Entrepreneurship 1 Final Exam Jumble

environmental scanning

a 3 step process in which businesses gather information about their surroundings, analyze that information and determine the future impact of that information

sales forecast

a prediction of what a firm's sales will be during a specific future time period

Delphi method

also called the "expert survey", is a variation of the jury of executive opinion, predictions are made secretly and then averaged together

feasibility study

an analysis of the viability of an idea, used to help answer the essential question: "should we proceed with the proposed project idea?"

What is a small business

any business that is operated by one or a few individuals, employs less than 100 people. represents 99.7% of all employers.

Quantitative forecasting

based on the results of gathering and analyzing all kinds of numerical market data

what are some reasons people decide to become entrepreneurs

being your own boss, doing something you enjoy, having the opportunity to be creative, freedom to set your own schedule, job security, making more money, being recognized within the community

what skills are needed for entrepreneurial success

communication, math, problem-solving, technology and computer, decision-making, organization and planning, teamwork, social, basic business, adaptability

What are some ways small businesses have contributed to society

contribute employment, pay taxes to government, help the flow of the economy, donations, some charitable institutions, sponsorship, welfare programs, advisers to respected government

stages of the entrepreneurial process

discovery- identifying opportunities, evaluation- analyzing and selecting the opportunity, and exploitation- launching and developing the enterprise

what are some reasons small businesses are flourishing

entrepreneurs come up with new ideas, do something that's never been done before, get venture capital funding, entrepreneurs can show creativity

product mix width

how many product lines are in one product mix

product mix length

how many products are in one product line

ways entrepreneurial venture is different from small business

innovation, risk, amount of wealth creation, speed of wealth creation

what are some reasons start-ups often fail

lack of control on the part of the entrepreneur, never total control of business or employees, mismanagement, high debt, resignation of staff, inadequate inventory, selling products below cost price, loss of market share, etc

product mix consistency

maintaining similar qualities in a product mix

Qualitative forecasting

or "judgmental" forecasting methods are based on expert opinion and personal experience

what are some personality traits that are associated with successful entrepreneurs

persistent, creative, responsible, inquisitive, goal-oriented, independent, risk-taking, action-oritented

a company's product mix has four different dimensions

product width, product mix length, product mix depth, product mix consistency

marketing mix

product, price, place, promotion

entrepreneurs must be able to:

recognize opportunity

marketing metrics

the business progress in measurable terms

What is an entrepreneurship

the process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business

entrepreneurial discovery

the process of systematically scanning for changes to discover opportunities to produce new goods or services (political change, technological, demographic, social)

product mix depth

the variety and number of products in a product mix

two approaches of forecasting a business must choose between

top-down ("breakdown" broken down into specific products) and bottom-up ("build up" starts with separate forecasts, then combined)

average market share

total sales volume / number of competitors in a given market

what are some risks and disadvantages of being an entrepreneur

working long hours, uncertain income, full responsibility, risking one's investment

why are inquiries important

(request for information) help you get assistance and information when you need it or it is helpful to people starting their own business

Professional development opportunities for entrepreneurs

SBA, Workforce Development Agencies, Chamber of Commerce, Community colleges, internet programs, mentor relationships

Sources of business start up information

Small Business Administration (SBA), Service Corps of Retired Executives (SCORE), Small Business Institute (SBI), Federal Trade Commission (FIC), Internal Revenue Service (IRS), Small Business Development Center (SBDC)