Entrepreneurship test 3

low innovation/High risk

Increase innovation;develop a competitive advantage, reduce risk, use business plan and object analysis, minimizing investment, reduce financing costs, franchise option, abandon venture?

High innovation/low risk

Move quickly, protect innovation, lock in investment and operating costs via control systems, contracts and other measures

Growth Stage

Often requires major changes in entrepreneurial strategy; competition and other market forces call for reformulation of strategies; transition from entrepreneurial on-person mindset to managerial team-oriented leadership

Prestart-up phase

Phase begins with an idea for the venture and ends when the doors are opened for business

Start-up phase

Phase commences with the initiation of sale activity and the delivery of products and services and ends when the business is firmly established and beyond shot-term threats to survival

Stabilization Stage

Result of both market conditions and the entrepreneur's efforts; increased competition, consumer indifference to entrepreneur's goods or services and saturation of market with host of "me too" look alikes; innovation is critical

lifestyle venture

a small venture in which the primary driving forces include independence, autonomy and control

Small profitable venture

a venture in which the entrepreneur does not want venture sales to become so large that he or she must relinquish equity or ownership position and thus give up control over cash flows and profits, which it is hoped will be substantial

Innovation or Decline

Business dies or acquires other innovative firms, ensuring growth

New Venture Development Stage

Consists of activities associated with the initial formulation of the venture; enterprises general philosophy, mission, scope and direction are determined in this stage

low innovation/risk

Defend present position, accept limited playback, accept limited growth

Startup Activities Stage

Encompasses the foundation work needed to create a formal business plan, search for capital, carry out marketing activities and develop an effective entrepreneurial team ; marketing and financial considerations

Poststart-up phase

phase lasts until the venture is terminated or the surveying organizational entity is no longer controlled by an entrepreneur

High innovation/risk

reduce risk by lowering investment and operating costs, maintain innovation, outsource high investment operations and joint venture options

SWOT analysis

strengths, weakness, opportunities and threats to a competitive analysis for a new venture

strategic planning

the primary step in determining the future direction of a business influenced by the abilities of the entrepreneur, the complexity of the venture and the nature of the industry

strategic positioning

the process of perceiving new positions that attract customers from established positions or draw new customers into the market

life-cycle stages

the typical life cycle through which a venture progresses, including venture development, startup, growth, stabilization and innovation or decline

High growth venture

when sales and profit growth are expected to be significant enough to attract venture capital money and funds raised through public or private placements

Innovation

defined as the creation of something new and different

bankruptcy

a legal process for insolvent debtors who are unable to pay debts as they become due. For business this includes Chapters 7, 11 and 13 of the federal bankruptcy code

entrepreneurial leadership

an entrepreneur's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization