Entrepreneurship Test 1

New Economic and Social Context

- Increasing role of science & technology- resulting in innovation-driven economy -Emergence of a global competition

Key Differences between Inventor and Entrepreneuer

- Level of education - Level of experience - Problem-solving - Level of self-confidence - Risk taking

Trademarks

-A distinguished word, name or symbol used to identify a product -Can last indefinitely Can be filed solely on the intent to use the trademark in interstate or foreign commerce; also with the intent to use in the future

Make Bricolage

-Applying combinations of the resources at hand to new problems and opportunities - Taking existing resources and tinkering and/or reframing them so they can be used in new ways

Creative Problem-Solving Techniques

-Brainstorming -Reverse Brainstorming --A group method for obtaining new ideas focusing on the negative -Brain Writing --Form of written brainstorming --It is a silent, written generation of ideas by a group of people

Trademark Categories

-Coined Marks (Mercedes) -Arbitrary Marks (Apple) -Suggestive Marks (Halo Shampoo) -Descriptive Marks (Robberoid for roofing material)

Filing A Trademark

-Completion of the written form -A drawing of the mark -Five specimens showing actual use of the mark -The fee -Initial determination of suitability takes 3 months

Key Sources of New Ideas

-Consumers -Existing Products and Services -Distribution Channels -Federal Government -Research and Development

First Mover Advantages

-Cost -Less Comp -Secure Important Channels -Prime Position for Customers -Expertise from participation

Foundation company

-Created from research and development -Lays the foundation for a new business area.

First Mover Disadvantages

-Environmental Instability -Customer Uncertainty -Short Lead Time

Methods of Generating New Ideas

-Focus Groups -Brainstorming -Problem Inventory Analysis

Contracts

-Legally binding agreement between two parties -Business deals can conclude with a handshake -US courts insist on a written contract for all transactions over $500

Types of Insurances

-Property -Casualty -Life -Workers Compensation -Bonding

Insurance

-Provides a means of managing risk in the new business -Some are required by law and cannot be avoided while others are may be necessary to protect the financial net worth of the venture -Skyrocketing medical costs can have significant impact on insurance premiums

Trade Secrets

-Provides protection against others revealing or disclosing information that could be damaging to the business -Have life as long as the idea or process remains a secret -Not covered under federal law -Legal action through common laws only

High-potential venture

-Receives the greatest investment interest and publicity -Starts out like a foundation company, but attains rapid growth -Also called gazells, is integral to the economic development of an area

Small entrepreneurial firms are:

-Responsible for half of all innovation - Credited with 95% of all radical innovation

Copyrights

-Right given to prevent others from printing, copying or publishing any original works of authorship -Term is life of author plus 70 years

How do entrepreneurs think

-Structurally -Engage in bricolage -Often Effectuate -Cognitively adapt -Learn from failures

Patent Cooperation Treaty (PCT)

-To facilitate filings in multiple countries in one office -Provides a preliminary search that assesses whether the filing firm will face infringements in any country

Opportunity Analysis Plan

1) Description of the idea and its competition 2) Assessment of the market for the idea 3) Assessment of the entrepreneur/team 4) Discussion of the next steps needed to make the idea the basis for a viable business venture

Entrepreneurial Process

1) Identify and evaluate the opportunity 2) Develop a business plan 3) Determine the resource requirement 4) Manage the resulting enterprise

Patent Application

1) Introduction 2) Description of Invention 3) Claims 4) Declaration

4 Aspects of being an entrepreneur today:

1) Involves creation process 2) Requires devotion of time and effort 3) Involves rewards of being an entrepreneur 4) Requires assumption of necessary risks

Achieving Entrepreneurial Greatness

1) Treat others as you would want to be treated 2) Share the wealth that is created with all those who have contributed to it at all levels 3) Give back to the community

Protecting Contracts

1) Understand the terms and conditions in the contract 2) Cross out anything that you don't agree to 3) Do not sign if there are blank spaces (These can be crossed out) 4) Make a copy for your files after signing

Licensing

A contractual agreement giving rights to others to use intellectual property in return for a royalty or fee.

Entrepreneurial mind-set

Ability to rapidly sense, act, and mobilize even under uncertain conditions

The revolution

An age of omnipresent entrepreneurship; more choices, more innovation, more technological advances, more change, more opportunity, more possibilities

Restoration orientation

An approach to negative emotions based on both avoidance and a proactiveness toward secondary sources of stress arising from a major loss

Loss orientation

An approach to negative emotions that involves working through, and processing, some aspect of the loss experience and as a result of this process, breaking emotional bonds to the object lost

Entrepreneurial thinking & action

An individuals mental processes of overcoming ignorance to -Decided whether a signal represents an opportunity for someone -Decide whether that opportunity is applicable to the individual specifically -Process feedback from action steps taken

Superficial similarities

Basic elements of the technology resemble the basic elements of the market

Age

Between 22 and 45

Entrepreneurial Orientation

Commitment to take action on potential opportunities, access to resources, more organic with few layers of bureaucracy between top management and customer

Unique Selling Propositions

Compare with at least 3 competitive products/services most similar in filling the identified market need.

Entrepreneurial Self-Efficacy

Conviction that one can successfully pursue entrepreneurial outcomes

New Business Venturing

Corporate venturing, refers to creation of a new business within an existing organization

Design Patent

Covers new, original, ornamental, and unobvious designs for articles of manufacture (14 year term)

Inventor

Creates something for the first time; highly driven and motivated by his or her own work and personal ideas

Perceived Desirability

Degree to which potential entrepreneurial outcome is evaluated as favorable or unfavorable

Connection Tasks

Designed to stimulate entrepreneurs to think about the current situation in terms of similarities to and differences from situations previously faced and solved

Reflection Tasks

Designed to stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process

Strategic Tasks

Designed to stimulate entrepreneurs to think about which strategies are appropriate for solving the problem or pursuing the opportunitiy

Forced Relationship

Developing a new idea by looking at product combinations

Free association

Developing a new idea through a chain of word associations

Checklist Method

Developing a new idea through a list of related issues

Bricolage

Entrepreneurs making do by applying combinations of the resources at hand to new problems and opportunities

Business Methods

Example: amazon.com

Strategic Orientation

Focuses on factors that are inputs in formulation of the firms strategy, control of resources, formalized management structure

Hyper-competition

Forced companies to have a increased interest in certain areas such as new product development, diversification, Increased productivity.

Plant Patent

Given for new varieties of plants

Moral-support network

Individuals who give psychological support to an entrepreneur

Professional-support network

Individuals who help the entrepreneurs in business activites

Role Models

Individuals whose example an entrepreneur can aspire to and copy

Proactiveness

Initiative and risk taking, competitive aggressiveness and boldness-particularly reflected in orientations and activities of top management

Trademark license agreements

Involve a franchising agreement

Copyright license agreement

Involve rights to use or copy books, software, music, photographs, plays, etc.

Dual process model of coping with negative emotions

Involves oscillation between a loss orientation and a restoration orientation

Turn-Key Projects

Method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners

Entrepreneurial Intentions

Motivational factos that influence individuals to pursue entrepreneurial outcomes

Intellectual Property

Patents, Trademarks, Copyrights, Trade Secrets

Sustainable Entrepreneruship

Preserving nature, life support, and community in the pursuit of perceived opportunities to: Bring future products, processes, and services into existence for gain

Political Risk Analysis

Prior to entering into business in another country, an assessment of that countrys political policies and its sustainability

Lifestyle Firm

Privately held; usually achieves only modest growth

Entrepreneuership

Process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independance

Innovativeness

Product and service innovation with emphasis on development and innovation in technology

Idea Generation

Production of ideas for something new in-products, services

Creativity

Production of ideas for something new that is also potentially useful

Utility Patent

Protection of new, useful and unobvious processes, machines, compositions of matter and articles of manufacture (20 year term)

Opportunity Recognition

Recognition that ideas are not only new and potentially useful, but also have the potential to generate economic value-an innovation

Business Opportunities

Situations in which new goods, services, and organizing methods can be introduced, and sold at greater than their cost of production

Patent license agreement

Specify how low the licensee would have access to the patent

Causal Process

Starts with a desired outcome and focuses on the means to generate that outcome

Effectuation Process

Starts with what one has (who they are, who they know, what they know) and selects among possible outcomes

Cognitive Adaptability

The extent to which entrepreneurs are dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them

Product Safety and Liability

The responsibility of a company to meet any legal specifications regarding a new product covered by the Consumer Product Safety Act

Self-Renewal

Transformation of an organization through renewal of the key ideas on which it is built

Structural similarities

Underlying mechanisms of the technology resemble the underlying mechanisms of the market

Gordon Method

When the individuals are unaware of the problem