Chapter 3 Entrepreneurship

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

1. List any valley one's personal skills sets. 2. Analyze the market and look for a gap or a need that is not being met effectively. 3. Compare one's ability to fill the identified gaps with the opportunity available.

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

A brief explanation of the idea. The business idea.

The founders of a business need to be intimately involved in the:

Funding of the business. Running of the business. Design of the business

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

Gap analysis

Which of the following are characteristics of a gap analysis methodology for a new venture using a chart?

It is a reasonably quick analysis. It requires minimal research.

___ is key in successfully starting a new business venture.

Making quick adjustments using the lean start up and evolution

High development costs, rapid expansion plans, high inventory needs are considered threats to:

Operational financing

An individuals hobbies and past work experience contribute to the individuals personal ___

Skill

With the needed ___, The founders would be faced with not holding any advantage over the competitors who have the necessary depth in the area.

Skill

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

The focus on a single business idea

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

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

Examining __ around A region, nation, or world That may not have reached a particular location is one way of identifying business opportunities or gaps.

Trends

The business owner whose business is both a(n) _____ and a(n) _____ is difficult to beat

Vocation. Avocation

Which of the following question should not be explored to identify additional skill sources?

What are my worst accomplishments in life?

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

Categories of analysis

Which category on the gap analysis chart would examine companies doing the same thing as the new potential business?

Competitors

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 are probable questions potential business owners should ask themselves regarding hobbies?

What specific skills are required of the hobby? What is it about the hobby that is exciting? What products/services were used in these hobbies?

The process involved in the gap analysis is more __ than ___.

Art; science

Which of following is not an example of a family experiences that build knowledge that can grow into a new business opportunity?

Attending SBA courses with your siblings

___ Is the creative process in which a group of individuals are brought together and asked to generate ideas related to a spacific topic, with little effort given to evaluate the potential of the ideas.

Brainstorming

The finance category on the gap analysis chart examines:

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

A gap ___ Is the relatively simple process of systematically examining the differences between what is expected and what occurs.

Analysis

The process of generating ideas will result in a list of three to five business ideas that:

Appear to be an opportunity. Match the founders skills.

A typical categories analyzed in a gap analysis include finance, time, skill, non-financial resources, and ___

Competitors

Why is discussing potential businesses with your family members an attractive way to identify business opportunities?

Family members know your abilities. Family members can provide an honest perspective. Family members know your disposition

Which of the following is a characteristic of a gap analysis methodology for a new venture?

It is intended to be completed by the entrepreneur or the entrepreneurial team.

One type of gap analysis, called ___, examines the opportunities in the marketplace side-by-side with the individual's ability to address those gaps.

Opportunity analysis

Each type of business started with required different ___ frames.

Time

A business that is profitably complex and involves managing a wide variety of details may be appropriate for individuals who are ____.

Detail oriented

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

Examine the marketplace for opportunities

Successful business ideas are determined by the following:

The creativity of the entrepreneur

True or False: and individuals professional background and hobbies are the main resources for new business idea

True

true or False: One skills from either educational training or experience does not have a critical impact on the direction of one's business

False

Which of the following sources of skills for a business is often the most overlooked?

Family experiences

The steps in the process of generating ideas do not occur in a(n) ___ Fashion but should occur in a(n) ___ manner

Linear; interactive

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

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

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

Order fulfillment. Internet-based businesses. Bookkeeping

In the context of non-financial resources, for a gap analysis, which of the following are not to be considered for a new business?

Special contact with customers. Special contact with suppliers. Physical location of the business.

The first step in entrepreneurship is:

The desire to own and operate a business

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

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

True or False: Passion for the industry is not required, as long as an entrepreneur have the necessary skill set.

False

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

Focus Time Financial investments

Which of the following is not a common source of entrepreneurial skills?

Genetics

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

Insufficient financial resources at founding

A(n) ___ that uses your education is a potential source of a business

Opportunity

Which type of gap analysis examine the opportunities in the marketplace side-by-side with the individual's ability to address those gaps?

Opportunity analysis

Which of the following contribute to personal skill sets?

Past work experience. Family history. Current work experience. Hobbies

All new businesses have an inherent amount of ___ associated with the starting and operating of a business

Risk

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

Skill set. Understanding of an industry. Competitive advantage.

An individuals work experience builds ____ sets that can help direct applicability to the pursuit of a new business

Skills

In hobbies and activities, individual develop _____ specific to the hobbies

Skills

Which of the following would be classified as threats to operational financing?

High inventory needs. High development cost. An entrepreneurial team with a low asset base. Rapid expansion costs.

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

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

Which of the following statements are true regarding skills?

Skills are relatively idiosyncratic to the individual. Skills are derived from our history. Skills are derived from hobbies.

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

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

Which of the following are questions and entrepreneurs should answer regarding work experience?

In what areas were you considered an expert? What skills were critical to the job you performed? In what businesses have you worked? What aspects of the job were most enjoyable?

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

A brief explanation of the business idea

Which of the following questions should be considered by entrepreneur when analyzing that nonfinancial resources category of a gap analysis for a new business?

What unique skills will be required to run the business? What you need capabilities provide the entrepreneur a competitive advantage?

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

Billing. Bookkeeping.

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

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