Final Exam Flashcards
Define entrepreneurship.
The process of discovery, evaluation, and exploitation of opportunities to introduce new goods and services.
How do entrepreneurial opportunities arise? 3 Types
Through new means, ends, or means-ends relationships.
Define productive entrepreneurship and give an example.
Creates economic and societal value (e.g., inventing smartphones).
Define unproductive entrepreneurship and give an example.
Exploits systems for private gain (e.g., exploiting tax loopholes).
Define destructive entrepreneurship and give an example.
Harms society or the economy (e.g., organized crime).
What are four potential benefits of productive entrepreneurship?
Job creation, innovation, competitiveness, and wealth creation.
Define TEA.
Total early-stage Entrepreneurial Activity: % of adults starting/running a business under 3.5 years old.
Define EBO.
Established Business Owner: Owner of a business older than 42 months.
Define entrepreneurial intentions.
Plan to start a business within 3 years.
Define entrepreneurial capabilities.
Believe they have the skills to start a business.
Define entrepreneurial opportunities (as in, individuals seeing opportunities).
See viable opportunities nearby.
Define entrepreneurial discontinuance.
Shutting down or quitting a business.
Define entrepreneurial exit.
Leaving the business, whether or not it continues.
What are the two main factors that affect entrepreneurial activity?
Individual factors (traits, motivation, skills) and environmental factors (policy, finance, education, infrastructure).
List five key entrepreneur traits.
Openness, Conscientiousness, Extraversion, Agreeableness, Low Neuroticism.
How do entrepreneurs compare to managers in terms of openness and conscientiousness?
Entrepreneurs are more open and conscientious than managers.
List five entrepreneurial characteristics.
High need for achievement, internal locus of control, self-efficacy, innovativeness, risk-taking.
What are five factors that cause opportunities?
Technological advances, regulatory changes, social trends, economic shifts, market inefficiencies.
What are the two ways opportunities are discovered?
Accidental (passive alertness) and purposeful (active scanning, networking).
List three factors influencing opportunity discovery.
Entrepreneurial alertness, prior knowledge, and social networks.
What are the three steps of entrepreneurship as a process?
Opportunity recognition, evaluation, and exploitation.
Name the four types of entrepreneurial ventures.
Survival, Lifestyle, Managed Growth, and Aggressive Growth.
Describe a survival venture and give an example.
Basic subsistence (e.g., lawn care, Uber drivers).
Describe a lifestyle venture and give an example.
Stable income, no expansion (e.g., local barbershop).
Describe a managed growth venture and give an example.
Regional expansion and branding (e.g., walk-in clinics).
Describe an aggressive growth venture and give an example.
Exponential growth (e.g., Amazon, Facebook).
How do the four types of entrepreneurial ventures compare?
They vary significantly in growth rate, resource use, management style, financing source, and technology use.
What is the portfolio perspective on venture types?
Survival and lifestyle ventures form ~85% of startups. Managed and aggressive growth ventures drive most job and wealth creation.
Should governments only promote aggressive growth ventures? Why or why not?
No, because smaller ventures support local economies and inclusion.
Define necessity entrepreneurship.
Driven by survival, often in informal sectors.
What are the limitations of necessity entrepreneurship?
Limited reinvestment and growth potential.
Define the commodity trap.
Undifferentiated products compete on price, harming sustainability.
Define opportunity entrepreneurship and give an example.
Driven by innovation and growth potential (e.g., unicorns).
What are the four components of the entrepreneurial newness framework?
New product, new process, new market, or new business model.
Describe hockey stick growth.
Initial slow growth, then exponential.
What is ‘crossing the chasm’ and why is it important?
Crossing from early adopters to the mainstream is crucial for success.
Define social entrepreneurship.
Innovative activity with a social objective, direct action to improve lives.
How does social entrepreneurship differ from social service and activism?
Services maintain the status quo, activists advocate change, entrepreneurs act for change.
What are three structures of social enterprises?
Non-profit, For-profit with a social purpose, Hybrid (e.g., Grameen Bank).
How does social entrepreneurship differ from commercial entrepreneurship in terms of market failure?
Social solves unmet needs.
How does social entrepreneurship differ from commercial entrepreneurship in terms of mission?
Public good vs. profit.
How does social entrepreneurship differ from commercial entrepreneurship in terms of resource access?
Limited vs. open.
How does social entrepreneurship differ from commercial entrepreneurship in terms of performance metrics?
Social impact vs. financial results.
What does diversity in entrepreneurship mean?
Representation of various genders, ethnicities, cultures, and backgrounds in entrepreneurial activity.
What are the benefits of indigenous entrepreneurship?
Supports cultural resilience, sovereignty, and community development.
What are the benefits of immigrant entrepreneurship?
Brings innovation, a global perspective, and fills market gaps.
Why is promoting diversity in entrepreneurship important?
Enhances innovation, economic inclusion, and societal growth.
Define family business.
Owned and/or managed by family members; may be private or public (e.g., Walmart, Ford).
What are the potential benefits of family businesses?
Stability, trust, wealth creation, socioemotional value.
What are the potential challenges of family businesses?
Nepotism, family conflict, succession resistance.
What are the family business exit options?
Sale to a third party, IPO, liquidation, M&A, succession, management buyout.
What does succession planning in a family business involve?
Strategy, successor training, resource and knowledge transfer.
What are essential elements for successful succession planning in a family business?
Fairness and procedural justice.
Why do some family businesses avoid succession planning?
Emotional attachment, tax complexity, family conflict, lack of planning.
Define corporate entrepreneurship.
Entrepreneurship within established companies to drive innovation and growth.
What are the types of corporate entrepreneurship?
Corporate Venturing, Intrapreneurship, Strategic Renewal.
Why do companies pursue corporate entrepreneurship?
Boosts innovation, adapts to change, sustains competitive advantage.
What are enablers of corporate entrepreneurship?
Leadership support, culture, resources, incentives, strategic alignment.
What are barriers to corporate entrepreneurship?
Bureaucracy, resistance to change, risk aversion.
Define international entrepreneurship.
Innovative, risk-taking behavior crossing borders to create value (Oviatt & McDougall).
What are the three types of international entrepreneurs?
Born Globals, Gradual Internationalizers, Born-Again Globals.
What are the reasons for international expansion?
Opportunity-driven, resource-seeking, efficiency-seeking, network-driven.
What are enablers of international entrepreneurship?
Tech, networks, trade openness.
What are barriers to international entrepreneurship?
CAGE distance, limited resources, legal/regulatory hurdles.
What are the key drivers of internationalization?
Digitalization, global talent access, trade agreements, network ties.
Explain the CAGE framework.
Cultural, Administrative, Geographic, and Economic distance impact expansion.
How does technology entrepreneurship differ from digital entrepreneurship?
Technology: Innovation rooted in tech advancements. Digital: Focus on internet/digital tech for operations.
What is the life cycle of technology?
Emergence → Growth → Maturity → Decline; each phase influences entrepreneurial strategy.
Platform-based, product-focused, service-oriented, deep-tech, etc. (9 types covered in lecture).
What are the benefits of tech entrepreneurship?
Scalability, impact, efficiency.
What are the challenges of tech entrepreneurship?
High capital, competition, regulation, rapid obsolescence.
Define entrepreneurial ecosystem.
A set of interdependent actors and factors coordinated to enable productive entrepreneurship.
What are the elements of an entrepreneurial ecosystem?
Institutions, Culture, Infrastructure, Demand, Networks, Leadership, Finance, Talent, Knowledge, Intermediary Services.
What are the benefits of ecosystem building?
Job creation, innovation, funding, higher success rates, talent attraction, social impact.
What are the challenges of ecosystem building?
Coordination, inequality in access, cultural risk aversion, fragmentation.
Define a business plan and explain its importance.
Outlines vision, goals, strategies; attracts investors and guides execution.
Describe the lean startup approach.
Emphasizes fast, iterative learning with customer feedback.
What is the Business Model Canvas?
9-block tool for visualizing business logic (key partners, value proposition, revenue streams, etc.)
Define Agile development and MVP.
Agile = iterative development; MVP = minimal viable product to test assumptions quickly.
Compare the traditional vs. lean approach to business planning.
Traditional: detailed upfront plans. Lean: experimentation and flexibility.
What are the types of cash flow and why is it important?
Operational, Investment, Financing; positive flow is vital for sustainability.
Define bootstrapping.
Creative self-financing using personal savings, sweat equity, early revenue, etc.
What is the difference between equity and debt financing?
Equity: ownership dilution, no repayment. Debt: interest cost, retains control.
Define venture capital.
Professional investment in exchange for equity; often in scalable, high-growth startups.
Define business angels.
Wealthy individuals investing in early-stage ventures, often with social or local focus.
Define crowdfunding.
Raising small amounts from many online investors via donation, reward, debt, or equity models.
Why is marketing important in business?
Drives customer engagement, sales, and brand awareness.
Define marketing.
The process of creating, communicating, delivering, and exchanging offerings that have value for customers.
What are the core principles of traditional marketing?
The 4Ps: Product, Price, Place, Promotion.
What are the limitations of traditional marketing for startups?
Often not flexible or fast enough for startups or small firms.
Define entrepreneurial marketing.
Innovative, risk-taking, proactive marketing tailored to dynamic and uncertain markets.
How does traditional marketing differ from entrepreneurial marketing?
Traditional: structured, formal, long-term focused. Entrepreneurial: adaptive, informal, opportunity-focused.
How do startups differ from scaling companies?
Startup: temporary, experiments to find a scalable model. Scaling: growth-focused, efficient expansion.
What are internal (organic) growth strategies?
New product development, market penetration, product line extensions, geographic and international expansion.
What are external (non-organic) growth strategies?
Mergers & Acquisitions, Licensing, Strategic Alliances, Franchising.
What are the pros of internal growth?
Control, preserve culture, and innovation.
What are the cons of internal growth?
Slow, resource-heavy, capacity limits.
What are three entrepreneurship career paths?
Start your own business, join a startup, or become a corporate intrapreneur.
List key skills needed for entrepreneurs.
Problem-solving, creativity, adaptability, resilience, communication, financial literacy, leadership, market awareness.
Startup Garage, pitch competitions, mentorship programs, accelerator initiatives (e.g., The Crunch, Match UP, Ideas Lab).
What do Entrepreneurship Hub programs offer?
Skill-building, funding, mentoring, and networking to
What do Entrepreneurship Hub programs offer?
Skill-building, funding, mentoring, and networking to help students grow their ventures.
