Nature of Entrepreneurship II Flashcards
List some of the Variables in Entrepreneurship according to Gartner
Individual (Who)
Organization (What)
Environment (Where)
Process (How)
Describe the Individual variable of entrepreneurship according to Gartner
Personality Traits: Characteristics like risk tolerance, innovation, persistence, and need for achievement.
Motivations: Entrepreneurs may be motivated by a variety of factors, including financial success, independence, and the desire for achievement.
Skills and Knowledge: Prior experience, education, and skills play a significant role in how an entrepreneur identifies and pursues opportunities.
Demographic Factors: Age, gender, and socioeconomic background can influence an individual’s path to entrepreneurship.
Describe the Organization variable of entrepreneurship according to Gartner
Type of Business: The nature of the business (e.g., product-based, service-based, tech-oriented) significantly affects entrepreneurial behavior.
Business Structure: Startups, family-owned businesses, or franchises each require different entrepreneurial approaches.
Resources: Access to financial, human, and material resources is crucial in shaping the growth and survival of a new venture.
Strategies: The decisions entrepreneurs make regarding product development, marketing, and operational tactics are key to shaping the organization.
Describe the Environment variable of entrepreneurship according to Gartner
Market Conditions: The nature of the market (e.g., competition, customer demand, industry trends) directly affects entrepreneurial decisions.
Regulatory and Legal Framework: Laws, tax policies, and regulations can either hinder or facilitate entrepreneurship.
Economic Climate: The broader economic environment, including interest rates, inflation, and availability of capital, shapes the opportunities and challenges faced by entrepreneurs.
Support Networks: The availability of mentors, investors, and a supportive entrepreneurial ecosystem influences the chances of success.
Describe the Process variable of entrepreneurship according to Gartner
Opportunity Recognition: The process of identifying market gaps or unmet customer needs is a core aspect of entrepreneurship.
Business Planning: Entrepreneurs often develop business plans that outline strategies, financial projections, and operational processes.
Resource Mobilization: The ability to secure funding, recruit talent, and acquire necessary assets is essential to launching and growing a venture.
Execution: How entrepreneurs implement their vision, including marketing, sales, and product development, determines the success of the venture.
Outline the four basic success components in Gibb and Ritchie’s (1982) framework of the social dimension of the entrepreneurial process
Motivation and Determination
This factor refers to the drive of the entrepreneur and their group. Social support from family, partners, and networks, as well as a track record in previous efforts, play a role in pushing entrepreneurs to pursue their goals.
It also highlights that the entrepreneur’s objectives are often shaped by social influences.
Idea and Market
This component focuses on the viability of the business idea and its ability to meet market needs. It involves proving that the idea works and demonstrating how it is better than existing solutions.
Social aspects come into play through feedback from customers, the size of the target audience, and competition. Entrepreneurs are often shaped by the market needs and the social environment of potential customers.
Resources
The availability of physical and financial resources is crucial to starting a business. This includes premises, labor, equipment, and capital.
Social networks and relationships can influence access to these resources, such as raising funds or finding necessary inputs through social connections.
Ability
The abilities of the entrepreneur and their team (including family or partners) are vital for success. This includes technical skills, managerial ability, and knowledge gained from previous experiences.
Social factors play a role in terms of how skills are developed and shared within networks, and how entrepreneurs leverage their social capital for growth.
briefly describe some of the major entrepreneurial tasks (7):
1.Ownership
Refers to holding the legal rights and responsibilities of a business. Entrepreneurs who own their businesses are responsible for its overall success or failure, bearing the financial risk and reaping the potential rewards.
- Founding of Organizations
Involves the process of establishing a new business or organization. This task includes creating a business concept, legally registering the entity, assembling resources, and setting the groundwork for operations. - Bringing Innovations to the Marketplace
Entrepreneurs play a key role in introducing new products, services, or processes to the market. - Identifying Market Opportunities
This task involves recognizing gaps or unmet needs in the market that present potential for business ventures. Entrepreneurs use market research, consumer feedback, and industry trends to identify where new products or services could succeed. - Application of Expertise
Entrepreneurs often apply their specialized knowledge, skills, and experience to develop their businesses. Expertise in areas like technology, finance, or operations helps them make informed decisions and build competitive advantages. - Provision of Leadership
Entrepreneurs must lead their organizations by setting a vision, inspiring employees, and guiding strategic decision-making. - Management
Involves overseeing the day-to-day operations of the business, including planning, organizing, staffing, directing, and controlling resources to achieve the company’s objectives.
briefly describe some of the roles of entrepreneurs (5):
- Combination of Economic Factors
Entrepreneurs bring together various resources like land, labor, capital, and technology to create products or services that generate value and drive business growth. - Providing Market Efficiency
Entrepreneurs improve market efficiency by introducing products or services that better meet consumer needs, reducing inefficiencies in the supply chain, or creating more competitive pricing. - Accepting and Managing Risk
Entrepreneurs take on financial, operational, and market risks when starting and running a business. They invest their own capital and resources, facing uncertainty in exchange for the potential of future rewards. - Maximizing Investor Returns
Entrepreneurs are responsible for generating returns on the investments made by themselves or external investors. Their goal is to grow the business and provide a positive return on investment (ROI), ensuring that stakeholders benefit financially. - Processing Market Information
Entrepreneurs continuously gather, analyze, and respond to market information, including consumer trends, competitor activities, and economic conditions.
