Ch.6 Entrepreneurship
Feasibility criteria approach
A criteria selection list from which entrepreneurs can gain insights into the viability of their venture.
Creation
A new social context developed by an entrepreneur with new rules, norms, values, scripts beliefs, or models.
Conformance
A new venture does not question, change, or violate the social structure but rather "follows the rules."
Start-Up problems
A 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
A 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.
Validated Learning
A process in which one learns by trying out an initial idea and then measuring it to substantiate the effect.
Legitamacy
A 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
A small venture in which the primary driving forces include independence, autonomy, and control.
Pivot
A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.
Comprehensive feasibility approach
A systematic analysis incorporating external factors.
Small profitable Ventures
A 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.
Marketability
Assembling and analyzing relevant information about a new venture to judge its potential success.
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.
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.
Internal problems
Involve adequate capital, cash flow, facilities/equipment, inventory control, human resources, leadership, organizational structure, and accounting systems.
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.
External problems
Related to customer contact, market knowledge, marketing planning, location, pricing, product considerations, competitors, and expansion.
Growth of sales
The growth pattern anticipated for new-venture sales and profits.
Uniqueness
The special characteristics and design concepts that draw the customer to the venture, which should provide performance or service that is superior to that of competitive offerings.Va
Growth stage
The third stage of a new venture life cycle, typically involving activities related to reformulating strategy in the light of competition.
Minimum Viable Product (MVP)
This is the early version of the product that enables a full turn on the feedback loop with a minimum of effort.
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.
Technical Feasibility
Producing a product or service that will satisfy the expectations of potential customers.
Institutional logics
Socially constructed, historical patterns of practices, assumptions, values, beliefs, and rules by which individuals provide meaning,
Design methodology
Takes an initial concept idea and develops a proof of concept that elicits feedback from relevant stakeholders.
Product availability
The availability of a salable good or service at the time the venture opens its doors.
Manipulation
An entrepreneur attempts to make changes in the external environment to achieve consistency between an organization and its environment.
Selection
A new venture locating in a favourable environment.
