Entrepreneurship

How can corporate thinking be restructured to encourage an entrepreneurial environment?

1. Early identification of potential innovators 2. top-management sponsorship of innovative projects 3. creation of innovation goals in strategic activities 4. promotion of entrepreneurial thinking through experimentation 5. collaboration between innovators and the org

What does sustainable entrepreneurship include?

1. Ecopreneurship 2. Social entrepreneurship 3. Corporate social responsibility

What does creation of a sustainable enterprise involve?

1. Emergence of the opportunity 2. Emergence of the venture 3. Emergence of the entrepreneur All three define and are defined by one another

What are ten rules an innovative environment?

1. Encourage action 2. Use informal meetings whenever possible 3. Tolerate failure, and use it as a learning experience 4. Persist in getting an idea to market 5. Reward innovation for innovation's sake 6. Plan the physical layout of the enterprise to encourage informal communication 7. Expect clever bootlegging of ideas-secretly working on new ideas on new ideas on company time as well as on personal time. 8. Put people on small teams for future-oriented projects 9. Encourage personnel to circumvent rigid procedures and bureaucratic red tape. 10. Reward and promote innovative personnel

What are the 10 myths of entrepreneurship?

1. Entrepreneurs are Doers, Not Thinkers 2. Entrepreneurs are born, not made 3. Entrepreneurs are always inventors 4. Entrepreneurs are Academic and social misfits 5. Entrepreneurs must fit the profile 6. All entrepreneurs need is money 7. All entrepreneurs need is luck 8. Entrepreneurship is unstructured and chaotic 9. Most entrepreneurial initiatives fail 10. Entrepreneurs are extreme risk takers

What schools of thought make up the macro view on entrepreneurship?

1. Environmental (most broad) 2. Financial/Capital 3. Displacement

What should companies that embrace corporate entrepreneurship do?

1. Establish flexibility 2. remove barriers to more closely align personal and organizational initiatives 3. include ethical component to corporate training

What are the three major elements of a strategy for ethical responsibility?

1. Ethical consciousness 2. Ethical process and structure 3. Institutionalization

What are the 4 types of risks entrepreneurs face?

1. Financial risk 2. Career risk 3. Family and social risk 4. Psychic risk

What are some disadvantages of franchises?

1. Franchise fees 2. control exercised by franchisor 3. unfulfilled promises by some franchisors

Why does unethical behavior take place?

1. Greed 2. Distinctions between activities at work and at home 3. Lack of foundation in ethics 4. Survival (bottom line thinking)

What are 3 ethical considerations?

1. In smaller business, it is easier to control the ethics of the company 2. introduction of feminist ideology 3. an owners value system is often representative in their decision-making

What are the four stages of evaluating a venture by the VC?

1. Initial screening 2. Evaluation of the business plan 3. Oral presentation 4. Final evaluation

What factors in large corporations have lead to successful innovations?

1. Innovative atmosphere 2. Orientation to the market 3. Small, flat organizations 4. Multiple approaches 5. Interactive learning 6. Skunk works-group that works outside normal organization

What are the pitfalls in assessing entrepreneurial opportunities?

1. Lack of objective evaluation 2. No real insight into the market 3. Inadequate understanding of technical requirements 4. Poor financial understanding 5. Lack of venture uniqueness 6. Ignorance of legal issues

What are some differences between laws and morals?

1. Laws can have no moral content or are morally unjust 2. Some moral standards have no legal basis 3. Legal requirements tend to be negative, whereas morality tends to be positive 4. legal reqs lag behind acceptable moral standards of society

What are the three classifications most ventures fit into?

1. Lifestyle ventures-focus on providing a sufficient and comfortable living for the entrepreneur 2. Small profitable ventures 3. High growth ventures

What are some of the types of equity financing?

1. Loan with warrants 2. Convertible debentures 3. Preferred Stock 4. Common stock

What are six ways entrepreneurs can deal with stress?

1. Networking 2. Getting away from it all 3. Communicating with employees 4. Finding satisfaction outside the company 5. Delegating 6. Exercising rigorously

What is the entrepreneur ego?

1. Overbearing need for control 2. Sense of distrust 3. Overriding desire for success 4. Unrealistic Optimism

What factors should be considered when acquiring a firm?

1. Personal preferences of entrepreneur 2. Examination of opportunities 3. Evaluation of selected venture 4. Key questions to ask

What are the traditional methodologies for evaluation of a firms viability?

1. Profile analysis approach 2. feasibility criteria approach 3. comprehensive feasibility approach

What are some of the concerns of crowdfunding?

1. Reputation 2. IP protection 3. Donor dilution 4. Public fear-likelihood of a scam or abuse of funds is high

What are the two forms of crowdfunding?

1. Rewards Crowdfunding-no equity is shared, entrepreneur provides incentive/gift for donation 2. Equity crowdfunding-entrepreneur purchases equity

What are the six modules of the corporate innovation training program?

1. The entrepreneurial experience 2. Innovative thinking 3. Idea acceleration process 4. Barriers and facilitators to innovative thinking 5. Sustaining innovation teams 6. The innovation action plan

In the strategic formulation school, what are the elements of strategic formulation?

1. Unique markets: Mountain vs. Mountain gas strategies 2. Unique people, great chef strat 3. Unique products, better widget strat 4. Unique resources, water well strat

What are the critical factors for new venture development

1. Uniqueness 2. Investment 3. Growth of Sales 4. Product availability 5. Customer availability

What are the 5 myths of VCs?

1. VC firms want to own control of your company and tell you how to run your company 2. VCs are satisfied with a reasonable return 3. VCs are quick to invest 4. VCs are interested in backing new ideas or high tech inventions-mgmt is a secondary consideration 5. VCs need only basic summary before they make an investment

What are some of the recent developments in VC?

1. VC have increased investments in early stage funding 2. Sources of capital are shifting away from less experienced VC to more experienced VC 3. Innovation has become more global 4. Funds are more specialized and less homogeneous 5. Syndicated (joint funding) deals are emerging 6. Level of seed and start-up financing is much lower in comparison to financing available for early stages, expansion, and acq 7. VCs view themselves as service providers whose job is to provide advice and counsel 8. Trend towards stronger legal environment

What are the entrepreneurial ethical dilemmas?

1. dilemma dilemma between shareholders' interest and the moral of individuals 2. legal versus ethical dilemmas

What are the most important advantages of buying an ongoing venture?

1. enterprise is already in operation 2. time and effort associated with starting a new enterprise are limited 3. possible to buy an ongoing business at a bargain price

Why are business decisions of entrepreneurs complex?

1. ethical decisions have extended consequences 2. business decisions that involve ethical question have multiple alternatives 3. ethical business decisions have mixed outcomes 4. most business decision have uncertain ethical consequences 5. most ethical decisions have personal implications

What are the sources of stress?

1. loneliness 2. Immersion in business 3. people problems 4. need to achieve

What are the 4 most well-known advantages of franchising?

1. training and guidance 2. brand-name appeal 3. proven track record 4. financial assistance

What are 4 ethical rationalizations?

1. Activity is not really illegal or immoral 2. It is in the corporations best interest 3. It will never be found out 4. It helps the company, so the company will condone it

What 5 activities characterize the social entrepreneur?

1. Adoption of a mission to create and sustain social value 2. Recognition and relentless pursuit of opportunities for social value 3. Engagement in continuous innovation and learning 4. Action beyond the limited resources at hand 5. Heightened sense of accountability

What are the corporate innovator's commandments?

1. work each day willing to give up your job for the innovation 2. circumvent bureaucracy 3. Ignore your job description 4. build a spirited innovation team 5. keep your innovation underground 6. find upper-level manager as sponsor 7. always seek forgiveness rather than permission 8. be realistic about ways to achieve goals 9. share the glory

What is the integrative model of entrepreneurial inputs and outcomes?

1.2 image on page 10 of PDF 5 inputs (opportunities, individuals, org context, unique business concepts, resources) lead to--> The entrepreneurial process (ID opps, assess and acquire resources, implement) leads to--> Entrepreneurial Intensity (# of events and degree of entre: innovation, risk taking, proactiveness) Outcomes (venture, value creation, new product services, processes, tech, profits, rev growth)

What are the two phenomena constituting the domain of corporate entrepreneurship?

1. Corporate venturing 2. Strategic entrepreneurship

What are disadvantages of the IPO?

1. Costs 2. Disclosure 3. Requirements 4. Shareholder pressure

What schools of thought make up the micro view on entrepreneurship?

1. Entrepreneurial Trait (People School) 2. Venture Opportunity 3. Startegic Formulation

Why do new ventures fail?

1. Poor timing 2. Product design problems 3. Inappropriate distribution strategy 4. Unclear business definition 5. overreliance on one customer 6. initial undercapitalization 7. assuming debt too early

What are the 5 critical steps of corporate entrepreneurship strategy?

1. developing the vision 2. encouraging innovation 3. structuring for an entrepreneurial climate 4. preparing individual managers for corporate innovation 5. developing teams

When were entrepreneurs first recognized?

18th century France

What is design methodology?

Converts idea into form Learn from qualitative research Learn from prototyping Learn from feedback

Entrepreneur Word Derivation

French "entreprende" meaning: to undertake

What is entrepreneurial stress?

Happens due to entrepreneurs responsibility in business; has to wear multiple hats with little resources or outside support

What are the two different types of innovation?

Radical and incremental

What is sustainable entrepreneurship?

focused on the preservation of nature, life support, and community in the pursuit of perceived opps... gain is broadly construed to include economic and noneconomic gains.

In the 20th c. what was entrepreneurship synonymous with?

free enterprise and capitalism

What is strategic venturing? What are the 5 areas this can happen in?

innovations adopted that are adopted in the firm's pursuit of competitive advantage. 1. Strategic Renewal 2. Sustained Regeneration 3. Domain Redefinition 4. Organizational Rejuvenation 5. Business Model reconstruction

New Entrepreneur Definition

innovator or developer who recognizes and seizes opportunities; converts ideas into marketable ideas; adds value; assumes risk of competitive marketplace; realizes rewards from these efforts

What does entrepreneurial cognition offer?

offers an understanding as to how entrepreneurs think and why they do some of the things they do

What is intracapital?

special capital set aside for the corporate entrepreneur to use whenever money is needed for further research ideas

What are role distortion acts? Definition and examples.

Acts that are for the firm; bribery, price fixing, manipulating suppliers

What are role assertion acts? Definition and examples.

Acts that are for the firm; investing in unethically governed countries, nuclear tech for energy generation, not withdrawing product line in face of allegations of inadequate safety.

What are role failure acts? Definition and examples.

Acts that go against the firm; superficial performance appraisal, not confronting expense account cheating, inflated praise

What is corporate venturing? What are the 3 implementation modes that corp venturing can be accomplished?

Adding of new businesses to the corporation. 1. Internal corporate venturing 2. Cooperative corporate venturing 3. External corporate venturing

What are nonrole acts? Definition and examples.

Against the firm; expense account cheating, embezzlement, stealing supplies

What role does entrepreneur play in business world?

Aggressive catalyst for change

What is share value?

An approach to creating economic value that also creates value for society. It is a transformation of business thinking recognizing societal weaknesses that create internal costs for firms

How does the social entrepreneurship process begin?

Begins with perceived social opportunity translated into an enterprise concept

Entrepreneurial Mindset

Cognition and commitment to view the world with an innovative mindset

What is the framework of frameworks?

Combines all frameworks in one see page 12 in pdf

What is the dual process model of recovering from grief over entrepreneurial failure?

Entrepreneur recovers more quickly if he or she oscillates between loss and restoration orientation

What does the entrepreneurial trait school say? Is it macro or micro?

Focus on the study of traits that are usually exhibited by successful entrepreneurs. (i.e. achievement, creativity, determination, and tech knowledge) (Micro)

What does the venture opportunity school say? Is it macro or micro?

Focuses on entrepreneur's ability to generate the right idea at the right time: creativity and market awareness are viewed as essential. (Micro)

What does the financial/capital school of thought say? Is it macro or micro?

Focuses on viewing entrepreneurial venture from a financial management standpoint. (macro)

What is the FDD?

Franchise Disclosure Agreement-governs the long-term relationship and contains the only promises and obligations of the parties to each other that will remain in effect over the stated time term of the contracts. Franchisee must receive FDD at least 10 days before they are asked to sign any contract or pay any money.

What is the psychic risk entrepreneurs face?

Inability to mentally bounce back from financial catastrophes

What are the four critical elements of negotiating a deal to acquire a firm?

Information, time, pressure, and alternatives

What are the two approaches used to examine the activities involved in entrepreneurship?

Integrative approach Dynamic states approach

What are the objectives of the VC?

Interested in making a large ROI

What is the feasibility criteria approach?

Is product proprietary? Are costs realistic? Is there potential for high margins?

What is the comprehensive feasibility approach?

Looks at the venture's feasibility through a technical and market perspective.

What is the career risk entrepreneurs face?

Loss of secure organizational job

What is the difference between loss and restoration orientation?

Loss: focus on failure, shift from events leading up to the failure to emotions surrounding failure event Restoration: distracting oneself from thinking about failure and being proactive toward secondary sources of stress

What is the difference between the micro and macro view?

Micro: internal locus of control (entrepreneur has control) Macro: external locus of control (entrepreneur has no control)

What is the dynamic states approach?

Model depicts ventures being dependent on their environment for survival. Network of relationships and systems that convert opportunity tension into value for a venture's customers

What is equity financing?

Money invested in venture with no legal obligation to pay it back; requires sharing of ownership.

What is the family and social risk entrepreneurs face?

Neglect family and friends

What does the displacement school of thought say? Is it macro or micro?

Political, cultural, and economic displacement; individual fight adversity and pursue a venture since they are displaced from doing other activities. (macro)

What is crowdfunding?

Practice to seek funding from a large number of people, typically via the internet.

What are benefit corporations?

Purpose: create a material positive impact on society Accountability: fiduciary duty to workers, community, and environment

What are the key questions to ask when deciding whether to buy?

Why is the business being sold? What is the current physical condition of the business? What is the condition of the inventory? What is the state of the company's other assets? How many employees will remain? What type of competition does the business face? What does the firm's financial picture look like?

What is the corridor principle?

With every venture launched, new and unintended opportunities often arise.

What is regulation d?

allows smaller firms to sell stock through direct public offerings, funds can be raised from an unlimited number of "accredited" investors

What is Robert Ronstadt's definition of entrepreneurship?

dynamic process of creating wealth, individual take risks to create this wealth, entrepreneur must secure resources to provide service or product (doesn't need to be new)

What is the 20th integrated definition of entrepreneurship?

dynamic process of vision, change, and creation. It requires an application of energy and passion toward the creation of implementation of innovative and creative solutions. Essential ingredients: willingness to take calculated risks, creative skill to find resources, skill to build business plan

What is the financial risk an entrepreneur faces?

entrepreneur puts significant portion of his or her savings into new ventures. Entrepreneur is exposed to personal bankruptcy.

What is the profile analysis approach?

sizes up the venture's strength and weaknesses along a number of key dimensions or variables

What is entrepreneurial cognition?

the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

Old Entrepreneur Definition

undertakes to organize, manage, and assume risk of a business

What does the environmental school of thought say? Is it macro or micro?

Deals with external factors that affect a potential entrepreneur's lifestyle. I.e. changes in work environment that promote entrepreneurship or atmosphere of friends (macro)

What are the contemporary methodologies to evaluate the firm's viability?

Design methodology and lean start-up methodolgy

What does the strategic formulation school thought say? Is it macro or micro?

Emphasizes the planning process in successful venture development (Micro)

What is lean start-up methodology?

Scientific approach to creating early venture concepts and delivers a desired product to customers' hands faster MVP three a's: actionable, accessible, auditable Pivot Build-measure-learn feedback loop Validated learning

What does the experiential view of the entrepreneur capture?

The emergent and temporal nature of entrepreneurship. Encourages consideration of a dynamic, socially situated process.

How is entrepreneurial activity sustained?

The result of the existence of several organizational antecedents, such as top management support, autonomy, rewards, resources, and flexible organizational boundaries.

What is the triple bottom line?

Three dimensions of performance: economic, environmental, and social (profits, people, and planet)