EEE Quiz #1

lifestyle firms

Businesses that provide their owners the opportunity to pursue a particular lifestyle and earn a living while doing so (ski instructors).

entrepreneurial firms

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

Opportunity

Economic value. Opportunity driven behavior.

moderate risk makers

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

Six stages

Identify an opportunity, develop a business concept, assess the necessary resources, acquire the needed resources, implement, manage and harvest.

Creative Destruction

Innovation mechanism by which new production units replace outdated ones.

Benefits of Entrepreneurship

Job creation, new innovations and new industry, social and economic change.

Creating Value

Move beyond invention. Market-centered. Creates sources or forms of value.

Pull Factors

On the virtue of the attractiveness of being an entrepreneur. (Opportunity)

value

Relative worth, importance, or utility.

liability of newness

Situation that often causes new firms to falter because the people who start the firms can't adjust quickly enough to their role, and because a firm lacks a "track record" with customers and suppliers.

Unique Combination of Resources

Slightly different way.

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.

outside director

Someone on a firm's board of directors who is not employed by the firm.

employee

Someone who works for a business, at the business's location

SWOT Analysis

Strength, weakness, opportunity, threat.

execution intelligence

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

signaling

The act of a high-quality individual agreeing to serve on a company's board of directors, which indicates that the individual believes that the company has the potential to be successful.

triggering event

The event that prompts an individual to become an entrepreneur.

Process

The idea is only the start. Steps or stages. The process can be learned.

entrepreneurial intensity

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

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.

innovation

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

Entrepreneurship

The process of creating value by bringing together a unique combination of resources to exploit an opportunity.

Push Factors

When the conventional option of working is less attractive. (Necessity)

skills profile

A chart that depicts the most important skills that are needed and where skills gaps exist.

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.

virtual assistant

A freelancer who provides administrative, technical, or creative assistance to clients remotely from a home office.

advisory board

A panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis; unlike a board of directors, an advisory board possesses no legal responsibilities for the firm and gives nonbinding advice.

board of directors

A panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm.

inside director

A person on a firm's board of directors who is also an officer of the firm.

business plan

A written document describing all the aspects of a business venture, which is usually necessary to raise money and attract high quality business partners.

passion for their businesses

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

consultant

An individual who gives professional or expert advice

corporate entrepreneurship

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