation

Answer 12

activities conducted in order to gain economic returns from the discovery of a potential entrepreneurial opportunity

Question 13

Qualities of opportunity

Answer 13

durable
timely
attractive
adds value to customers

Question 14

identifying opportunity

Answer 14

observe trends
technology advancements
economic forces
political and regulatory change

Question 15

feasibility analysis

Answer 15

process of determining if a business is viable

Question 16

business model

Answer 16

plan to create deliver and capture value for all stakeholders
explains what business plans to accomplish with relevant internal and external elements

where am i now
where am i going
how will i get there