Entrepreneurship Chapters 1-6

Process by which individuals pursue opportunities without regard to the resources they currently control

Definition 1 of entrepreneurship

Endeavoring to take on a new business venture under calculated risk

Definition 2 of entrepreneurship

salary-substitute firm

Firms that basically provide their owner or owners a similar level of income to what they would be able to earn in a conventional job

Lifestyle firm

Firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it

be their own boss, pursue their own ideas, and pursue financial rewards

What are the three main reasons people decide to become an entrepreneur?

salary substitute, lifestyle, entrepreneurial

What are the three types of start-up firms?

Millenials

What demographic desires an entrepreneurship career but does not have the resources to start one?

creativity, drive, willingness to take risks

What does entrepreneurial behavior require?

The process of starting a new business and a mindset

What is entrepreneurship in this class?

corporate entrepreneurship

behavioral orientation exhibited by established firms with an entrepreneurial emphasis that is proactive, innovative, and risk taking

false

true or false: according to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.

business model

A company's plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates.

product/customer focus

A defining characteristic of successful entrepreneurs that emphasizes producing good products with the capability to satisfy customers.

business plan

A written document that describes the nature of the business, its goals and objectives, and how they will be achieved.

to take advantage of an attractive opportunity

According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship:

passion for their business

An entrepreneur's belief that his or her business will positively influence people's lives; one of the characteristics of successful entrepreneurs.

moderate risk takers

Entrepreneurs who are often characterized as willing to assume a moderate amount of risk in business, being neither overly conservative nor likely to gamble.

execution intelligence

The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.

a passion for the business

The number one characteristic shared by successful entrepreneurs is

creative destruction

The process by which new products and technologies developed by entrepreneurs over time make current products and technologies obsolete; stimulus of economic activity.

Entrepreneurs are born, not made, entrepreneurs are gamblers, entrepreneurs are motivated primarily by money, entrepreneurs should be young and energetic, entrepreneurs love the spotlight

What are the five common myths regarding entrepreneurship?

Passion for the business, product/customer focus, tenacity despite failure, execution intelligence

What are the four main characteristics of a successful entrepreneur?

Innovative, risk taking, proactive

What are the three characteristics of entrepreneurial firms?

Innovation and job creation

What is the economic impact of entrepreneurial firms?

Step 1: Decision to become and entrepreneur Step 2: Developing successful business ideas Step 3: Moving from and idea to an entrepreneurial firm Step 4: Managing and growing an entrepreneurial firm

What is the entrepreneurial process?

45%

What percent of businesses survive five years?

12%

What percent of the U.S. population is starting a new business?

Women, minorities, seniors

Which demographics are changing in terms of becoming entrepreneurs?

salary-substitute

Which type of start-up firm is most common?

11.9

according to the global entrepreneurship monitor (GEM) 2015-2016 survey, about _____ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.

passion for the business, tenacity despite failure, product/customer focus, and execution intelligence

according to the textbook, the four characteristics of successful entrepreneurs are

lifestyle firms, salary-substitute firms, and entrepreneurial firms

according to the textbook, there are three types of start-up firms:

patience

according to the textbook, which is NOT a common characteristic of successful entrepreneurs? -tenacity -patience -product/customer focus -passion -execution intelligence

lifestyle firms

businesses that provide their owners the opportunity to pursue a particular lifestyle and earn a living while doing so

entrepreneurial firms

companies that bring new products and services to market by creating and seizing opportunities

Corporate Entrepreneurship

established firms with an orientation toward acting entrepreneurially practice this.

triggering event

event that prompts an individual to become an entrepreneur

Entrepreneurial firm

firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control

Business ethics and social responsibility, critical thinking, collaboration, data literacy

how does entrepreneurship facilitate career success?

value

relative worth, importance, or utility

salary-substitute firms

small firms that yield a level of income for their owner or owners that is similar to what they would earn when working for an employer

entrepreneurial intensity

the position of a firm on a conceptual continuum that ranges from highly conservative to highly entrepreneurial

entrepreneurship

the process by which individuals pursue opportunities without regard to resources they currently control

innovation

the process of creating something new, which is central to the entrepreneurial process

be their own boss, pursue their own ideas, and pursue financial rewards

the three primary reasons that people become entrepreneurs and start their own firms are to

entrepreneurs are tenacious

which of the following is NOT one of the five common myths about entrepreneurs? -entrepreneurs love the spotlight -entrepreneurs should be young and energetic -entrepreneurs are tenacious -entrepreneurs are born not made -entrepreneurs are gamblers

as high as 50 percent after four years

which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct? -as high as 80 percent after four years -as high as 50 percent after four years -as high as 90 percent after four years -as high as 70 percent after four years -as high as 60 percent after four years