Entrepreneurship 1 Final Exam Jumble
environmental scanning
a 3 step process in which businesses gather information about their surroundings, analyze that information and determine the future impact of that information
sales forecast
a prediction of what a firm's sales will be during a specific future time period
Delphi method
also called the "expert survey", is a variation of the jury of executive opinion, predictions are made secretly and then averaged together
feasibility study
an analysis of the viability of an idea, used to help answer the essential question: "should we proceed with the proposed project idea?"
What is a small business
any business that is operated by one or a few individuals, employs less than 100 people. represents 99.7% of all employers.
Quantitative forecasting
based on the results of gathering and analyzing all kinds of numerical market data
what are some reasons people decide to become entrepreneurs
being your own boss, doing something you enjoy, having the opportunity to be creative, freedom to set your own schedule, job security, making more money, being recognized within the community
what skills are needed for entrepreneurial success
communication, math, problem-solving, technology and computer, decision-making, organization and planning, teamwork, social, basic business, adaptability
What are some ways small businesses have contributed to society
contribute employment, pay taxes to government, help the flow of the economy, donations, some charitable institutions, sponsorship, welfare programs, advisers to respected government
stages of the entrepreneurial process
discovery- identifying opportunities, evaluation- analyzing and selecting the opportunity, and exploitation- launching and developing the enterprise
what are some reasons small businesses are flourishing
entrepreneurs come up with new ideas, do something that's never been done before, get venture capital funding, entrepreneurs can show creativity
product mix width
how many product lines are in one product mix
product mix length
how many products are in one product line
ways entrepreneurial venture is different from small business
innovation, risk, amount of wealth creation, speed of wealth creation
what are some reasons start-ups often fail
lack of control on the part of the entrepreneur, never total control of business or employees, mismanagement, high debt, resignation of staff, inadequate inventory, selling products below cost price, loss of market share, etc
product mix consistency
maintaining similar qualities in a product mix
Qualitative forecasting
or "judgmental" forecasting methods are based on expert opinion and personal experience
what are some personality traits that are associated with successful entrepreneurs
persistent, creative, responsible, inquisitive, goal-oriented, independent, risk-taking, action-oritented
a company's product mix has four different dimensions
product width, product mix length, product mix depth, product mix consistency
marketing mix
product, price, place, promotion
entrepreneurs must be able to:
recognize opportunity
marketing metrics
the business progress in measurable terms
What is an entrepreneurship
the process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business
entrepreneurial discovery
the process of systematically scanning for changes to discover opportunities to produce new goods or services (political change, technological, demographic, social)
product mix depth
the variety and number of products in a product mix
two approaches of forecasting a business must choose between
top-down ("breakdown" broken down into specific products) and bottom-up ("build up" starts with separate forecasts, then combined)
average market share
total sales volume / number of competitors in a given market
what are some risks and disadvantages of being an entrepreneur
working long hours, uncertain income, full responsibility, risking one's investment
why are inquiries important
(request for information) help you get assistance and information when you need it or it is helpful to people starting their own business
Professional development opportunities for entrepreneurs
SBA, Workforce Development Agencies, Chamber of Commerce, Community colleges, internet programs, mentor relationships
Sources of business start up information
Small Business Administration (SBA), Service Corps of Retired Executives (SCORE), Small Business Institute (SBI), Federal Trade Commission (FIC), Internal Revenue Service (IRS), Small Business Development Center (SBDC)