Entrepreneurship Small Business Exam 1 (ch.4)

Feasibility

The extent to which an idea is visible and realistic and the extent to which you are aware of inter and external forces that could affect your business.

How do you conduct a comprehensive feasibility study for your business idea?

-Make sure your idea is feasible -Describe business -List unique benefits and limitations -Describe your industry -Compute financial projections -Write a future action plan

What are the five major pitfalls that business owners can become victim to when trying to become more innovative?

1) Identifying the wrong problem 2) Judging idea too quickly 3) Stopping with the first good idea 4) Failing to get that "bandits on the train" and as for support 5) Obeying rules that don't exist

What are the three innovative strategies small business owners can select?

1) Imitative strategies 2) Incremental strategy 3) Radical innovation strategies

What are the four stages of creativity?

1) preparation 2) incubation 3) illumination 4) verification

License

A legal agreement granting you rights to use a particular piece of intellectual property.

Royalty

A payment to a licensor based on the number or value of licensed items sold.

Pilot test

A preliminary run of a business, sale effort, program, or web site with the goal of assessing how well the overall approach works and what problems it might have.

creativity

A process producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities.

Entrepreneurial alertness

A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.

Imitative strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing.

Radical innovation strategies

Reject existing ideas and present a way to do things differently.

Radical innovation strategy

Rejecting existing ideas, and presenting a way to do things differently.

What is the tool created by Alex Osborne that is used to help you identify new opportunities?

SCAMPER

opportunity recognition

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

SCAMPER is an acronym for what?

Substitute Combine Adapt Magnify or modify Put to other uses Eliminate Rearrange

Incremental strategy

Taking an idea and offering a way to do something slightly better than it is done presently.

Conversion rate

The measure of how many visitors to your web site actually make a purchase from you.

Licensee

The person or firm which is obtaining the right to use a particular piece of intellectual property.

Licensor

The person or organization which is offering the rights to use a particular piece of intellectual property.

What are the sources of business ideas?

Work experience, similar business, hobby or personal interest, chance happening, family/ friends, education/expertise, idea sites, technology transfer/licensing

By recognizing the value of building a creative culture in your business, what occurs?

new ideas and change

What is one of the most basic entrepreneurial behaviors ?

opportunity recognition

What are the six major areas to consider when assessing the potential value of your business idea?

1) The product or service 2)The market 3) The protection of intellectual property 4)The people behind the idea 5) The other resources needed 6) The profits likely to be generated