Chapter 4-ENTR-202: Small Business Ideas: Creativity, Opportunity, and Feasibility

______ strategy is an overall strategic approach in which the entrepreneur does more or less what others are already doing.

Imitative

The ______ section of the business model canvas describes the most important actions that are central to making the firm successful.

key activities

______ is the process of producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities.

Creativity

____ involves searching and capturing new ideas that generate business opportunities.

Opportunity Recognition

In the ___ ____ of entrepreneurship, individuals need to think about what they need to do to bring their new product or service into existence. (Enter one word in each blank.)

Causal Model

Model of entrepreneurship

1. Feel 2. Check 3.Plan 4. Do

Which of the following is a practice that can create an innovative frame of mind?

Ask customers what problems they cannot solve on their own. Invite new people to a problem-solving meeting. Regularly scan the environment and discuss trends and events that could affect the business.

In the context of the IDEO screen, in which of the following elements should new ideas be high?

Business viability Technical feasibility Market desirability

When one is taking a causal approach to start a new business, which of the following are examples of sources of ideas? (Check all that apply.)

Chance: Being at the right place at the right time. Idea websites Education or expertise: Applying what was learned in school or developed on own

____ involves having a special set of observational and thinking skills that helps businesspersons identify good opportunities.

Entreprenurial Alertness

______ strategy is taking an idea and offering a way to do something slightly better than it is presently done.

Incremental

Which of the following are true of entrepreneurial alertness?

It includes the ability to notice things that have been overlooked. It includes the motivation to search for opportunities.

Which of the following are true of entrepreneurial alertness?

It includes the motivation to search for opportunities. It includes the ability to notice things that have been overlooked.

Which of the following is true of opportunity recognition?

It involves creative thinking that results in the discovery of novel and useful ideas.

In the context of screening ideas, which of the following is true of the IDEO screen?

It is a technique for performing a rapid initial analysis of ideas to determine their potential.

Which of the following statements about the business model canvas are true?

It is an analytic tool used in developing a start-up that would appeal to customers, compete well, and earn a profit. It is a great way to identify and organize key information about a business and how it will achieve its goals. It consists of 11 factors such as value proposition, key partners, and revenue streams.

Which of the following is true of the term "gain" in the context of the business model canvas approach?

It is one of the two driving forces to create new services or products.

Which of the following statements about feasibility are correct?

It is the extent to which an idea is viable and realistic. The two main ways of examining feasibility are the business model canvas process and the classic feasibility study. It is the next-step process after the IDEO screen.

Which of the following statements about the feasibility study are correct?

One should examine the strengths and weakness of each opportunity within each of the five areas. The areas consist of: the business idea, product/service, industry and market, financial projections, and plan for future action. It evaluates the potential of a business opportunity by investigating five primary areas.

A ______ can be any problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face.

Pain

Which of the following are pitfalls that entrepreneurs may fall victim to when attempting to become more innovative?

Stopping with the first good idea Failing to act Obeying rules that don't exist

Which of the following statements about the customer segments section of the business model are correct?

There is often more than one type of custom segment. Customer segments build from the IDEO screen work-up. Each customer segment usually has its own problem and value proposition.

Which of the following are true of the effectuation model of entrepreneurship?

This approach requires entrepreneurs to talk to people they know to determine if these people can commit to the entrepreneurial ideas. This approach involves entrepreneurs starting out with the skills, knowledge, and networks they possess.

The ______ portion of the business model canvas has to do with how the business will get its product or service to the customer.

channels

The ______ section of the business model canvas describes how the business will best care for its most valuable resource.

customer relationships

A ______ is a group or subgroup of potential purchasers that can be approached in a coherent manner.

customer segment

A customer-focused approach using interviews, observation, and exercises to create services and products that provide demonstrated evidence of solving customers' problems is called

design thinking

A ______ evaluates the potential of a business opportunity by investigating five primary areas: the business idea, product/service, industry and market, financial projections, and plan for future action.

feasibility study

A(n) ___ is any kind of outcome customers or potential customers would like to encounter or be able to depend on.

gain

The customer relationships section of the business model canvas describes

how the business will best care for its most valuable resource.

The revenues section of the business model canvas describes

how the business will earn profits solving its customers' problems or pains.

The value proposition section of the business model canvas

is the small business owners' unique selling points or benefits that customers can expect from the goods or services.

The ______ section of the business model canvas focuses on the pain to be solved and potential gain customers will benefit from.

problem

One way to think about opportunities and business creation depends on an individual's dreams or ideas about new or yet-to-be-created products or services. This is referred to as the _____.

radical innovation

A radical innovation strategy is

rejecting existing ideas, and presenting a way to do things differently.

The ______ section of the business model canvas describes how the business will earn profits solving its customers' problem or pain.

revenues

The ______ section of the business model canvas focuses on how the business plans to handle the problem-solving pains or create gains for its customers.

solution

The ______ section of a business model canvas is the business' unique selling points or benefits that customers can expect from the goods or services, including benefits that differentiate the business' offerings from its competitors.

value proposition

The key resources section of the business model canvas describes

what the business has that other firms do not.

A(n) ______ strategy is rejecting existing ideas, and presenting a way to do things differently.

Radical Innovation

Which of the following are recommended techniques for practicing innovation?

Reading trade journals outsides one's industry. Try a mini-internship. Redesign the work environment.

Which of the following statements about the business' channels for the business canvas are correct?

Selling through an intermediary can be less expensive, but how will the business be heard and seen by its customers. It should describe how the product or service will be delivered to the customer. Selling directly to the customer allows the business to control the process, but it is often more expensive and harder to get started.

Which of the following statements about the entrepreneurial process are correct?

The order of the process is feel, check, plan, and do. Some of the opportunities may already exist, just not in his or her community. An entrepreneur's alertness is at work when he or she feels there are possibilities.

Which of the following was not described as a source of business ideas?

Assignment given to employee by boss

______ is the extent to which an idea is viable and realistic and the extent to which the entrepreneur is aware of internal and external forces that could affect the business.

Feasibility

The solution section of the business model canvas focuses on how _____.

the business plans to handle the problem-solving pains or create gains for its customers

The key activities section of the business model canvas describes

the most important actions that are central to making a firm successful.

Which of the following are pitfalls that business can experience when attempting to become more innovative?

Identifying the wrong problem. Stopping with the first good idea. Judging ideas too quickly.

The ______ is a way to identify and organize key information on a business and how it achieves its goals.

business model

Incremental strategy is

taking an idea and offering a way to do something slightly better than it is presently done.

Which of the following statements about the key partners section of the business model canvas are correct. (Check all that apply.)

Well-regarded suppliers that provide raw materials and partners that provide advice inspire confidence in the customer's eyes. Attorneys, accountants, and advisory board members are other examples of key partners. Most small companies rely on individuals and organizations to help develop the business deliver on its promise in its value proposition.