M1

Question 1

What is entrepreneurship?

Answer 1

The​ ​discovery​ ​&​ ​exploitation​ ​of​ ​profitable​ ​business​ ​opportunities​ ​for​ ​the​ ​creation of​ ​personal​ ​wealth​ ​and,​ ​as​ ​a​ ​consequence,​ ​for​ ​the​ ​creation​ ​of​ ​societal​ ​value.​ ​Or:​ ​The​ ​creation​ ​of​ ​new economic​ ​activity

Question 2

Who is an entrepreneur and what does

he/she do?

Answer 2

Entrepreneurs are proactive innovators, take calculated risks.
They main reasons to become an entrepreneur:
* Being one’s own boss
* Pursuing one’s own ideas
* Pursuing financial reward

Question 3

What characteristics do successful

entrepreneurs possess?

Answer 3

• Passion for the business
• Product/customer focus
• Tenacity despite failure
• Execution intelligence

Question 4

What factors contribute to the ability to

identify/create an opportunity

Answer 4

Prior experience
Cognitive factors
Social Networks
Creativity

Question 5

Describe the differences between first-person opportunities and third-person opportunities

Answer 5

A first-person opportunity is an opportunity that is viable for yourself because of your specific set of resources.

A third-person opportunity is a viable business opportunity that is suitable for someone with other resources than the ones you possess.

Question 6

Describe different types of resources

Answer 6

-Core Competencies - A core competency is a specific factor or capability that supports a firm’s business model and sets it apart from its rivals. (Expertise)

• Key Assets - Are assets that a firm owns that enable its business model to work. (Patent)
• Intangible(eg reputation) vs. Tangible (eg workers)
• Seperate between current and aspirational resources

Question 7

Describe three types of start-up firms

Answer 7

Salary substitute firm: A similar level of income that they would be able to earn in a conventional job. ( Common, easily available, ex dry cleaner, restaurants).

Lifestyle firms: Provide owner(s) the opportunity to pursue a particular lifestyle and make a living out of it. (ex. ski instructor).

Entrepreneurial firms: Bring​ ​new​ ​products​ ​and​ ​services​ ​to​ ​the​ ​market​ ​by​ ​creating​ ​and​ ​seizing​ ​opportunities regardless​ ​of​ ​the​ ​resources​ ​they​ ​currently​ ​control.
Create​ ​products/services​ ​with​ ​worth​ ​&​ ​importance​ ​to​ ​customers.