M2

Question 1

What is an opportunity?

Answer 1

A favorable set of circumstances that creates a need for a new product, service or business.

Question 2

What are the different approaches to identifying opportunities?

Answer 2

-Observing environmental trends such as;
economic, social, technological and political forces

• Solving a problem
• Finding gaps in the marketplace

Question 3

What characteristics must exist for us to talk

about an opportunity?

Answer 3

(Think of TADA Acronym)

1. Timely
2. Attractive
3. Durable
4. Anchored in a product, service or business that creates or adds value for its buyer or end user.

Question 4

What factors influence emergence of

opportunities?

Answer 4

Environmental Trends

Personal Characteristics of an Entrepreneur

Question 5

Describe the entrepreneurship process(two types)

Answer 5

Externally Stimulated Opportunity Recognition: 
1. Decision to start 
2.Opportunity Recognized 
3. Opportunity Chosen
4. Opportunity Refinement
5. Business Concept Identified
6. Commitment to physical creation
Internally Stimulated Opportunity Recognition:
1. Need Recognized
2. Need Fulfilled
3. Business Opportunity Recognized
4,5,6 same as above

Question 6

What entrepreneurship models have we

discussed?

Answer 6

Timmons Model

Question 7

Discuss Risk versus uncertainty

Answer 7

Risk: Known distribution and unknown drawn
Uncertainty: Unknown distribution and unknown draw

Question 8

Describe different types of Environmental Trends?(In regards to opportunity)

Answer 8

Economic Factors - State of the economy, Level of disposable income, Consumer spending patterns
Social Factors - Social and cultural trends, demographic changes, What people think is “in”
Technological Factors - New technologies, emerging technologies, New uses of old technologies
Political and Regulatory Changes - New changes in political arena, new lans and regulations

Question 9

Describe different types of Personal Characteristics?(In regards to opportunity)

Answer 9

Prior Experience - Ex. Working in an industry might help to find an undiscovered market niche.
Cognitive Factors - Entrepreneurial alertness=the ability to notice things without engaging in deliberate search.
Social Networks - Substantial networks - Exposure to more opportunities & ideas.
Solo​ ​entrepreneurs​​ ​=​ ​those​ ​who​ ​identified​ ​their​ ​business​ ​ideas​ ​on​ ​their​ ​own
Network​ ​entrepreneurs​​ ​=​ ​those​ ​who​ ​identified​ ​their​ ​ideas​ ​through​ ​social​ ​contacts​.
Strong-tie​ ​relationships​​ ​=​ ​characterized​ ​by​ ​frequent​ ​interaction​ ​with​ ​like-minded​ ​people​ ​(*friends, spouses)
Weak-tie​ ​relationships​ ​=​ ​characterized​ ​by​ ​infrequent,​ ​casual​ ​interaction​
Creativity - The process of generating a useful idea. Stages: Preparation –> Incubation –> Insight –> Evaluation –> Elaboration

(Who am I, What do I know, Whom do I know)

Question 10

Describe the corridor principle

Answer 10

Once an entrepreneur starts a firm, new venture opportunities become apparent. This is called the corridor principle. The insight provided by this principle is simply that once someone starts a firm and becomes immersed in an industry, its much easier for that person to see new opportunities in the industry than it is for someone looking in from the outside.

Question 11

Describe the Timmons Model with 3 factors

Answer 11

1. The opportunity Factor
2. The team factor
3. The resources factor