Wissen Flashcards
What is the Definition of Entrepreneurship?
Activity involving the discovery, evaluation, and exploitation of opportunities to create something new by mobilizing resources
Joseph Schumpeter on creative destruction
This process of creative destruction is a fundamental trait of capitalism
Why do people become entrepreneurs?
- Become rich
- Make a living (South America most answered)
- Make a difference
- Because of Family
additional: pandemic did boost entrepreneurial activity
The personality of an entrepreneur. Describe 4 points
- Dispositions to (re)act in a certain way across various situations
- High degree of stability over time
- Influenced (genetics, environment)
- Broad personality factors
What Personality Factors does an Entrepreneur have?
- Temperament
- Motives
- Attitude
- Believes
What is meant by Introversion? Whats the counterpart?
- reserved
- quite
- task oriented
Extraversion as counterpart
What is meant by Extraversion? Whats the counterpart?
- outgoing
- energetic
- loud
Introversion as counterpart
What is meant by Neuroticism? Whats the counterpart?
- Lack of self confidence
Emotional stability as counterpart
What is meant by Emotional Stability? Whats the counterpart?
- Even-tempered
Neuroticism as counterpart
What is meant by Antagonism? Whats the counterpart?
- self-centered
- skeptical
Agreeableness as counterpart
What is meant by Agreeableness? Whats the counterpart?
- friendly
Antagonism as counterpart
What is meant by Undirectedness? Whats the counterpart?
- Disorganized
Conscientiousness as counterpart
What is meant by Conscientiousness? Whats the counterpart?
- Organized
Undirectedness as counterpart
What is meant by Closedness? Whats the counterpart?
- Conventional
Openness to experience as counterpart
What is meant by Openness to experience? Whats the counterpart?
- Artistic
Clousedness as counterpart
What Motives exist in Terms of Entrepreneurial Personality?
- Need 4 Achievement
- Need 4 Autonomy
What is meant by Need 4 Autonomy?
Preference making decisions independently, own goals, avoidance of restrictions
What is meant by Need 4 Achievement?
Preference for high standards, desire for success, engagement in task-oriented behavioir
What is meant by Risk taking propensity?
It is the willingness to pursue decisions or course of action involving some risk to achieve high rewards
There is no deterministic relationship on success and entrepreneurial career
What does Affect trigger?
Affect -> Effects on basic cognitive processes -> Potential effects on key aspects of the entire process
e.g. opportunity recognition
How does Affect shape entrepreneurial cognition through?
Through
- Information processing
- Memory
- Coping w/ stress
What is meant by Information processing? Topic Affection
Positive affects triggers global perception and leads to heuristic and less carefull information processing
What is meant by Memory?
Mood is a file for information storage (mood congruent memory)
Recall is facilitated if mood is similar to encoding (mood-dependent retrieval)
What is meant by Coping w/ stress?
- Positive affect:
+ health benefits
+ immune system boost
+ bigger supporter network
What is meant by passion?
Enduring and intensive positive affect experienced while engaging in entrepreneurial activities
What is a Business opportunity?
B. O. is anchored in a product or service, which creates or adds value for its buyer or end user
What forces apply on Business opportunities?
- Knowledge
- Creativity
- Network
Changes in Environment
Name and describe 2 3D-Printing opportunities
Therics:
- Pill manufactur
- more efficient
2 Crop:
- Machine for architectual and industry prototypes
- Rapid
What is meant by Knowledge & Opportunity Identification in context with experience?
Prior experience determines the discovery of a particular opportunity
different experience = different opportunity
no experience = no opportunity
Which led to your Idea? Who said “yes”?
- Friends and family 46%
- potential customers 30%
- supplier/distributors 12%
- investors/lenders 8%
What increases the Odds of success? Name the factor
(4) parents in business -> 1.4
(3) encouragement by friends -> 1.9
(2) friends in business -> 2.0
(1) Member of a business network -> 4.4
What can you say about Knowledge and Creativity? How do they correlate?
Knowledge can be restricting in developing opportunities. Creativity is needed to overcome restrictions
What is meant by Creativity?
The generation of ideas, insights, or problems solution that are both novel and potentialy usefull
What three creativity methods exist?
- Conceptual Combination
- Analogical Reasoning
- Checklist Method
What is meant by Conceptual Combination?
Might be generated by mentally combining different, previously unrelated concepts.
e.g. affordable luxury
What is meant by analogical reasoning?
Getting the inspiration from nature
What is meant by Checklist Method?
Working through various points
How do opportunities emerge?
From a complex pattern of changing conditions. Changes IN PEST conditions. They come into existence at a given point in time cuz of a juxtaposition or confluence of conditions which did not exist perviously but is now present
Source of Opportunites, what to consider?
- Be aware and learn of PEST Changes
- Anticipate what consequences these changes will have
- Think of potential business opportunites
What is the business concept of beworm?
Selling know-how: Licensing Consulting Research
- > Segment 1: Polymer producer
- > Segment 2: Waste Management
Key Learnings from Guest Lecture Beworm?
- Follow your own path
- Keep biting
- Have fun
What can you say about Ideas and Opportunities
Ideas are essential but not sufficient for opportunities to emerge
Need to consider commercial viability, potential market demand profitability, competition and sustainability
Process of Ideas into Opportunities?
BI => Development Activities => BO
Whats meant by Risk and Uncertainty?
Risk: the probability of an outcome is possible to calculate or is knowable
Uncertainty: The Probability is not possible to determine or is unknowable
How does the opportunity development process look like?
- Continiuous process stoping and developming
- Feedback
- Refine,elaborate,change
- Different insights shape the raw idea into a valid opportunity
- Dont be afraid to change the idea
Gradual reduction of uncertainty surrounding the business idea
How does opportunity planning look like?
- Goal Setting: SMART
- Proactive action planning: Goals -> Subgoals
- Outcome of business planning
- Process of business planning
What kind of intensions exist?
- Goal Intention: “I need to achieve x”
2. Implementation intention: “Whenever Situation Y arises, i will do Z”
Decisions and entrepreneurs ?
Entrepreneurs are effectual decision-makers.
The expert entrepreneurs think in terms of control, not in terms of uncertainty
Principle 1: Start w/means
Causation: Start w/ desired outcome. Focus on means to generate the outcome
Effectuation: Start w/ resource. Selects among possible outcomes
Principle 2: Affordable Loss
Causation: Calculate upside potential and pursue the (risk adjusted) best opportunity
Effectuation: Calculate downside potential and risk no more than you can afford to lose.
Principle 3: Form Partnerships
C: Setup transaction relationships w/ customers and suppliers
E: Build your future together w/ customers, suppliers and even competitors
Principle 4: Leverage surprise
C: Avoid surprises
E: Surprises and even failures can represent new opportunities
Unique Ideas:
What stories do these guys have?
- Steve Jobs
- Ben and Jerrys
- Wolfe Bumble
- Caligraphy Course
- Jerry has no taste sense => Junks in ice cream
- Bumble: Hate Speech on twitter
Failure into opportunity, what examples do you know?
- Viagra
- Slack
- Post It
Effectuation in action! How do new market’s,firms or products arise?
- Means: Who am i, what can i do
- Goals: What can i do?
- Interact: With other people…. ow really
- Stakeholder commitments: New Means and New Goals
+. Change in Environment
=> New Firms, Products or Markets
Effectuation in action. What could go wrong?
No Commitment on Interaction => Dead End; Opportunity on hold
Changes in Environment => Constraints
Resource Acquisition in entrepreneurial context:
The acquisition and creative use of resources is crucial for entrepreneurs
Business Model Canvas, what does in Contain?
- Key activities
- Value propostions
- Customer relationships
- key partners
- cost structure
- customer segments
- key ressources
- distribution channels
- revenue stream
Barneys Key assumption
- Resource heterogenity: different firms process bundles of different resources
- Resource immobility: Some resources are inelastic in supply and costly to copy
Barney: Resources are the basic building blocks to a firm’s functioning and performance. What does he mean?
- They’re inputs into the production process
- They can be combined in different ways
- A bundle of resources provides a firm its capacaity to achieve superior performance
Barneys resource-based view as process:
Is the resource valuable?
- NO: Competitive disadvantage
- > YES: Is the resource RARE?
- NO: Competitive parity
- -> YES: Is the resource IMPERFECTLY INIMITABLE?
- NO: Temporary competitive advantage
- –> YES: Is the corp well ORGANIZED?
- NO: Unused competitive advantage
- —> YES: SUSTAINABLE COMPETITIVE ADVANTAGE
How can entrepreneurial manager obtain a resource bundle providing a sustained corp advantage?
Managers own unique exp and knowledge AND Input provided by new stakeholders = Valuable, rare, inimitable and organized resources
What does the entrepreneurial Manager must do:
- Influence
- Motivate
- Convince
- Inspire
… the business stakeholder
How to be an Entrepreneurial Manger? What does he have to do
- Communicate a strong Vision
- Ideal and unique image of future
- Positive, general and emotionally laden related to strong values
- Projected mental image of products, services and organization a leaders aspires to
What is persuation?
- Form of social influence
- Process: Guiding people toward the adoption of an idea, etc.
- Via Social influence tactics and psychology, communication style
Preparing the Discussion, what to do?
- Define Goal
- BATNA Identification
- Compare Goal and BATNA
During the Discussion, what to do?
- Achieve a compromise
- Bargaining tactics
- Central and peripheral uses to persuade
- Asking questions to guide the discussion
The other party’s position. What questions arise?
- What to achieve?
- What concerns?
- What is others BATNA?
Wtf is BATNA?
Best Alternative to a negotiated Outcome
Two routes of persuasion
Other party hast
LOW: peripheral route of persuasion
HIGH: central route of persuasion
Name and explain two Bargaining tactics:
Reciprocity: “Kinda repay”
- Door in face: Extreme Request and follow it up w/ a more reasonable one
- That not all folks: Increasing the offer or reducing the costs
Commitment and consistency: “Pressure to behave”
- Foot in the door: Escalating pattern of request
- Low-Balling: Inducements that are withdraw after a commitment is made
Key Learning on Negotiations
Never destroy your business relationship by being to manipulative
What is Sustainable Development?
Meets the needs of the present wo/ compromising the ability of future generations to meet their own needs
What does need to be sustained?
Nature
Life support
Community
What does need to be developed?
People
Economy
Society
What is Sustainable entrepreneurship?
preservation of nature, life support and community in the pursuit of opportunites to bring existence future products and services for profit, where profit is broadly constructed to include gains to people, the eco, and society
How does the Sustainable BMW look like?
Added Strategy Layer with Values and Mission, Targeted impact and beneficiary needs
Added Performance with financial costs, environmental costs, social costs, cost/benefit balance, revenue streams, enivornmental benefits and social benefits
What Growth strategies do you know? Explain on example HEAD.
Head: High quality skii manufacturer
- Penetration strat: Rise in marketing budget => Customers should upgrade to new stuff
- Market dev strat: Selling in EU/New Zealand/Argentina
- Product dev start: dev and set new products (hats, gloves)
- Diversification starts:
+ Backward Int: Design and manufacture of equipment used to make skies
+ Forward Int: Control of a chain of retail ski shops
+ Horizontal: Ownership of mountains
Name a social sustainable entrepreneurship:
Enactus
