Innovation & Entrepreneurship Flashcards
What does the term entrepreneurship mean?
Process initiated and carried out by individuals, which serves to identify, evaluate and exploit entrepreneurial opportunities
closely linked with the assumption of risk
What are entrepreneurs?
- identify business opportunities and make technology concepts commercially viable
- often but not always business owners
- creation of economic structures
What is a start-up?
taking a stake in an existing company, taking over an existing company, joining a franchise company or establishing new enterprise
Describe the GEM.
Global Entrepreneurship Monitor (GEM)
- collects the number of founders worldwide
- well-founded recommendations for political decision-makers
- Focus on early stage entrepreneurs who are in the starting of their business or have been running their own business for no more than 42 months
- all types of self-emploment are considered to be business start-ups
What is TEA?
Total entrepreneurial activity (TEA)
indicates the proportion of target group of early stage founders in the population
Describe the term nascent entrepreneur
Nascent entrepreneur = future founder
- are busy in their foundation but have not yet completely established the business
Describe the critique regarding GEM.
- “hobby” start-ups with low added value are also included in the statistic
- believe that only innovative ventures should be included
- why 42 months is the start-up cut off date is unknown
Describe the typical classification for SMEs.
Micro: - persons employed: up to 9 and - turnover up to 2 mil or - balance sheet p.a. € up to 2 mil
Small: - persons employed: up to 49 and - turnover up to 10 mil or - balance sheet p.a. € up to 10 mil
Medium: - persons employed: up to 249 and - turnover up to 50 mil or - balance sheet p.a. € up to 43 mil
Differentiate the terms serial entrepreneur and portfolio entrepreneur.
Serial Entrepreneur: founds various companies in sequence, sometimes in different industries and often exit one as they move to the next
Portfolio Entrepreneur: manage an entire portfolio of firms; several companies in parallel
What are central elements of the study of an entrepreneur?
- entrepreneurial opportunities pursued
- resource required
- form of orga chosen
- environment in which the enterprise operates
Who is an entrepreneur?
Cantillon (1755): individual driven by pursuit of profit; acquires goods at fixes price and sells later to an undetermined price hoping to make profit and characterised by the assumption of risk
Say (1828): production process: land, capital, employment
Knight (1921): entrepreneur as carrier of uncertainty
Schumpeter (1934) characterised by innovative behaviour (creative destruction) to destroy existing structures and create new ones
Kirzner (1973) primarily uses arbitrage opportunities
current authors: Changes in existing products and processes achieved by entrepreneur through combination of leadership, motivation, crisis management and risk-taking.
Lazear (2012) subset of leaders because of vision, value of goods and cost-effective services capable of communicating the vision to others
What’s the current definition of characteristics of an entrepreneur?
- bearer of risk: make decisions under uncertainty
- arbitrageurs: exploit price differences and market opportunities
- innovators: introduce new technology or products, discover new markets, create new types of institutions
- coordinators of scarce resources who collect various resources
What are the most prominent market exits of young companies?
1 market exits without insolvency proceedings
- personal reasons (42%)
- economic or financial reasons (32%)
2 Insolvency petition filed
- insolvency proceeding concluded - company closed (22%)
- insolvency proceeding pending - company reorganised (4 %)
Describe the discovery approach of an entrepreneurial opportunity.
- opportunity already exists and merely needs to be discovered
- entrepreneurs are special people who recognise and take advantage
- detailed data collection and market research are imperative
- important to act quick before someone else takes advantage of the opportunity
- opportunities are created by changes in markets, industries, laws, regulations demographics etc.
Describe the steps of the role of the entrepreneur in the discovery approach.
1.1 Taking advantage of the business opportunity
1.2 Evaluation of business opportunities
1 ) identification of business opportunities
2 ) defining of goals and formulation of a plan to achieve the goals
(entrepreneur seeks resources to pursue the entrepreneurial opportunities)
3) entrepreneur develops a solution to satisfy the perceived needs
^ adjustments based on feedback from market
(entrepreneur seeks resources to pursue the entrepreneurial opportunities)
4) market entry
Describe the creation approach of entrepreneurial opportunities.
- opportunity is created and not discovered
- creation is not constructive but takes form of creative destruction
- entrepreneur creates an innovation that allows them to pursue the opportunity - makes existing opportunities redundant
Describe the steps of the role of the entrepreneur in the creation approach.
Follows a decision logic (effectuation process)
1) Who am I? What do I know? Who do I know? (effective means)
2) What can I do? (effective course of possible action)
3) Exchange with other people
4) Binding commitments from stakeholders
4. 1 Fresh objectives –> What can I do?
4. 2 Fresh funds –> expanding cycle of resources (start again with 1)
What are principles guiding the process of opportunity creation?
1 Sparrow in hand principle: something new is created only with existing possibilities, no new paths are taken
2 Affordable loss principle: alignment is made according to what one is prepared to lose, instead of calculating possible returns
3 Patchwork principle: negotiations are conducted with all persons who are willing to make a contribution. Goals determined by who will join.
4 making lemonade out of lemons principle: unexpected coincidences and circumstances are acknowledged and actively used
5 Pilot in control principle: human action is primarily driver of new opportunities. Rather than relying on exploitation of technological or socio-economic changes
How can opportunities be assessed?
Validation of the business idea
- is the idea viable (market feasible)
- is its implementation worthwhile? (economic feasible)
- Is the idea feasible (technical)
1 Technical feasibility
- degree of technical possibility, innovation, patentability, general intellectual protection are examined
- is the idea technically possible
- develop first prototype
2 Market feasibility
- determine whether it is possible to bring the service or product to market
- needs to offer advantage over existing solutions
- research of similar products, services that satisfy same needs
- are customers willing to pay for the product
- are the resources available to pursuit the opportunity
3 Economic feasibility
- calculated expected return, price, market volume, market (estimates)
- anticipated costs for pursuing the opportunity
- if feasible, establish business plan
What are motives of entrepreneurs?
1 self-realisation: realise goals and dreams, and/or looking for a challenge
2 Material remuneration: would like to be paid according to their efforts; want to pursuit own venture
3 Innovation: want to create something new
4 Striving for independence: want to be independent and their own boss
What are possible barriers of establishing a new venture?
- lack of resources
- compliance costs (high taxes or other fees)
- uncertain future
- fear of failure
What are the three characteristics particularly relevant for an entrepreneurial personality?
1 Performance motivation: Weill perform and deal with tasks that are both challenging and feasible
2 High self- efficacy expectation: belief that one is responsible for one’s own fate and the results of one’s action; can actively influence own outcome
3 Attitude towards risk: tendency to voluntarily expose themselves to situations with an uncertain outcome; take calculated risks and are willing to develop the ability to manage such situations appropriately
What are important factors in the decision to become an entrepreneur?
1 Pursuit of independence: independent of authority and realise own potential
2 Problem orientation: proactive mindset often allows to focus on the possible solution of a problem
3 Resilience: refers to physical stamina and mental ability to perform under pressure
4 Emotional stability: ability to overcome frustration more easily
5 Assertiveness: will pursuit one’s interest often includes willingness to lead others
6 Social adaptability: flexibility to adjust to the changing requirements
What are environmental factors relevant for entrepreneurs?
- market
- uncertainty due to technological change
- capital requirements
- competitive density
- enforceability of industrial property rights
- technology transfer
- other social-cultural factors
What are pros and cons of team foundations?
Pro:
+ greater capacity for problem-solving, broader horizon of experiences and wider range of knowledge
+ ability to hep one another
+ ease of coping if someone leaves
+ less occurrence of feeling alone or lonely
Cons:
- possible difficulties in cooperation due to unclear competences and group thinking
- team only working together effectively after extended period of time
- constructive resolution of any conflicts that arise in the team, requiring conflict competences, respect, listening, participation, and honesty
Describe the term business model.
Business model = how added value is created for customers: how a return on investment is secured in the organisation
- basic idea
- captures purpose of the venture
- possible blueprint for pursuing a business idea
What are steps in the development of a business model?
1 Customer: Who is the customer? What are their interest, characteristics, needs?
2 Opportunity: Market opportunities? Potential? Trends, technology and market changes?
3 Solution: What exactly does the solution look like? How does it meet customers needs?
4 Team: Who is needed to develop the solution successfully?
5 Advantage: What are the advantages over the others?
6 Results: What results are expected?
Describe why a product alone cannot create value.
The value proposition captured by the entire business model creates
Product/Service –> Solution –> Customer task
Value Prop is addressed to customer task
Value Prop is supplied by business model
Satisfied customers create business model
What is a value proposition?
What are four criteria that help to formulate it?
promise of value to be delivered to a customer through the use of a product or service
1 Value prop:
- factors that should inspire the customer
- customer segment is described
- task solved for the customer is described
- benefit must be clearly defined
2 Business Structure:
- way the business is structured
- convey enthusiasm
- how is the promise of value prop convincingly fulfilled?
- Requires: suitable sales channel, production, or service processes, core capabilities and business partners
3 Profit model:
- how is money earned?
- description of costs and revenues
- make or buy decisions
- long term survival assessment
4 Entrepreneurial spirit:
- Who is the member of the team?
- desired professional and social skills
- team should embody values of the value prop (rules, ideals, manners)
- manage customer complaints appropriately
Which are core duties a founder/entrepreneur should be able to fulfil?
1 customer understanding
2 business architect
3 basic economist
4 team builder
Not exhaustive. Entrepreneur must play different roles:
- visionary
- discoverer
- information broker
- decision-maker
- salespeople
- networker
- front line worker
- problem sovler
- controller
Describe business model canvas.
What are elements of it?
Useful tool to visualise the business model.
- Key partners
- Key activities
- Key resources
- Value Proposition
- Customer relationship
- Channels
- Customer segments
- Cost structure
- Revenue streams
What’s a business model innovation?
Unusual business models that are atypical in the industry
Blue ocean products: no competition and untouched markets
Red ocean: very full, hyper competitive market with price competition
How can blue oceans within business model innovations be discovered?
1 Rule of the game and industry are analysed (strategy contour)
Graph:
- horizontal = typical factors that determine competition
- vertically = level the factors are met
2 Benefit curve is plotted in graph
- shows how customer obtains benefit through transformation
3 “Four action format” can be used to develop a new benefit curve
1) Which elements were previously taken for granted and can be deleted?
2) Which factors can be reduced far below industry standard?
3) Which factors far exceed the standard?
4) Which new factors should be created for the industry?
What are steps in a strategic plan development?
1 Vision:
- desirable corporate image for new 3+ years
2 Mission:
- purpose and nature of the company
3 Strategic corporate goals:
- medium / long-term goals the company pursuits
- product-market combinations
4 Operational targets
- market share, quantity of a product sold, key financial figures, profitability
What are possible generic strategies resulting from a SWOT-Analysis?
1 Expand: combination of strengths/opportunities
2 Protect: strengths/threats
3 Catch up: Weaknesses/opportunities
4 Avoid: weaknesses/threats
Expand as most favourable variant:
1 cost leadership: price advantages
2 differentiation: at least one unique advantage
3 concentration on focal points: concentrating on targeted niches or a better cost situation in the segments thereby increase customer loyalty
What is important for every strategy?
What are success factor criteria?
Strategy must be implemented and critically reviewed based on regular basis.
Seven Success factors: 1 market positioning 2 innovation 3 uniqueness of offering 4 structure of sales channels 5 management experiences 6 ability to meet demand 7 market environment
What is the recommended approach for strategy?
1 Quality should generally take priority over cash flow (market share over profit)
2 focus on rapid growth, aggressive marketing used to gain and defend market share
3 high productivity with particular emphasis on experience and leaving curve effects
4 profit for which the prerequisites were created ca finally be gained
Describe the concept of innovation.
Brockhoff:
- Innovation as an invention that is carried through entrepreneurial success
- invention of a new product, service, or process
- requires investment in production, preparation and market development
Lyons:
- what defines who wins and loses
- successful commercialisation of innovations is the main focus
Hauschildt:
- novelty “qualitatively novel product or process that differ noticeably from a comparative state
What are possible content-related innovation dimensions?
What is new?
1 Process innovations:
- novel factor combination
- good is produced more cheaply, qualitatively, better or more environmentally friendly, safer or faster
- efficiency oriented
2 Product innovation:
- further than process innovation and also includes recycling
- product to fulfil completely different purposes
- serve existing purposes differently
- effectiveness oriented
3 Service innovation:
- product-service systems where product and process innovations coincide
- immaterial, heterogeneity, inseparability and transience
4 Market innovation:
- new sales or procurement markets
aim to open up new customer or supplier potential
5 Structural innovations:
- renewals in corporate structure
- work structure, new work, schedules, workplace models, new personnel development procedures
- increase in employee qualifications and/or motivation
6 Cultural innovations:
- improvement on social sphere
- change in cooperation between employers and trade unions
What isnovelty-degree-related innovation?
Novelty-degree = intensity
How new is new?
- inflationary way of word innovation ranges from new designs up until groundbreaking innovations
- concept according to target groups and degree of novelty
What is subjective innovation?
New for whom?
- clarified by focusing on different target groups
- new for individual (manager, company, all managers of a company?)
- novelty for industry
- novelty for entire nation
What is the actor dimension of innovation?
New by whom?
- large number of different actors are involved in the creation
- implementation across various departments
- external actors such as customers, suppliers, cooperation partners play an increasingly decisive role in innovation (open innovation)
What is open innovation?
refers to the opening up of the entrepreneurial innovation process to include the outside world
e.g. actor dimension of innovation
participation of
- partners
- suppliers
- customers, etc.
What is the process dimension of innovation?
Where does the innovation begin, and where does it end?
- innovation through systematic process
- closer look at product or service area that is not yet known in detail
- empirical causes and effects and functional connections
4 results in innovation (new product is published)
5 development and creation of designs, test facilities, prototypes, etc.
6 execution (conversion into economic unit on the market)
7 ongoing reprocessing
innovation management ends with transition to daily routine
What is the normative dimension of innovation?
New = successful
- approach that only takes the existence of an innovation seriously if it is economically successful
- questionable: no-one would start a project if success had to be guaranteed from the beginning; market development can only be estimated
What are possible dimensions of innovation?
1 content-related 2 novelty-degree-related 3 subjective 4 actor-related 5 process-related 6 normative
What is innovation management?
- prerequisite for sustainable corporate success
- targeted creation of innovations require a conscious design
- innovation potential identification
- to generate ideas, willingness of employees to act innovatively must be shown
- promoted by company management to set clear goals and strategies that include room for innovation
Innovation management = dispositive design of innovation processes
- shape innovation processes
> in contrast a system-theoretical view focuses on the design of the innovation system
What are possible innovation strategies?
Design of innovation strategy is an important management task
Ansoff and Stewart:
1 First to market
- intention of a company to always be the first innovator in a market
2 Follow the leader
- company waits for another company to build up the market
- company is then simply and quickly followed resultingg in less favourable image
3 me-too
- copy of the competitor is brought to market
- saves costs and thus exploits cost advantages
Maidique and Patch: 1 First to market (pioneer) 2 second to market (fast follower) 3 late to market (cost minimisation) 4 market segmentation (specialist)
Pepels: 1 Pioneer 2 Early follower 3 Modifier 4 Latecomer 5 Persister
What are innovation strategies according to Pepels?
1 Pioneer
* innovation leader constantly looking for new products, processes, markets
* focus on technological progress with option of competitive advantage
+ chance of rapid increase in volume and cost digression
- high risk as demand is not secure and large investment necessary
2 Early follower * adapt the innovation of pioneers * bring new products, optimise existing products, achieve benefits for customers \+ fewer risks than the pioneer \+ investments are lower - pioneers intellectual propert protection - image of innovation leader - cost digression cannot be achieved
3 Modifiers
* incorporate innovation at later stage
* experience of pioneers and early followers
+ favourable competitive advantage created by the customer-specific orientation
- barriers of entry
4 Latecomers
* copy of innovations of established users to the market
+ development costs are saved and risk avoided
- products do not have USP
- company must be cost leader
- role requires process, structural, or market innovations (latecomer becomes pioneer in this sense)
5 Persisters
* existing range of products with existing processes and structures will remain within this existing range
+ no investment risk
- cannot gain any image or competitive advantage
What are characteristics considered to be a prerequisite for innovative employees?
1 Willingness to learn, curiosity, and flexibility 2 Sensitivity (recognise opportunities) 3 Confidence 4 Decision making ability 5 sense of purpose and loyalty to goals 6 Enthusiasm 7 Communication skills
Describe the three-phase model by Thom.
What is it used for?
Design of Innovation Processes as part of the Innovation management
1 Idea Generation
- 1 Search field determination
- 2 Finding ideas
- 3 Suggesting ideas
2 Acceptance of ideas
- 1 Examination of ideas
- 2 Preparation of implementation plans
- 3 Decision on a plan to be implemented
3 Realisation of ideas
- 1 Concrete realisation of the idea
- 2 Distribution of the new idea to addressees
- 3 Acceptance control
Describe the stage-goal approach by Cooper.
Innovation Management approach
- standardised multi-stage procedure with a series of work phases (stages) and decisions (goals)
- aim is to ensure process quality in the development of product innovations
- process-related influencing factors turned out to be decisive for economic success
- each stage contains cross-divisional activities by different functional areas or departments
- milestones with predefined criteria is used to decide whether the next work phase should begin
- if project does not achieve objectives, it is terminated
What are the phases of Coopers Stage-gate model?
Discovery: Idea Generation (agile)
Gate 1 - Idea Screening
Stage 1: Idea Scoping (agile)
Gate 2 - 2nd Screening
Stage 2: Build Business Case (Iteration & spiral)
Gate 3 - Go to development
Stage 3: Development (Iteration & spiral)
Gate 4 - Go to test
Stage 4: Testing & Validation (accelerated)
Gate 5 - Go to launch
Stage 5: Launch (accelerated)
Post Launch Review
What are advantages of the Stage-Gate Model procedure by Cooper?
1 Risk Reduction: divided into a number of work phases between go and no-go decisions
2 Simplicity: decision phases are linked to clearly defined criteria (gatekeepers from management make decisions on further action and investments)
3 Transparency: everyone can see investment in good ideas with good progress are made on the basis of defined criteria
4 Support: set of methods, tools and templates for each work and decision phase; scoring; NPV, IRR and PI
5 Experience: tested and used for approx. 25 years
Which modifications of the stage-gates model are possible?
Depending on scope and risk, three variants:
1 major risk = entire process with 5 work and decision phases are implemented
2 moderate risk = work phase 1 and 2 as well as 3,4,5 are combined and number of decisions is reduced to two
3 low risk / small projects = sufficient to combine work phases 1 and 2 as well es 3,4,5 ant to provide only for one decision
Agile stage-gate approach is also possible.
Describe the phases of the hybrid-stage-gate model.
in every phase constantly included:
- several time-boxed iterations in every phase
- customer feedback (voice of customer)
- user feedback
1 Ideation:
- generate ideas: technical, marketing, others
G1 Idea Screen
2 Concept:
- Concept development & scoping: technical, marketing, production
G2 Go to business case
3 Business case
- build business case: technical, marketing, production
G2 Go to development
4 Development
- create the product: technical, production, marketing
G3 go to test
5 Testing
- field trails, customer tests, trial operations: technical, production, marketing/sales
G4 go to launch
6 Launch
- strate production & selling: technical, production, marketing
PLR
What is meant by cloud phase and building block phase in Innovation management?
- division of innovation process into cloud phase and building block phase
1 Cloud Phase:
* People management, ideas & knowledge, creative iterative
> search field analysis
- business opportunity
- research & technology
- GAP analysis on strategy
- customer ideas, market trends
> result: Business Idea
- Technical feasibility: lab samples, SW prototypes
- Entrepreneurial feasibility: patents, partners, resources
- Market feasibility: lead user, market segment, competition
> Result: Business Case
2 Building Block phase
* proces mangement, engineering & implementation, structured iterative
- Systems design: realisation, competence development
- Development process: R&D, production, purchasing
- Marketing plan: Partnering, field tests
> Series introduction & market launch
> product care
What are core success factors of innovation processes?
1 Consider risk of failure in advance (always a risk)
2 clear procedure with stop-and-go criteria is necessary
3 Dividing the process into cloud and building block phase
4 Phase objectives of the process should be defined for all results
5 Iterations must always be possible
6 Changing target conditions should be prevented
7 Stop-and-go. policy should be avoided (consistency and continuity)
8 Product development runs parallel to production process development but the cloud and building block phase must not be carried out in parallel
9 support of management is always necessary (promoter)
What is the purpose of protection strategies?
- chance that products and/or technologies will lead to technological benefit or significant competitive advantage that needs protection from competitors
- achieve long-term freedom of action and block competitors
- limit the danger of imitations quickly and inexpensively
Describe factual and legal protection strategies.
What are their components?
Competitive advantages through temporary monopoly benefits
1 Legal protection strategies > long term, more sustainable > property rights secure one's own freedom of action and block competitors * patents * brands * utility models * designs
(support and strengthening of faction protection strategies)
2 Factual protection strategies > faster, better, cheaper > reduction of the risk of imitation * secret processes and procedures * strong distribution channels * binding of suppliers * volume advantages * customer loyalty * strong brand image
What are the three core dimensions of a patent strategy?
1 Freedom of action (avoid conflicts with third parties):
- preventive, prophylactic measures taken before or during the development of products or technologies
- patent searches and their analysis
- proactive in-licensing: acquisition of rights by third parties on basis of license agreement
- mutual cross-licensing: mutual acquisition of rights between two parties by a license agreement
- destruction of interfering patents
2 Protection against imitations/blocking of competitors (prevent reproduction):
- technological circumvention solutions due to existing patents
- company must be willing to enforce property rights
3 Commercialisation through licensing:
- marketing its intellectual property rights externally
- consideration of profit-loss
Describe the steps in the St. Gallen patent management model.
Model is based on technology portfolio and identifies suitable measures along the technology life cycle.
1 Exploration:
- potential are identified to detect any existing earlier inventions (patent scanning)
2 Set-up
- focused patent reached are carried out (patent monitoring)
3 Lock up
- if own resources of strategic importance have built up, risk of conflict with patents from competitors increase
- patent law measures should be taken by means of expert opinion and appeals
4 Optimisation
- if company possesses high level of expertise but its strategic importance is declining, existing patent cluster should be reviewed in terms of cost/benefits
- out-licensing can bring short term returns
5 Dismantling
- if strategic importance has decreased significantly, it should be further reassessed
- surrender patent rights, sell them, donate them (exit strategies)
What is the difference between classic and ethnographic market research?
When is which approach viable?
Market Research:
- Users talk about their behaviour/preferences
- Users respond according to what they think is important
- User answer questions based on opinions and experiences
- analysis follows a defined thematic guideline
> appropriate when testing existing tasks
Ethnography:
- real, observable behaviour forms the basis of the analysis
- Users express their emotions, problems, and experiences through body language and spontaneous comments
- Researchers observe real problems at the moment they arise
- observation follows path of user
> Suitable for the detection of future innovation potentials
What are methods used in the ethnographic field research?
1 Participation observation:
- closest possible contact with the object of study by immersing themselves in the field of study through their own participation
2 In-Depth interviews:
- insight is gained into the world of the respondents
- everyday lives, dreams, values
- informational discussion style of interview
3 Artifact studies:
- observing how people use objects also leads to information bout the meaning of the objects
4 Video:
- over or covert
- pre and after perspective of events
5 Sorting cards:
- different cards are sorted by respondents in relation to a question
- results are photographed and statements are added
- useful for priorities or clustering of meaning
Describe empathic design.
- approach in which design of a new product is user-centred
- twofold: 1) empathy between user and dev; 2) between product and user
- Procedure: 1) users are observed and data is collected 2) observations are analysed 3) solutions are found and prototypes developed using creative techniques
- goal: integration of customers in early product development leads to better decisions
- not biased by devs mindset
- possible to respond to customers needs
What are objectives of BMW when using the empathic design approach?
1 User impulses: Testing what makes people want to use the product
2 Interactions with the user context: How the product fits into the user context
3 Unplanned product change by user: might change the product in unplanned ways to optimise its use
4 Intangible product characteristics: immaterial attributes of the product, which have an influence on the overall perception
5 Unarticulated customer needs: any (unconscious) problems while using are circumvented
What are selection criteria in order to choose a legal structure?
1 Legal structure that is customary in the trade
2 Liability, risk distribution, creditworthiness
3 Capital investment and asset protection
4 Management, decision making authority (corp governance)
5 Formation costs and current expenses
6 Tax Burden
7 Legal requirements, trade conditions
8 Business volume
What are possible legal structures of businesses in Germany?
Sole proprietorship:
- small business
- sole proprietor
- liberal professions
Partnerships:
- GbR
- OHG
- KG
- partner companies
Corporations:
- GmbH
- AG
- UG
- SE
Cross-form or special legal forms:
- GmbH & Co. KG
- dormant partnership
Describe the legal form Sole proprietor.
Einzelunternehmer
- in charge of the company and personally liable with all their assets
- not a merchant
- can be merchant - then e.K. (eingetragener Kaufmann)
