85 terms

Entrepreneurship Exam 1

% of americans that are actively engaged in starting a business/are the manager/owner of a business that is less than 3 years old
# of entrepreneurship courses offered in 2/4 year colleges/universities in the US
pursue, resources, academic
entrepreneurship is the process by which individuals ______opportunities w/out regard to _____ they currently control (______ definition)
art, idea, business, venture capitalist
entrepreneurship is the ___ of turning an ____ into a _____ (______ definition)
assemble, integrate, invention, viable
entrepreneurs ______ and then _____ all resources needed ($, ppl, biz model, strategy) to transform an ____/idea into a ____ business
corporate entrepreneurship
the conceptualization of entrepreneurship at the firm level (all firms fall along the conceptual continuum that ranges from highly conservative to highly entrepreneurial)
_____ firms are proactive, innovative & risk taking
_____ firms take a more "wait & see" posture, are less innovative & risk adverse
passion, product, execution, tenacity
characteristics of successful entrepreneurs:
-____ for the business
-____/customer focus
-_____ intelligence
-_____ despite failure
passion for the business
#1 characteristic shared by successful entrepreneur
passion for the business
characteristic of successful entrepreneur that stems from the entrepreneurs belief that the business will positively influence people's lives
characteristic of successful entrepreneur of product/customer focus stems from the fact that most entrepreneurs are, at heart, ______
execution intelligence
the ability to fashion a solid business idea into a viable business
born, made, gamblers, money, young, energetic
myths... entrepreneurs:
-are ____, not ____
-are _____
-are motivated by _____
-should be ____ & _____
achievement, opportunities, work ethic, moderate, lengthy, optimistic, confident, ambiguity
characteristics/common traits:
_____ motivated
alert to _______
strong ____ ____
____ risk taker
_____ attention span
_____ disposition
resource assembler
tolerant of _____
structured, uncertain, achieve
the idea that entrepreneurs are gamblers originates from 2 sources:
-they typically have jobs that are less ______, so face more ____ set of possibilities
-have strong need to ____ & set challenging goals which is a behavior equated w/ risk taking
distracting, rarely
some entrepreneurs warn that the pursuit of money can be ______ & it is ____ the reason to start a new firm
most active age for business ownership is ____-____ years old
maturity, reputation, success, older
the "strength" of an entrepreneur in the eyes of an investor is experience, ______, a solid _____ & a track record of ____ (favoring ____ entrepreneurs)
small, similar
salary-substitute firms are ____ firms that provide their owner(s) a ____ level of income to what they would be able to earn in a conventional job
____ firms offer common, easily available products (dry cleaners, restaurants, retail stores)
lifestyle, not, slowly
life-style firms provide their owner(s) the opportunity to pursue a particular _____ & make a living at it (___ innovative, grow _____)
____ firms examples are ski instructors, golf pros, tour guides
new, resources, control
entrepreneurial firms bring ____ products/services to market by creating & seizing opportunities regardless of the _____ they currently ____
_____ firm examples are google, apple, ebay
6.2, 20
# million women owned businesses in 2002 (up ___% from 1997)
18, 10
__% businesses owned by minorities in 2002 (up __% from 1997)
7/10, 2000
according to a Gallop study, __/__ high school students want to start their own business (over _____ 2/4 year colleges offer entrepreneurship classes)
2, innovate, specialized tasks
job creation; in the past __ decades, economic activity has moved towards smaller firms, which may be due to their ability to ____ and focus on _____ ___
innovation; small firms are ____ times as innovative per employee
society, firms
entrepreneurial firms impact ____ & larger _____
dramatic, easier, productivity, health
entrepreneurial firms have a ____ impact on society; w/ new innovations that make our lives, enhance our ___ at work, improve our ____ and entertain us
entrepreneur, business idea, move, idea, firm, managing
entrepreneurial process:
1-decide to become an _____
2-develop successful _____ ___
3-___ from ____ to entrepreneurial ___
4-_____ & growing the entrepreneurial firm
which step is "decide to become an entrepreneur"?
which step is "develop successful business idea"?
which step is "moving from an idea to an entrepreneurial firm"?
which step is "managing & growing the entrepreneurial firm"?
a favorable set of circumstances that creates a need for a new product, service or business
attractive, timely, durable, anchored
4 essential qualities of an opportunity
A____, T_____, D______ and A______
trends, solving, problem, gaps, marketplace
3 ways to identify an opportunity
- observe _____
- _____ a _____
- find ___ in the ____
solving a problem
The US finding alternatives to fossil fuels and entrepreneurial firms, like wind farms, are being launched to do so is an example of which approach to identifying opportunities
finding gaps in the marketplace
Daisy Rock Guitars, started by Tish Cirovolv in 2000 when she realized there were no guitars on market for women, is an example of which approach to identifying opportunities
industry, cognitive, networks, creativity
characteristics of entrepreneurs that make them better at recognizing opportunities:
- prior ______ experience
- ____ factors
- social _____
- c_______
prior industry experience
2 waiters at Chili's starting Outback Steakhouse is an example of which characteristic of an entrepreneur that makes them better at recognizing opportunities
innate, cognitive
studies show that opportunity recognition may be an _____ skill or ______ process
entrepreneurial alertness
the "6th sense" some people have that is the ability to notice things w/out engaging in a deliberate search
in a survey of 65 startups, ___ the founders reported their business idea came through social contracts
____ tie relationships are characterized by frequent interaction & form between coworkers, friends & spouses
(like-minded, reinforce ideas)
____ tie relationships are characterized by infrequent interaction & form between casual acquaintances
(not like minded, ppl spark new ideas)
type of relationship that leads to more new business ideas
the process of generating a novel or useful idea (a characteristic of an entrepreneur that helps recognize opportunities)
preparation, incubation, insight, evaluation, elaboration
5 steps to generating creative ideas:
awareness, characteristics
the opportunity recognition process depicts the connection b/w an _____ of emerging trends & personal _____
opportunity recognition
Environmental Trends (economic, social, tech, political)
+ Personal Characteristics (prior experience, cognitive factors, social networks, creativity)
=> business, product, or service opportunity gap (difference between what's available & what's possible)
-> new business, product & service ideas
the ____ ____ process
technique used to generate a large # of ideas & solutions to problems quickly
a focus group is a gathering of __-__ ppl who have been selected based on their common characteristics relative to discussed issues
focus group
the most expensive type of study to generate ideas
underutilized technique for generating ideas
regularly, new ideas
customer advisory boards are set up by some companies and meet ____ to discuss needs, wants & problems that may lead to ___ __
anthropological, day, customer
day in the life research is a type of _____ research where the employees of a company spend a ___ with a _____
tangible, date, secured, voluntary, exclusive
in order to protect ideas from being lost/stolen:
step 1: put idea into ______ form w/ __
step 2: idea should be _____
step 3: avoid making inadvertent/______ disclosure, in a manner that forfeits the right to claim ____ rights to it
feasibility analysis
the process of determining whether a business idea is viable (the preliminary evaluation of a biz idea, conducted to determine whether the idea is worth pursuing)
early, before, resources, spent
the proper time to conduct a feasibility analysis is ____ in thinking through the prospects for a new biz (screen ideas ____ alot of ____ are ____ on them)
feasibility analysis
components of a ____ ____
2-Industry/target market
appeal, customers
the purpose of a product/service (1) feasibility analysis is to assess the overall ___ of the product/service being proposed before prospective firm rushes into development, make sure it is what _____ want
desirability, demand
2 components of product/service feasibility analysis (2 D words)
desirability, concept test
when determining the product/service ______;
FIRST ask questions to find the basic ___ of product/service (make sense? reasonable? any fatal flaws? solve problem?)
THEN administer a _____ ___
concept test
a 1 page description of a business, distributed to people who are asked to provide feedback on the potential of the biz idea
-gives sense of viability/suggestions to strengthen/tweak b4 proceeding (2nd step in determining the product/service desirability w/in the feasibility analysis)
demand, buying intentions, gumshoe
when determining the product/service ______;
FIRST administer a _____ ____ survey
THEN do lib, net & ____ research
interest, concept, short
a buying intentions survey is an instrument used to gauge customer _____, consisting of a ____ statement w/ a ____ survey (1st step in determining product/service demand w/in the feasibility analysis)
gumshoe, detective, clues, time
____ research is a ___/investigator that scrounges around for info/____; ask ppl what they think about product/service idea, costs ____
hitting the streets and talking to potential customers is 1 of the most ____ things you can do to conduct thorough feasibility analysis
the purpose of the industry/target market (2) feasibility analysis is to assess the overall ____ of industry/target market for proposed biz
varies, young, early, fragmented, must haves, want to haves, not, high, dependent, low, in favor, against
industry attractiveness ____, w/ most attractive industries being ____,___ in life cycle, _____ rather than concentrated, growing, sell "____ ____" rather than "____ ___ ___", ___ crowded, ___ operating margins & not highly ____ on historically __ price of key raw material
*the degree to which enviro/biz trends are moving ____ rather than ____ the industry
harder, big, small, bigger
target market attractiveness is _____ to assess than that of the industry, want to find market that is ___ enough for proposed biz, but ____ enough to avoid attracting ____ competitors
management, competence, launch, non-financial
the purpose of the organizational (3) feasibility analysis is to determine if proposed biz has sufficient ____ expertise, organizational ______ & resources to successfully ____ (focus is on ________ resources)
prowess, sufficiency
2 things to assess when competing an organizational feasibility analysis are management _____ & resource ____
management prowess
the _____ ____ is the ability of the management team to satisfy itself that management has requisite passion & expertise to launch the new venture
passion, markets, participate
2 factors in assessing the management prowess are the _____ the entrepreneur/founding team has for the biz idea & the extent to which they understand ___ in which firm will _____
resource sufficiency
the ___ _____ is an assessment of whether an entrepreneur has sufficient resources to launch the proposed venture
6-12, nonfinancial
to test the resource sufficiency, a firm should list __-__ most critical _______ resources that will be needed to move biz idea forward successfully
office/lab, support, labor pool, proximity, willingness
examples of non-financial resources are:
-availability of affordable ____/___ space
-_____ of local/state gov't support
-quality of ____ ___ available
-____ to key suppliers/customers
-____ of high quality employees to join firm
total, cash, similar, attractiveness
the financial feasibility analysis (4) looks at 3 things:
- ____ start-up ___ needed
- financial performance of ____ biz
- overall financial _____ of proposed venture
first sale, budget, capital, operating, realistic
total start-up cash needed refers to all cash that will be needed to prepare the biz to make its __ ___
--a ____ should be prepared listing the anticipated ____ purchases & ____ expenses
--point is to determine if venture is ___ given total startup cash needed
ethical, reports, free, observational, average
the estimation of the proposed startups financial performance involves ___ detective work
--there are ___ available (some __)
--____ research by tracking # of ppl who patronize similar places & estimating ___ amount spent