TOPIC 3: ENTREPRENEURIAL OPPORTUNITIES

Question 1

________is an apparent way of generating value through _____________________________________, and even processes that have not been previously exploited.

Answer 1

Opportunity
unique, novel, or desirable products, services

Question 2

Explain the three forms of values

Answer 2

Economic value: capacity to generate profit
social value: address a social need
environmental value: opportunity
protects or preserves the environment.

Question 3

Explain what is ideas

Answer 3

All ideas are not equal. Part of recognizing an opportunity is the ability to evaluate ideas and identify those with the highest likelihood of success

Question 4

One framework for doing this is to rate an idea on four different dimensions:

Answer 4

innovation, an invention, an improvement, or irrelevant.

Question 5

Of these, __________ and __________ are high in novelty, while _________and _______ideas are low in novelty.

Answer 5

innovations, inventions
improvements, irrelevant

Question 6

__________ by definition, score highly for novelty; but if an does not reach the market or appeal to consumers

Answer 6

Inventions

Question 7

Inventions that succeed in finding
a market move to the __________ stage.

Answer 7

innovation

Question 8

Innovations and inventions are often paired together, but the difference between them lies in ___________.

Answer 8

demand

Question 9

Ideas do not always need to be unique or novel to appeal to customers. There are many ideas that focus on ___________.

Answer 9

improvement

Question 10

There are ideas that fall into the ________ category, scoring low on both novelty and usefulness.

Answer 10

irrelevant

Question 11

Making an idea a reality is a process that involves ______, __________, ____________, and a great deal of
_________, which can seem a little daunting to many of us.

Answer 11

time, resources, commitment, and work

Question 12

Researchers have defined many formal methods of idea generation. Out of these, we have chosen seven main strategies that we believe are effective in the generation of new ideas for entrepreneurs. They include the following:

Answer 12

Analytical strategies
Search strategies
Imagination-based strategies
Habit-breaking strategies
Relationship-seeking strategies
Development strategies
Interpersonal strategies

Question 13

________involve taking time to think carefully about a problem by breaking it up into parts or looking
at it in a more general way to generate ideas about how certain products or services can be improved or made more innovative.

Answer 13

analytical strategies

Question 14

_________involve using memory to retrieve information to make links or connections based on past experience that are relevant to the current problem using stimuli.

Answer 14

search strategies

Question 15

________involve suspending
disbelief and dropping constraints to create unrealistic states, or fantasies.

Answer 15

imagination-based strategies

Question 16

_________are techniques that help to break our minds out of mental fixedness to bring about creative insights.

Answer 16

habit-breaking strategies

Question 17

___________involve consciously making links between concepts or ideas that are not
normally associated with each other.

Answer 17

relationship-seeking strategies

Question 18

___________are employed to enhance and modify existing ideas to create better alternatives and
new possibilities.

Answer 18

development strategies

Question 19

____________ in which group members collaborate to come up with new or improved ideas.

Answer 19

interpersonal strategies

Question 20

___________ a concept that assumes that opportunities exist independent of entrepreneurs and are waiting to be found.

Answer 20

finding approach

Question 21

The finding approach views decisions as___________

Answer 21

risky

Question 22

____________a concept that assumes that opportunities do not exist independent of
entrepreneurs but are instead a product of the mind.

Answer 22

building approach

Question 23

Differentiate the finding approach and building approach based on
a. Origin of Opportunities
b.Assumptions
c. Methods of Identification
d. Role of the Entrepreneur
e. Decisions

Answer 23

Building Opportunities
a. Origin of Opportunities
Finding: Changes in technology, markets, consumer tastes, government regulations, demographics
Building: Prior knowledge and experience

b. Assumptions
Finding: The opportunity exists and is waiting to be identified
Building: Opportunities don’t exist until they are created

C.Methods of Identification
Finding: Search and scan the environment
Building: Build networks

D. Role of the Entrepreneur
Finding: Be alert to changes in the environment
Building: Take action; continuous learning and iteration

E.Decisions
Finding: Perceived as risky
Building: Perceived as uncertain

Question 24

_______________ is one of the key influences of opportunity identification.

Answer 24

Access to the right information

Question 25

In the finding approach, entrepreneurs often engage in _____________ to discover existing opportunities.

Answer 25

active search

Question 26

This implies, in accord with the
finding approach, that the opportunity is already present in the environment and can be discovered through a __________ search.

Answer 26

systematic

Question 27

Such discovery is made by those
entrepreneurs who have _________, the ability to identify opportunities in their environment. T

Answer 27

alertness

Question 28

Some researchers believe that entrepreneurs may be more adept at spotting opportunities than nonentrepreneurs for several reasons:

Answer 28

-they have access to more information,
-they may be more prone to pursuing risks rather than avoiding them, and
-they may possess different cognitive styles from those of non-entrepreneurs

Question 29

____________are ways in which people solve problem

Answer 29

Cognitive strategies

Question 30

__________are ways and patterns of thinking

Answer 30

cognitive sytles

Question 31

Cognitive styles attributed to successful entrepreneurs include a higher degree of ________, _______, and ___________

Answer 31

intelligence, creativity and self-efficacy

Question 32

Researchers have identified two major factors in the building of opportunities:

Answer 32

prior knowledge and pattern
recognition.

Question 33

__________ is preexisting information gained from a combination of life and work experience

Answer 33

Prior knowledge

Question 34

______________: the process of identifying
links or connections between apparently unrelated things or events. Pattern recognition takes place when people “connect the dots” in order to identify and then build on opportunities.

Answer 34

Pattern recognition

Question 35

In __________, pattern recognition is thought to be one of the ways in which
we attempt to understand the world around us.

Answer 35

Cognitive science

Question 36

Typically, entrepreneurs go
through three processes before they are able to identify an opportunity for a new business venture:

Answer 36

Idea generation, creativity, opportunity recognition

Question 37

Finally, the ________________________ stage allows us to sort out the remaining
ideas for both newness and usefulness, and also assess them for their ability to generate economic value.

Answer 37

opportunity recognition

Question 38

Production of ideas for something new.

Answer 38

Idea generation

Question 39

Production of ideas for something new that is also potentially useful

Answer 39

Creativity

Question 40

Recognition that ideas are not only new and potentially useful, but also have the potential to generate economic value

Answer 40

opportunity recognition

Question 41

Researchers have identified four approaches that we can practice to enhance our creativity with the purpose of transforming our ideas into opportunities.

Answer 41

SEEC: securing, expanding,
exposing, and challenging

Question 42

the capacity to focus
on and sustain new ideas.

Answer 42

securing

Question 43

broadening or acquiring new skills

Answer 43

expanding

Question 44

opening ourselves to circumstances and events

Answer 44

exposing

Question 45

overcoming past failures by braving new
encounters

Answer 45

challenging

Question 46

Similar to alertness, _________ involves being consciously aware of possibilities, but also focuses on the deliberate capture of those ideas that sometimes have a habit of drifting in and out of our minds before we have a chance to focus on them. A useful way of securing those ideas is to
keep a written log of opportunities that you observe during your daily activities, which is a simple but effective way to record ideas for later use.

Answer 46

securing

Question 47

_________skills enables people to generate ideas and share knowledge. A useful exercise carried out in a group setting is to list recent problems you have encountered in your daily life and design some possible solutions, which are then shared with the class for further discussion and feedback.

Answer 47

expanding

Question 48

Entrepreneurs tread a fine line between structure and turbulence, and so it is useful to build resilience by ____________ ourselves to diverse and fluctuating circumstances and events. This exposure builds our ability to function in an
unstructured and uncertain environment. Brainstorming and becoming a consumer of information about creativity are productive ways of building exposure.

Answer 48

exposing

Question 49

We all fail at times, and the important thing is not how often we fail but how well we recover. Further, we must not let past failures stop us from ________ ourselves to make new efforts and try new things. Learning from failure can lead to enhanced creativity and further idea identification.

Answer 49

challenging