Mid-Term Flashcards
What is the definition of Entrepreneurship
Dynamic process of:
Vision
Change
Creation
Small Business owners:
Manage their businesses by expecting STABLE
Sales
Profits
Growth
Entrepreneurs focus their efforts on…
Profitability
Innovation
Sustainable GROWTH
Three types of Approaches to Entrepreneurship
Multidimensional
Integrative
Entrepreneurial Assessment
Integrative approach is built around…
The concepts of INPUTS and outcomes from the entrepreneurial process
Identifies 5 key elements
Entrepreneurial Assessment Approach
Stresses decisions
Multidimensional Approach
Environment+Organization+ changes over time
Common Characteristics of Entrepreneurs
Commitment, determination and perseverance
Persistent Problem Solving
Drive to achieve
What are two primary school’s of thought on entrepreneurship? Give two examples of each
Macro: Environmental and displacement
Micro: Entrepreneurship trait and venture opportunity
Creating something new
Entails new products, markets or methods of delivery
The dark side of entrepreneurship: What are we risking?
Career
Financial
Psychic
Family
Causes of Entrepreneurial Stress
People Problems
Loneliness
Immersion in Business
Need to achieve
The entrepreneurial Ego- Too much of a good thing?
Self-Destructive Characteritics
Entrepreneurial Motivation:
New Venture creation and sustain
Why is Corporate Entrepreneurship needed?
Rapid Growth/ Sophistication of competitors
Exodus of best and brightest people
Distrust of traditional corporate management
How to develop managers for corporate entrepreneurship? (Corporate Entrepreneurship Training Program)
The entrepreneurial experience Innovative Thinking Idea Acceleration Process Barriers and Facilitators to Innovative Thinking Sustaining Breakthrough Teams The Breakthrough Plan
Conceptualizing corporate entrepreneurship strategy
Clearly articulating the vision Encouraging Innovation Preparing for failure Developing individual managers Developing venture teams
Nature of Corporate Entrepreneurship
Corporate Venturing
Strategic Entrepreneurship
Corporate Venturing
Homegrown Innovation
Joint Venture
Investment/Acquisition
Strategic Entrepreneurship
Reason
Function
Mechanics
Key Factors for an organizations rediness
Management support Autonomy Rewards Time Availability Internal Organizational boundaries
What are three types of Corporate Entrepreneurship?
Internal corporate venturing
Cooperative corporate Venturing
External corporate venturing
Social Entrepreneurship
A new form of entrepreneurship with the purpose of social problem solving
Challenges of social entrepreneurship
New methods to manage waste Accountability issues Cost of "green" Goals profitable? Involvement of other players
Triple Bottom Line
Three P's: People Profit Planet Aims to measure financial, social and environmental performance
_________ _________ is central to entrepreneurship and involves:
Opportunity identification
Creative pursuit of Ideas
Innovation Process
The first step for any entrepreneur is the identification of a
Good idea
Good Ideas Involve
Creative thinking combined with systematic analysis
Addressing a specific need
Turning problems into opportunities
Endogenous View
Prior experience
Prior Education
Exogenous View
Trends Unexpected Occurances Incongruities (FedEx) Process Needs (Address pain) Perceptual Change (Atkins) Knowledge-based concepts
Casual problem solving
Disciplined, methodological approach
Refine current practices
Effectual problem Solving
Approaches tasks from unusual angles
Focus on ends
The specific function of entrepreneurship
Innovation
Process by which entrepreneurs convert opportunities into marketable ideas
Innovation
3 Novelty’s of:
Product (Iphone)
Method (Napster)
Market (Wii)
4 types of Innovation
Invention: Totally New
Extension: Builds on old idea
Duplication: Replication
Synthesis: Combine existing factors
3 Pathways to entrepreneurship
New Ventures
Acquiring an established Venture
Franching
Advantages of Acquiring an ongoing venture
Less fear about Successful future operation
Reduced time and effort
Purchasing at a Good price
Threats of Selected Venture
Business Environment
Profit, Sales and operating ratios
Assets of the Venture
Franchising
Any arrangement owner of trademark, trade name or copyright has licensed others to use it in selling goods or services
Franchisor Provides
Company name Symbols, logos, designs Sale of merchandise Financial Assistance Continuing aid and guidance
Name 3 advantages and 3 disadvantages of Franchising
Advantage- Brand-name appeal, proven track record, financial assistance
Disadvantage- Franchise fees, Franchisor control, unfulfilled promises
Patents provide owner with
Exclusive rights to hold, transfer and license
Design Patents last for ______ years. All other patents last for_______.
14
20
Patents are not
Simply ideas
Trademarks are a
Distinctive name, mark, symbol or motto identified with a company
Trademarks Duration? May renew every how many years?
10 years
10 years
Debt financing
Securing financing of a new venture that involves a payback of the funds plus a fee
Equity Financing
Involves the sale of some of the ownership interest in the venture in return for an unsecured investment in the firm
Sole proprietorship Advantages and Disadvantages
Pros: Ease of Formation, Control, From from corporate business taxes
Cons: Unlimited liability, less available captial
Partnerships advantages and disadvantages
Pros: Ease of formation, Relative freedom from governmental control
Cons: Unlimited liability of at least one parter, bound by the acts of just one partner
Corporations Advantages and Disadvantages
Pros: Limited liability, Unlimited life
Cons: Regulation, double taxation
LLC offers
The limited liability of a corporation but the tax advantages of a partnership
