Lecture 6 - Entrepreneurs

Question 1

What is the first mover advantage?

Answer 1

A sustainable competitive advantage from being a pioneer in a specific market due to lack of competition. There is time to build brand recognition and customer loyalty but have a high cost of later switching

Question 2

What is the first mover disadvantage?

Answer 2

First to move can also be the first to fail. Followers can learn from first mover mistakes and first movers bear the cost of creating the market. Followers can use new technologies or more efficient processes

Question 3

What are general attributes of entrepreneurs?

Answer 3

1. Desire to control own destiny/ make a difference/ reach full potential
2. Sense of invulnerability (confident, resilient and little previous exposure to failure)
3. Outsiders with few responsibilities (marriage, children, home)
4. Physical and emotional strength (better able to burn the candle at both ends)
5. Availability of resources (many people offering to help, a ‘harmless’ appearance)

Question 4

What are distinctive features of the biotech sector?

Answer 4

1. Institutional research (based in or around universities, need access to high tech equipment, skilled people and new ideas)
2. Intrapreneurs (entrepreneurs within an organisation)
3. Regulatory environment (complex, changing, expensive)
4. Capital (long-term investment, high chance of failure)
5. Networked organisations (biotech companies need to maintain relationships with many other organisations)

Question 5

What are general attributes of university academics?

Answer 5

Typically middle-aged with research or technical expertise that have good, steady incomes and benefits. Risk-adverse due to family responsibilities and rewards arise through academic activities not business activities