entr 101: exam two

opportunity identification

ability to recognize a viable business opportunity within a variety of good ideas

triple bottom line (tbl)

accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions

manipulation

an entrepreneur attempts to make changes in the external environment to achieve consistency between an organization and its environment

international alliances

another alternative available to the entrepreneur in the international arena, three main types of these strategic alliances: informal international cooperative alliances, formal international cooperative alliances (ICAs), and international joint ventures

marketability

assembling and analyzing relevant information about a new venture to judge its potential success

product availability

availability of a salable good or service at the time the venture opens its doors

failure prediction model

based on financial data from newly founded ventures; assumes the financial failure process is characterized by too much initial indebtedness and too little revenue financing

synthesis

basic type of innovation that involves combining existing concepts and factors into a new formulation

extension

basic type of innovation that involves extending the life of a product, service, or process already in existence

invention

basic type of innovation that involves the creation of a new product, service, or process that is often novel or untried

duplication

basic type of innovation that involves the replication of an already existing product, service, or process

licensing

business arrangement in which the manufacturer of a product (or a firm with proprietary rights over technology or trademarks) grants permission to a group or an individual to manufacture that product in return for specified royalties or other payments

importing

buying and shipping foreign-produced goods for domestic consumption

social value

contribution to the welfare or well-being in a given community

resource-rich countries

countries have something that others need, thus forming the basis of an interdependent international trade system

feasibility criteria approach

criteria selection list from which entrepreneurs can gain insights into the viability of their venture

european union (EU)

economic and political union of 27 member states, located primarily in europe

global entrepreneurs

entrepreneur who relies on global (international) networks for resources, design, and distribution

ecopreneurship

environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems

benefit corporation

exactly the same as traditional corporations except for a few specific elements that make them more socially sustainable enterprises: purpose, accountability, transparency

sustainable entrepreneurship

focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and noneconomic gains to individuals, the economy, and society

creative process

four phases of creative development: background or knowledge accumulation, incubation process, idea experience, and evaluation or implementation

creativity

generation of ideas that results in an improvement in the efficiency or effectiveness of a system

growth of sales

growth pattern anticipated for new-venture sales and profits

customer availability

having customers available before a venture starts

critical factors

important new-venture assessments

MICROiterations

in design-centered entrepreneurship it is iterating within each action stage to improve the outcome

MACROiterations

in design-centered entrepreneurship it is moving from one particular action stage back to a previous stage for further development

design-centered entrepreneurship

in essence, the entrepreneur applies design methods in four action stages of developing an opportunity: Ideation, market engagement, and business model

political risks

include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences

north american free trade agreement (nafta)

international agreement among canada, mexico, and the united states that eliminates trade barriers among the three nations

internal problems

involve adequate capital, cash flow, facilities/equipment, inventory control, human resources, leadership, organizational structure, and accounting systems

ecovision

leadership style for innovative organizations, encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands

b corporation

legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders, their performance standards enable consumers to support businesses that align with their values

social entrepreneurship

new form of entrepreneurship that exhibits characteristics of nonprofits, government, and businesses; it applies traditional (privatesector) entrepreneurship's focus on innovation, risk taking, and large-scale transformation to social problem solving

creation

new social context developed by an entrepreneur with new rules, norms, values, scripts beliefs, or models

conformance

new venture does not question, change, or violate the social structure but rather "follows the rules"

selection

new venture locating in a favorable environment

left brain

part of the brain that helps an individual analyze, verbalize, and use rational approaches to problem solving

right brain

part of the brain that helps an individual understand analogies, imagine things, and synthesize information

start-up problems

perceived problem area in the start-up phase of a new venture, such as lack of business training, difficulty obtaining lines of credit, and inexperience in financial planning

prototyping

physical representation of the venture that captures the essence of an idea in a form that can be shared with others for communication and feedback that closes the gap between concept and reality

innovation

process by which entrepreneurs convert opportunities into marketable ideas

technical feasibility

producing a product or service that will satisfy the expectations of potential customers

lean start-up methodology

provides a scientific approach to creating early venture concepts and delivers a desired product to customers' hands faster. It is hypothesis-driven and entrepreneurs must work to gather and incorporate customer feedback early and often

social impact investing

raising funds for socially motivated causes

stereotyping

refers to averages that people fabricate and then, ironically, base decisions on as if they were entities existing in the real world

external problems

related to customer contact, market knowledge, marketing planning, location, pricing, product considerations, competitors, and expansion

diaspora networks

relationships among ethnic groups that share cultural and social norms

probability thinking

relying on probability to make decisions in the struggle to achieve security

legitimacy

resource that enables new ventures to overcome the "liability of newness," allowing for the acquisition of other resources such as financial capital, human resources, and strategic relationships

lifestyle ventures

small venture in which the primary driving forces include independence, autonomy, and control

institutional logics

socially constructed, historical patterns of practices, assumptions, values, beliefs, and rules by which individuals provide meaning

pivot

structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth

comprehensive feasibility approach

systematic analysis incorporating external factors

design methodology

takes an initial concept idea and develops a proof of concept that elicits feedback from relevant stakeholders

minimum viable product (mvp)

the early version of the product that enables a full turn on the feedback loop with a minimum of effort

exporting

the shipping of a domestically produced good to a foreign destination for consumption, important for entrepreneurs because it often means increased market potential

growth stage

third stage of a new venture life cycle, typically involving activities related to reformulating strategy in the light of competition

shared value

transformation of business thinking recognizing societal weaknesses that create internal costs for firms (e.g., wasted energy, accidents, inadequacies in education)

world trade organization (wto)

umbrella organization governing the international trading system. Its job is to oversee international trade arrangements, but, contrary to popular belief, the WTO does not replace the General Agreement on Tariffs and Trade (GATT)

small profitable ventures

venture in which the entrepreneur does not want venture sales to become so large that he or she must relinquish equity or ownership position and thus give up control over cash flows and profits, which it is hoped will be substantial

functional perspective

viewing things and people in terms of how they can be used to satisfy one's needs and to help complete a project

high-growth venture

when sales and profit growth are expected to be significant enough to attract venture capital money and funds raised through public or private placements

joint venture

when two or more firms analyze the benefits of creating a relationship, pool their resources, and create a new entity to undertake productive economic activity

incongruities

whenever a gap or difference exists between expectations and reality