reviewer Flashcards
What leads to the identification of entrepreneurial opportunities?
The creation of entrepreneurial ideas
This process results in the opening of an entrepreneurial venture.
What are the three essentials in an entrepreneur’s opportunity seeking?
- Entrepreneurial mind frame
- Entrepreneurial heart flame
- Entrepreneurial gut game
Define ‘Entrepreneurial mind frame’.
The ability to see things positively and optimistically in difficult situations.
What does ‘Entrepreneurial heart flame’ refer to?
The driven passion of an entrepreneur to discover satisfaction in the act and process of discovery.
What is meant by ‘Entrepreneurial gut game’?
The ability of the entrepreneur to be intuitive and confident in their aspirations.
List some sources of opportunities for entrepreneurs.
- Changes in the environment
- Technological discovery and advancement
- Government’s thrust, programs, and policies
- People’s interest
- Past experiences
How can changes in the external environment lead to entrepreneurial ideas?
They create opportunities that an entrepreneur can view positively.
What is included in the physical environment as a source of entrepreneurial ideas?
- Climate
- Natural resources
- Wildlife
What are the components of the societal environment?
- Political forces
- Economic forces
- Sociocultural forces
- Technological environment
What are the five forces of competition in an industry environment?
- Buyers
- Potential new entrants
- Rivalry among existing firms
- Substitute products
- Suppliers
True or False: Buyers have a strong bargaining power when there are many suppliers available.
False
The bargaining power of buyers is lessened with multiple suppliers.
What factors can decrease the threat of potential new entrants?
- Substantial capital requirement
- Strict government policy
- Difficulty in accessing distribution channels
- Economies of scale
- High switching cost
What determines the intensity of rivalry among existing firms?
- Diversity of rivals
- Number of competing firms
- Characteristics of the products or services
- Increased capacity
- Amount of fixed costs
- Rate of industry growth
Fill in the blank: A substitute product is anything that takes the place or function of another, such as _______.
[margarine for butter]
What can increase the threat of suppliers in an industry?
- Ability for forward integration
- Few suppliers with high sales volume
- Lack of readily available substitute products
- High switching cost
- Unique product or service
