Entrepreneurship Quiz #1
Scope
A choice about which customer groups to serve and how to serve them
Causal process
A process that starts with a desired outcome and focuses on the means to generate that outcome
Effectuation process
A process that starts with what one has, and selects upon possible outcomes
Technological uncertainty
Considerable difficulty in accurately assessing whether the technology will peformbabd whether alternate technologies will emerge and leapfrog over current technologies
Demand uncertainty
Considerable difficulty in accurately estimating the potential size of the market, how fast it will grow, and the key dimensions along which it will grow
"Me-too" strategy
Copying products that already exist and attempting to build and advantage through minor variations
Imitation strategies
Copying the practices of other firms
Uncertainty for customers
Customers may have considerable difficulty in accurately assessing whether the new product or service provides value for them
Cognitive adaptability
Describes the extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them
Bricolage
Entrepreneaurs making do by applying combinations of the resources at hand to new problems and opportunities
Sustainable entrepreneurship
Entrepreneurship focused on perserving nature, life support, and community (sustainability) in the pursuit of perceived opportunites to bring future products, processes, and services into existence for gain (entrepreneurial action) where gain is broadly construed to include economic and noneconomic benefits to individuals, the economy, and society (development)
Moral-support network
Individuals who give psychological support to an entrepreneur
Professional-support network
Individuals who help the entrepreneur in business activities
Role Models (mentors)
Individuals whose example an entrepreneur can aspire to and copy
Entrepreneurial thinking
Individuals' mental processes of overcoming ignorance to decide whether a signal represents an opportunity for someone is also an opportunity for them specifically, and/or processing feedback frim action steps taken
Emerging industries
Industries that have been newly formed and are growing
Entrepreneurial mind-set
Involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions
Liabilities of newness
Negative implications arising from an organization's newness
Error of commission
Negative outcome from acting
Error of omission
Negative outcome of not acting
New entry
Offering a new product to an established ir new market, offering an established product to a new market, or creating a new organization
Assets of newness
Positive implications arising from abd organization's newness
Market knowledge
Possession of information, technology, know-how, and skills that provide insight into a market and its customers
Technological knowledge
Possession of information, technology, know-how, and skills that provide insight into ways to create new knowledge
Comprehension questions
Questions designed to increase entrepreneurs' understanding of the nature of the environment
Connection tasks
Tasks designed to stimulate entrepreneurs to think about the current situation in terms of similarities to and differences from situations previously faced and solved
Reflection tasks
Tasks designed to stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process
Strategic tasks
Tasks designed to stimulate entrepreneurs to think about which strategies are appropriate for solving the problem (and why) or pursuing the opportunity (and how)
Entrepreneurial resource
The ability to obtain, and then recombine, resources into a bundle that is valuable, rare, and inimitable
Entrepreneurial self-efficacy
The conviction that one can successfully execute the entrepreneurial process
Switching costs
The costs that must be borne by costumers if they are to stop purchasing from the current supplier and begin purchasing from another
Entrepreneurial action
The creation of new products/ processes and/or the entrt into new markets, which may occur through a newly created organization or within an established organzation
Perceived desirability
The degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes
Lead time
The grace period in which the first mover operates in the industry under conditions of limited competition
Resources
The inputs into the production process
Entrepreneurial intentions
The motivational factors that influence individuals to pursue entrepreneurial outcomes
Window of opportunity
The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry
Risk
The probability and magnitude, of downside loss
Key success favors
The requirements that any firm must meet to successfully compete in particular industry
Entrepreneurial strategy
The set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry
Entrepreneurial Opportunites
Those situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production
Broad-scope strategy
Thought of as taking a "portfolio" approach to dealing with uncertainties about the attractiveness of different market segments
