entrepreneurship exam 1
publications, direct observations, speeches seminars and presentations
3 major sources of information that supply data related to the entrepreneurial mindset 1. __________: technical and professional journals; textbooks on entrepreneurship; news periodicals; the internet 2. _____ _____: interviews, surveys, case studies 3. _______, _______, and _______: by practicing entrepreneurs
financial risk, career risk, family and social risk, psychic risk
4 specific areas of risk faced by entrepreneurs 1. ______ _____: motive varies in entrepreneurs desire for wealth; the money or resources at stake for a new venture 2. ____ ____: loss of employment security; frequent question is if the entrepreneur will be able to find a job or go back to their old one if their venture fails 3. ______ and ______ ____: competing commitments of work and family; starting a new venture requires a lot of time and energy causing other commitments to possibly suffer 4. ______ ____: psychological impact of failure on the well-beings of entrepreneurs; the greatest risk to the well being; money, jobs, and family can readapt
environmental analysis
The process of assessing and interpreting the information gathered through environmental scanning
gazelle
a business establishment with at least 20% sales growth in each year for 5 years, starting with a base of at least $100,000 in annual sales
market
a group of consumers (potential consumers) who have purchasing power and unsatisfied needs; a new venture will survive only if a market exists for its product or service
ecovision
a leadership style that encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands
external locus of control
a point of view in which external processes are sometimes beyond the control of the individual entrepreneur
new new approach
a start up approach to business in which the concept is a bran new idea to the marketplace; approach to creating a a new venture
new old approach
a start up approach to businesses in which the concept provides a new angle to something that already exists in the marketplace; approach to creating a new venture
code of conduct
a statement of ethical practices or guidelines to which an enterprise adheres
corporate entrepreneurship strategy
a vision directed, organization wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity
triple bottom line
accounting framework that combines consideration of traditional economic measures with environmental and social dimensions to measure the firms performance in achieving its sustainability goals
corporate social responsibility
actions that appear to further some social good, beyond the interest of the firm and that which is required by law and often denotes social engagement of organizations
demographic variables
age, marital status, sex, occupation, income, location
entrepreneur, profile, research
although no single definition of _________ exists, and no one ________, can represent all of today entrepreneurs, ________ is providing an increasingly sharper focus on the subject
competitive analysis
an attempt to assess the strengths and weaknesses of the competing products or services; compare competing products or services on the basis of price, performance, service, warranties, and other pertinent features
entrepreneur
an innovator or developer who recognizes and seizes opportunities; converts these opportunities into workable/marketable ideas; adds value through time, effort, money, or skills
entrepreneurship
an integrated concept that permeates an individuals business in an innovative manner 1. seeking opportunities 2. taking risks beyond security 3. having the tenacity to push an idea through reality
franchise
any arrangement in which the owner of a trademark, trade name, or copyright has licensed others to use it in selling goods or services
synthesis
combination of existing concepts and factors into a new formulation or use ex. fred smith - fed ex; howard shultz - starbucks
background, knowledge, incubation process, idea experience, evaluation, implementation
components in the creativity process Phase 1: _______ or ______ accumulation: successful creation are generally preceded by investigation and information gathering phase 2: the _______ _____: creative individuals allow their subconscious to mull over tremendous amounts of information gathered during the preparation phase phase 3: the _____ _____: the most exciting phase because its when the idea or solution is discovered; the "eureka factor" phase 4: ________ and ______: the most difficult step; requires a great deal of courage, self discipline, and perseverance
demographic variables
convenience, cost, style, trend are all benefits for what kinda of variables? (depending on the nature of the new venture)
duplication
creative replication of an existing concept ex. wal-mart - department stores; gateway - personal computers
entrepreneurial mindset
describes the most common characteristics associated with successful entrepreneurs as well as the elements associated with the "dark side" of entrepreneurship
entrepreneurial characteristics
determination and perseverance; high energy level; calculated risk taking; passion; persistent problem solving; seeking feedback; ability to make decisions quickly; flexibility; imagination; ability to trust workers
innovator
difference between adaptor and innovator _______: approaches tasks from unusual angles; discovers problems and avenues of solutions; questions basic assumptions related to current practices; has little regard for means and is more interested in ends; has little tolerance for routine work; has little or no need for consensus and is often insensitive to others
adaptor
difference between adaptor and innovator ________: employs a disciplined, precise, methodical approach; is concerned with solving rather than finding problems; attempts to refine current practices; tends to be means oriented; is capable of extended detailed work; is sensitive to group cohesion and cooperation
external scan
effort by which an entrepreneur examines the external and internal environments before making a decision
strategic vision, organizational architecture, processes, behavior
elements of corporate entrepreneurship strategy 1. an entrepreneurial ______ ______ 2. a pro entrepreneurship _________ _______ 3. entrepreneurial _______ and ______ as exhibited across the organizational hierarchy
corporate entrepreneurship
entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results within an established corporation; a new 'corporate revolution' taking place due to the infusion of entrepreneurial thinking into bureaucratic structures
passion
entrepreneurial characteristics: a fundamental emotional experience; a discrete emotion that is quite intense being described as an underlying force that fuels our strongest emotions or the feeling when engaging in activities that are of deep interest
persistent problem solving
entrepreneurial characteristics: entrepreneurs aren't intimidated by difficult situations; instead their self confidence and general optimism seems to translate into a view that the impossible just takes a little longer
high energy level
entrepreneurial characteristics: extraordinary workloads and stressful demands placed on entrepreneurs put a premium on their energy; fine tune energy through diet, exercise, and relaxation
calculated risk taking
entrepreneurial characteristics: successful entrepreneurs are not gamblers - when they decide to participate in a venture they do so in a very calculated, carefully thought out manner in order to get the odds in their favor; willingness to do so in terms of time, equity, and career
seeking feedback
entrepreneurial characteristics: successful entrepreneurs are quick learners and have a strong desire to know how they are doing and how they might improve their performance
ability to make decisions quickly
entrepreneurial characteristics: the ability of an entrepreneur to trust their initial instinct and go with it
determination and perseverance
entrepreneurial characteristics: total dedication to success as an entrepreneur can overcome obstacles and setbacks; sheer determination and an unwavering commitment to succeed often win out against odds
drive to achieve
entrepreneurs are self-starters who appear to others to be internally driven by a strong desire to compete, to excel against self-imposed standards, and to pursue and attain challenging goals
vision
entrepreneurs know where they want to go and know what they want their firms to be and what they can be; in many cases this develops over time as the individual begins to realize what the firm is and what it can become
social entrepreneurship
entrepreneurship applied to social problem solving whereas traditional, private sector entrepreneurship focuses on innovation, risk taking and large scale transformation; exhibits characteristics of nonprofits, governments, and businesses, combining private sector focus on innovation, risk taking and large scale transformations with social problem solving
social obligations
environment, energy, fair business practices, human resources, community involvement, products
benefit corporations
exactly the same as traditional corporations except they are more socially sustainable through their purpose, accountability, and transparency purpose: to create a material positive impact on society and the environment accountability: to have a fiduciary duty to consider the interests or workers, the community, and the environment transparency: to report annually to the public on overall social and environmental performance with a credible and transparent third party standard
tolerance for ambiguity
exists when the entrepreneur can deal with the various setbacks and changes that constantly confront him or her; successful entrepreneurs thrive on the fluidity and excitement of the unknown
complexity of ethical decisions
extended consequences, multiple alternatives, mixed outcomes, uncertain ethical consequences, personal implications are all what?
explicit goals, feedback, positive reinforcement, individual responsibility, rewards, results, punish failures
factors evident in large corporations which have exhibited successful innovations: 1. set ______ _____ 2. create a system of ________ and ______ ______ 3. emphasize ________ _______ 4. provide _______ based on ______ 5. do not ______ _____
convenience goods, shopping goods, specialty goods, unsought goods, new products
five major consumer classifications based on the way they view ventures product or service 1. _______ ______: consumers will want these goods and services but will not be willing to spend time shopping for them; staple goods; impulse gods; emergency goods and services 2. ______ _____: products consumers will take time to examine carefully and compare for quality and price 3. ________ ______: products or services consumers make a special effort to find and purchase 4. _______ ______: items consumers do not currently seek or need; life insurance; products that require an explanation; encyclopedias; cemetery plots 5: _____ _______: items that are unknown due to lack of advertising or are new products that take time to understand
illegal, immoral, best interest, found out, condone it
four distinct roles managers take rationalizing morally questionable acts 1. activity is not "really" _____ or ______ 2. that its in the individuals or the corporations _____ ____ 3. that it will never be ____ _____ 4. that because it helps the company the company will ______ ___
reasons for unethical behavior
greed; distinction between activities at work and at home; lack of foundation in ethics; survival (bottom line thinking) are all what?
code of conduct
have been becoming more prevalent in the industry; are proving to be more meaningful in terms of external legal and social development; are more comprehensive in terms of their coverage; are easier to implement in terms of the administrative procedures used to enforce them
market niche
homogenous group with common characteristics; all the people who have a need for the newly proposed product or service
recognizing relationships, functional perspective, using, brains
how can creativity be developed? 1. ______ _____: looking for different or unorthodox relationships among the elements and people around you 2. developing a _____ _____: viewing things and people in terms of how they can satisfy his or her needs and help complete a project 3. ______ your _____: the right brain helps us understand analogies, imagine things, and synthesize information; the left brain helps us analyze, verbalize, and use rational approaches to problem solving
SWOT
how do you do a competitive analysis?
600,000, 800,000, 275, 49.6, 99.7, 45.6, 20.1, 1, 150
how dominant have new and small ventures been in the economy? 1. entrepreneurs create _______ to ______ new businesses each year 2. ____ million small firms provide ___% of private sector jobs and make up ___% of employing firms 3. over the past 5 years the number of minority owned firms have increased by ____% while women owned businesses increased ____% 4. __ in every ____ adults participate in the founding of a new firm each year
secondary data
information that has already been compiled; cheaper and available but outdates and lack of specificity and questionable validity
primary data, observational, questioning, surveys, experimentation
information that is gathered specifically for the research at hand; found through experimentation and is the next step if secondary data are insufficient primary sources: - _______ or _______ methods - ________ and _______ are questioning methods
unexpected occurrences, incongruities, process needs, industry, market, demographic changes, perceptual changes, knowledge
major sources of innovative ideas: 1. _____ ______: successes or failures that were unanticipated or unplanned 2. ______: exist in the gap between expectations and reality 3. ______ _____: the pain and the innovative solutions are the painkillers 4. ______ and _____ changes: continual shifts in the marketplace caused by consumer attitudes, advancements in technology, and growth in the structure, design, or definition of markets or industries 5. ______ _____: changes in population size, age, education, occupation, geographic locality 6. _______ _____: intangible but meaningful changes such as use of time 7. _______ based concepts: inventions, which are the product of knew thinking, new methods, and new knowledge
doers, thinkers, born, made, inventors, academic, social misfits, profile, money, luck, unstructured, chaotic, initiatives fail, risk takers
major ten myths about entrepreneurs myth 1: entrepreneurs are ______, not _____ myth 2: entrepreneurs are ______, not ______ myth 3: entrepreneurs are always _______ myth 4: entrepreneurs are _______ and _______ ______ myth 5: entrepreneurs must fit the ______ myth 6: all entrepreneurs need is _____ myth 7: all entrepreneurs need is _____ myth 8: entrepreneurship is ______ and _______ myth 9: most entrepreneurial _________ _____ myth 10: entrepreneurs are extreme ____ ____
major ten myths about entrepreneurs
myth 1: entrepreneurs are doers, not thinkers myth 2: entrepreneurs are born, not made myth 3: entrepreneurs are always inventors myth 4: entrepreneurs are academic and social misfits myth 5: entrepreneurs must fit the profile myth 6: all entrepreneurs need is money myth 7: all entrepreneurs need is luck myth 8: entrepreneurship is unstructured and chaotic myth 9: most entrepreneurial initiatives fail myth 10: entrepreneurs are extreme risk takers
extension
new use or different application of an already existing product; ex. ray kroc with McDonalds; Mark Zuckerberg with Facebook
general environment, industry environment, competitor environment
parts of the external environments - ______ ______: demographic, economic, political/legal, sociocultural, technological, global - _____ _______: new entrants, suppliers, buyers, intensity of competition, product substitutes available - ______ _____: position of venture within the industry in the comparison to competition
conflicts over ethical decision making
pressure from inside and outside source, changes in societal values, morals, and norms are all what?
barriers to entry
proprietary technology, access to distribution channel, access to raw materials or resources, cost disadvantaged, risk of new entrants, intense rivalry among competitors, financial limitations are all examples of what?`
ethics
provides the basic rules or parameters for conducting any activity in an "acceptable" manner; represents a set of principles prescribing a behavioral code of what is good and right or bad and wrong
economic, macro, common, characteristics, federal, state, local government regulations, trends, policy formation, barriers to entry
questions an entrepreneur should ask when assessing the ______ or_______ view environment of a venture as it relates to ______ industry ______: 1. what ____, _____, and _____ _______ _______ affect this type of business? 2. what are the _____ in _____ ______ as it relates to the location in which you hope to start your business 3. what are the ____ __ ______ for your specific venture within the environment in which you plan to launch?
vision, innovation, intrapreneurially climate, individual managers, corporate entrepreneurship, venture teams
steps of developing a corporate entrepreneurship strategy: 1. Developing the ________: must be clearly articulated by the organizations leaders 2. encouraging ________: corporations must understand and develop this as the key element in their strategy 3. structuring for an ________ ______:a top level managers job is to create a work environment that is highly conducive to innovation and entrepreneurial behaviors 4. developing _______ ______ for ______ ______: managers should make sure innovation and entrepreneurial behaviors are understood by their employees 5. developing _____ _____: considered a 21st c productivity breakthrough; this modern breed of work team is a new strategy and is referred to as self-managing
decision making, employees, rewards, punishments
steps that entrepreneurs take to establish ethical behavior: 1. ethical administrative ______ _____ 2. ethical behavior of _______ 3. explicit _____ and _______ based on ethical behavior
current marketing research, current sales analysis, marketing information system, sales forecasting, evaluation
steps when developing a marketing plan 1. ______ _____ _____: purpose is to identify customers (target markets) and fulfill their desires 2. ______ ______ ______: promoting and distributing products according to marketing research findings 3. _______ _____ _____: compiles and organizes data relating to cost, revenue, and profit 4. _____ _____: process of projecting future sales 5. ________: important part of marketing plan performance so that flexibility and adjustment can be incorporated
opportunity orientation
the constant awareness of opportunities that exist in everyday life
marketing research
the gathering of information about a particular market, followed by an analysis of that information
creativity
the generation of ideas that result in the improved efficiency or effectiveness of a system; a process that can be developed and improved
innovation
the process by which the entrepreneurs convert opportunities into marketable ideas; a combination of the vision to create a good idea and the perseverance and dedication to remain with the concept through implementation
marketing plan
the process of determining a clear, comprehensive approach to the creation of customers
market segmentation
the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest
environmental awareness
the reawakening of the need to preserve and protect or natural resources
consumer behavior
the types and patterns of consumer characteristics; personal and psychological characteristics
internal locus of control
the viewpoint in which the potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence; the entrepreneur believes their accomplishments or set back happen through their own control
to undertake
the word entreprendre means what?
entreprendre
the world entrepreneur derived from what french word?
secondary data, external sources
this is found through internal and/or external sources such as internet sources: ________ ______: available in periodicals, trade association literature, and government publications _______ ______: consist of information that exists within the venture for example the records of the venture
invention
totally new product, service, or process ex. wright brothers - airplane; thomas edison - light bulb x
corporate entrepreneurship
trend in entrepreneurship, research, and education: and the need for entrepreneurial cultures has drawn increased attention; a process whereby an individual group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization
women and minority entrepreneurs
trend in entrepreneurship, research, and education: appear to face obstacles and difficulties different from those that other entrepreneurs face
social entrepreneurship
trend in entrepreneurship, research, and education: has unprecedented strength within the new generation of entrepreneurs
entrepreneurial cognition
trend in entrepreneurship, research, and education: is providing new insights into the psychological aspects of the entrepreneurial process
family businesses
trend in entrepreneurship, research, and education: these have become a stronger focus of research
entrepreneurial education
trend in entrepreneurship, research, and education: these have become one of the hottest topics in business and engineering schools throughout the world
the global entrepreneurial movement
trend in entrepreneurship, research, and education: this is increasing
venture financing
trend in entrepreneurship, research, and education: venture capital and angel capital financing and other financing techniques strengthened in the 1900s
trends in entrepreneurship, research, and education
venture financing, corporate entrepreneurship, social entrepreneurship, entrepreneurial cognition, women and minority entrepreneurs, the global entrepreneurial movement, family businesses, entrepreneurial education are all forms of what?
training, brand name, track record, financial, knowledge, local, government, resources, capital outlay, risk
what are the advantages of buying an on going business (franchise) 1. ________ and guidance 2. _____-____ appeal 3. a proven _______ _____ 4. __________ assistance 5. immediate intimate ______ of the _____ conditions and _______ 6. use of the ______ of the other firms involved 7. initial _____ _____ and overall ____ are lower
strengths weaknesses opportunities threats
what does SWOT mean?
competitive analysis
what drives the competition (future goals); what the competitor is doing best currently; what assumptions can you make about the competition; what are the strengths and weaknesses of the competition; SWOT
barriers to entry
what factors might keep you and your venture team from establishing your venture; personal and related to the skills, knowledge, and even money you bring to the team
rationalizations
what managers use to justify questionable conduct
step 1
what step in developing a market plan? current marketing research to identify customers (target markets) and to fulfill their desires; determining who the customers are what they want and how they buy; the companies strengths, weaknesses, market profile, current and best customers, potential customers, competition, outside factors, legal changes
step 2
what step in developing a market plan? current sales analysis: promoting and distributing products according to marketing research findings; matching the correct customer profile with sales priorities is a major goal
step 5
what step in developing a market plan? evaluation: evaluating marketing plan performance is important so that flexibility and adjustment can be incorporated into marketing planning; reports should be generated from a customer analysis
step 3
what step in developing a market plan? marketing information system: compiles and organizes data relating to cost, revenue, and profit from the customer base for monitoring the strategies, decision, and programs concerned with marketing
step 4
what step in developing a market plan? sales forecasting: the process of projecting future sales through historical sales figures and the application of statistical techniques
entrepreneurs
who will continue to be the answer to any economic downturn and will continue to lead economic growth in several ways?
