Entrepreneurship SB 3

What are the typical categories used to analyze a business idea?

Finance Competitors Nonfinancial resources Time Risk

Which of the following are required in the initial analysis of a business opportunity?

Financial investments Focus Time

Why are hobbies a good skill source?

Hobbies require the development of specific skills. Individuals are passionate about their hobbies.

Once a skill analysis has been completed, the next step is to:

examine the marketplace for opportunities.

The steps in the process of generating ideas do not occur in a(n) ______ fashion but should occur in a(n) ______ manner.

linear; interactive

The initial analysis is a process of:

moving from three to five ideas to a single idea

All new businesses have an inherent amount of_________associated with the starting and operation of the business.

risk

The risk in starting and operating a new business is determined by:

the entrepreneur

Which of the following questions should NOT be explored to identify additional skill sources?

What are my worst accomplishments in life?

Once a list of skills, abilities, and interests has been developed, the next step is to

perform a gap analysis

True or false: Family experiences are an often overlooked source of skills for a new venture.

true

A founder or founding team must have synergy, which is a combination of:

understanding of an industry competitive advantage skill set

Which source of skills typically has direct applicability to the pursuit of a new business?

work experience

Along with the business idea, what else should be included in the first column of the gap analysis chart?

A brief explanation of the business idea

Which of the following contribute to personal skill sets?

Past work experience Family history Hobbies Current work experience

Threats to profit margin, threats to operational financing, and threats to sales generation schemes are three threats to business success that entrepreneurs consider when they examine and characterize business ______.

risk

The nature of the effort required for an entrepreneur to carry out an effective due diligence analysis necessitates _____.

a focus on a single business idea

The finance category on the gap analysis chart examines the:

amount of family resources that could be committed. amount of money required to operate a business. amount of money required to start a business.

If you prefer to work extensively with people, in which of the following businesses should you probably NOT pursue a business opportunity?

billing and bookkeeping

What are included in the first column of the chart used in the gap analysis?

The business idea A brief explanation of the idea

Which of the following statements make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps?

Entrepreneurs have a keen eye for what businesses are needed in an area. Most successful entrepreneurs have great ideas. Most successful entrepreneurs are too busy with their own business to pursue new ventures.

Which of the following is a principal cause of new business failure?

Insufficient financial resources at founding

Which of the following businesses could be most likely pursued by individuals who do NOT prefer to work with people?

Internet-based businesses Bookkeeping Order fulfillment

Identify a characteristic of a gap analysis for a new venture.

It is supposed to be completed by the entrepreneur or entrepreneurial team

Identify the characteristics of a gap analysis for a new venture using a chart.

It requires minimal or no research. It is a reasonably quick analysis.

Which of the following statements are true regarding education as it relates to skill sets?

Knowledge gained from formal education provides a skill set. Technology skills acquired through education can be particularly valuable. An opportunity that uses your education is another source of a business.

In the context of nonfinancial resources, which of the following are to be considered in a gap analysis for a new business?

Special contacts with customers Special contacts with suppliers Physical location of the business

What is the method used to identify an opportunity that exists between the demand for a product and the supply provided by firms in the market?

gap analysis

Research suggests that successful new business ideas are NOT determined by your:

gender parents race religion

An individual's work experience builds______________sets that can have direct applicability to the pursuit of a new business.

skill

Without the needed _____, the founders would be faced with not holding any advantage over the competitors who have the necessary depth in the area.

skill

In hobbies and activities, individuals develop_______specific to the hobbies

skills

What is the connection between the entrepreneur's skills, understanding of an industry, and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individual parts alone?

synergy

Successful business ideas are determined by the following

the creativity of the entrepreneur

Each type of business started will require different________frames

time

Which category of the gap analysis is typically grossly underestimated by entrepreneurs?

time

Examining ______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps.

trends

Which of the following steps are important to the development of a quality business idea?

Analyze the market and look for a gap or need not being met effectively. List and evaluate one's personal skill sets. Compare one's ability to fill the gaps with the opportunity available.

Without the needed skills, the founders would be faced with not holding any advantage over the _______ who have the necessary depth in the area.

competitors

Entrepreneurs can examine business risk by considering three threats to business success. Those three threats are:

threats to sales generation schemes. threats to operational financing. threats to the profit margin.

What is the suggested starting point for generating business ideas?

Analyzing the skill set of the potential founders

Which of the following are true regarding the process of generating ideas?

The process typically requires consideration. The process typically requires interaction. The process typically requires iteration.

What is included in the second column of the chart used in the gap analysis?

categories of analysis

Which of the following support the rationale for starting a business idea generation process by analyzing the skill sets of the potential founders?

Pursuing opportunities without the requisite skill set wastes money. Pursuing opportunities without the requisite skill set wastes time. There are literally millions of opportunities.

Which of the following are questions an entrepreneur should address regarding education?

What courses taken were particularly enjoyable? Have you attended any unusual education programs? Have you taken specialized training in any specific area?

Which of the following questions should be addressed by an entrepreneur when reflecting on family experience?

What is your family history with new business ventures? What skill sets exist within your nuclear family? Are there unique things your family does that others are interested in?

Identify the questions that should be considered by an entrepreneur when analyzing the nonfinancial resources category of a gap analysis for a new business.

What peculiar capabilities offer the entrepreneur a competitive advantage? What unique skills will be needed to run the business?

Once a list of skills and abilities has been developed, the next step is to perform a _______ to examine the marketplace for an opportunity that exists between the demand for a product and the supply provided by firms in the market.

gap analysis

List the steps that are important to the development of a quality business idea. Start from the first or initial step

1. list and evaluate ones personal skill sets 2. analyze the market and look for a gap or a need that is not being met effectively 3. compare ones ability to fill the identified gaps with an opportunity

Which of the following questions could be explored to identify additional skill sources?

In what industry would I prefer to work? What type of magazines and books do I read? What skills were involved in the three greatest accomplishments of my life?

A____________that uses your education is a potential source of a business.

opportunity

An individual's hobbies and past work experience contribute to the individual's personal _____ set

skill