Entrepreneurial Management Chapter 1-4 Quiz

What type of entrepreunship is known as a turnkey operation?

Purchasing a franchise

What are the five skills most important to the practice of entrepreneurship?

1. Skill of play 2. Skill of experimentation 3. Skill of empathy 4. Skill of creativity 5. Skill of reflection

Skill of Reflection

Helps make sense of all of the other actions required of play, empathy, creativity, and experimentation Makes us aware of feelings of discomfort, helps us to critically analyze our own feelings & the knowledge we posses

Corporate social responsibility characteristics

-Peripheral to mission -Side show -A department -Seeks to reduce harm -Feel and look good -Stakeholder is the observer -Consequence-driven -Image-motivated

Entrepreneurship as a method

-A set of practices -Phases of learning -Iterative -Creative -Action focus -Investment for learning -Collaborative

Right-Brain Thinking components

-Big-picture oriented -Presents possibilities -Intuition -Emotional -Synthesizing -Spatial -Nonverbal processing -Drawing -Manipulating objects -Subjective -Creative -Experiential -Symbols -Images -Dreaming

Social entrepreneurship characterics

-Core to mission -Main event -The entire organization -Measures social impact -Do good -Stakeholder is the customer -Purpose-driven -Opportunity-motivated

Left-Brain Thinking components

-Detail oriented -Forms strategies -Logic -Rational -Analytical -Verbal-Quantitative processing -Talking -Writing -Objective -Linear -Directive -Words -Language -Reasoning

What makes a country entrepreneurial?

-Financial resources -Support from government -Entrepreneurship education -Research and development transfer -Commercial and legal infrastructure -Entry regulation -Physical infrastructure -Cultural and social norms

What are the cons to owning a franchise?

-Franchise fee to be paid up front -Royalties (percentage of sales) to be paid to franchisor every month -Strict franchisors' rules with no wiggle room -Requirement to pay a percentage of gross sales into the franchisor's marketing fund -Most products and supplies need to be purchased from the franchisor -Sale of franchise requires approval from the franchisor -Potential competition from other franchisees in the network

Improvisation Guidelines

-Improvisation is not just for actors or musicians -There's no such thing as being wrong -Nothing suggested is questioned or rejected (no matter how crazy it might sound!) -Ideas are taken on board, expanded, and passed on for further input -Everything is important -It is a group activity - you will have the support of the group -You can trust that the group will solve a certain problem -It's about listening closely and accepting what you're given -It's about being spontaneous, imaginative, and dealing with the unexpected

What are the components of deliberate practice?

-It requires high levels of focus, attention, and concentration -It strengthens performance by identifying weakness and improving on them -It must be consistent and be maintained for long periods of time -It must be repeated to produce lasting results -It requires continuous feedback on outcomes -It involves setting goals beforehand -It involves self-observation and self-reflection after practice sessions are completed

Entrepreneurship as a process

-Known inputs and predicted outputs -Steps to complete -Linear -Predictive -Planning focus -Expected return -Competitive

What does a franchisee sacrifice when by a franchise?

-Pays a lump sum to buy the franchise -Pays royalties -Must follow the franchise's regulations, rules, and codes

What are the pros of owning a franchise?

-Ready-made business systems to help the franchise to become operational right away -Formal training program (online modules, formal training class) after franchise agreement signed -Technology designed to help manage customers, and administrative tasks -Marketing/Advertising already in place to help launch your franchise -A whole franchisee network to reach out for help and advice

Defining characteristics of wicked problems

1. The problem is not understood until after the formulation of a solution 2. Wicked problems have no stopping rule 3. Solutions to wicked problems are not right or wrong 4. Every wicked problem is essentially novel and unique 5. Every solution to a wicked problem is a "one shot operation" 6. Wicked problems have no given alternative solutions

Myths of Entrepreneurship

1. Entrepreneurship is not reserved for startups 2. Entrepreneurs do not have a special set of personality traits 3. Entrepreneurship can be taught (it's a method that requires practice) 4. Entrepreneurs collaborate more than they compete 5. Entrepreneurs collaborate more than they compete 6. Entrepreneurs act more than they plan 7. Entrepreneurship is a life skill

What are the 6 main emotional roadblocks preventing individual from practicing creativity?

1. Fear 2. No appetite for chaos 3. Preference for judging over generating ideas 4. Dislike for incubating ideas 5. Perceived lack of challenge 6. Inability to distinguish reality from fantasy

General self-efficacy scale (GSES)

1. I can always manage to solve difficult problems if I try hard enough 2.If someone opposes me, I can find the means and ways to get what I want 3. It is easy for me to stick to my aims and accomplish my goals 4. I am confident that I could deal efficiently with unexpected events 5. Thanks to my resourcefulness, I know how to handle unforeseen situations 6. I can solve most problems if I invest the necessary effort 7. I can remain calm when facing difficulties because I can rely on my coping abilities 8. When I am confronted with a problem, I can usually find several solutions 9. If I am in trouble, I can usually think of a solution 10. I can usually handle whatever comes my way

Eight components of the practice of entrepreneurship:

1. Identify your desired impact on the world 2. Start with means at hand 3. Describe the idea today 4. Calculate affordable loss 5. Take small action 6. Network and enroll others in your journey 7. Build on what you learn 8. Reflect and be honest with yourself

What are the six different ways we can practice reflection?

1. Narrative reflection 2. Emotional reflection 3. Perceptive reflection 4. Analytical reflection 5. Evaluative reflection 6. Critical reflection

Self-Leadership/Behavior Focused Strategies Include:

1. Self-Cueing 2. Self-Observation 3. Self-Goal Setting 4. Self-Reward 5. Self-Punishment

What are the traditional steps of an entrepreneurship process?

1. Think of an idea 2. Do market research 3. Get some financial projections 4. Find a partner/team 5. Write a business plan 6. Get financing 7. Find space, build prototype, hire people 8. Bring your product/service to market 9. Manage the business 10. Plan an exit

Family Enterprise

A business that is owned and managed by multiple family members, typically for more than one generation

Venture philanthropy funding

A combination of financial assistance such as grants with a high level of engagement by the funder

Entrepreneurship

A discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences

Social consequence entrepreneurship

A for-profit venture whose primary market impact is social

Benefit Corporation (B-Corp)

A form of organization certified by the nonprofit B Lab that ensures strict standards of social and environmental performance, accountability, and transparency are met

Enterprising nonprofits

A form of social entrepreneurship where both the venture mission and the market impact are social purposes

Creation Logic

A form of thinking that is used when the future is unpredictable

Predictive Logic

A form of thinking that sees entrepreneurship as a linear process in which steps are followed and outcomes are -ideally- predictable

Deliberate Practice

A method of carrying out carefully focused efforts to improve current performance

"Habit loop"

A process by which our brain decides whether or not a certain behavior should be stored and repeated

Self-punishment (or self-correcting feedback)

A process that allows us to examines our own behaviors in a constructive way in order to reshape these behaviors

Self-reward

A process that involves compensating ourselves when we achieve our goals, these rewards can be tangible or intangible

Self-observation

A process that raises our awareness of how, when, and why we behave the way we do in certain circumstances

Self-Leadership

A process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures

Royalities

A share of the proceeds of a business from one party to another

Work Integration Social Enterprise (WISE)

A social enterprise whose mission is to integrate people who have been socially excluded into work and society through productive activity

Startup

A temporary organization in search of a scalable business model

Franchise

A type of license purchased by a franchisee from an existing business, to allow them to trade under the name of that business

Microloan

A very small, short-term loan often associated with entrepreneurs in developing countries

Corporate Entrepreneurship

Also known as Intrapreneurship, a process of creating new products, ventures, processes, or renewal within large organizations

Entrepreneur

An individual or a group who creates something new -- a new idea, a new item or product, a new institution, a new market, a new set of possibilities

Passion

An intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals

Hybrid model of social entrepreneurship

An organization with a purpose that equally emphasizes both economic and social goals

Tailored Financing

As in venture capital, venture philanthropists take an investment approach to determine the most appropriate financing for each organization. Depending on their own missions and the ventures they choose to support, venture philanthropists can operate across the spectrum of investment returns

Skill of Experimentation

Best described as acting in order to learn - trying something, learning from the attempt and building that learning into the next iteration

Social purpose ventures

Businesses created by social entrepreneurs to resolve a social problem and make a profit

Corporate social responsibility (CSR)

Describes the efforts taken by corporations to address the company's effects on environmental and social well-being in order to promote positive change

Skill of Empathy

Developing the ability to understand the emotion, circumstances, intentions, thoughts, and needs of others

Intermarche, imperfect vegetables sold at a discount by French supermarkets, to reduce food waste is an example of what type of entrepreneur?

Entrepreneurs inside

What is the main difference between corporate entrepreneurs and entrepreneurs inside?

Entrepreneurs inside can exist and function in any type of organization, big or small, including government agencies, nonprofits, religious entities, self-organizing entities, and cooperatives - these entrepreneurs need to gain inside support from senior managers or other team members for their initiatives

What are the survival rates of a family enterprise?

First to second generation <30% Second to third generation <50%

Skill of Play

Frees the imagination, opens up our minds to a wealth of opportunities and possibilities, and helps us to be more innovative as entrepreneurs

Nonfinancial Support

In addition to financial support, venture philanthropists provide value-added services such as strategic planning, marketing and communications, executive coaching, human resource advice, and access to other networks and potential funders

New Business Owners

Individuals who are former nascent entrepreneurs and have been actively involved in a business for over three months but less than three and a half years

Necessity-based Entrepreneurs

Individuals who are pushed into starting a business because of circumstance such as redundancy, threat of job loss, and unemployment

Potential Entrepreneurs

Individuals who believe they have the capacity and know-how to start a business without being burdened by the fear of failure

Nascent Entrepreneurs

Individuals who have set up a business they will own or co-own that is less than three months old and has not yet generated wages or salaries for the owners

Opportunity-based Entrepreneurs

Individuals who make a decision to start their own businesses based on their ability to create or exploit an opportunity, and whose main driver for getting involved in the venture is being independent or increasing their income, rather than merely maintaining their income

Wicked Problems

Large, complex social problems where there is no clear solution, where there is limited, confusing, or contradictory information available, and where a whole range of people with conflicting values engage in debate

Behavior Focused Strategies

Methods to increase self-awareness and manage behaviors particularly when dealing with necessary but unpleasant tasks

Constructive thought patterns

Models to help us to form positive and productive ways of thinking that can benefit our performance Includes identifying destructive beliefs and assumptions and reframing those thoughts through practicing self-talk and mental imagery

What is Mihaly Csikszentmihalyi known for?

Polarity of creative individuals, a table comparing personality traits and the characteristics commonly associated with left and right brain thinking

Skill of Creativity

Requires a general openness to the world and relates to unleashing our creative ability to create and find opportunities and solve problems

Habit

Sometimes unconscious pattern of behavior that is carried out often and regularly

Entrepreneurial Mindset

The ability to quickly sense, take action, and get organized under uncertain conditions

Improvisation

The art of spontaneously creating something without preparation

Growth Mindset

The assumption held by people who believe that their abilities can be developed through dedication, effort, and hard work These types of people think brains and talent are not the key to lifelong success, but merely the starting point

Fixed Mindset

The assumption held by people who perceive their talents and abilities as set traits These types of people believe that brains and talent alone are enough for success and go through life with the goal of looking smart all the time

Entrepreneurial self-efficacy (ESE):

The belief that entrepreneurs have in their own ability to begin new ventures

Creativity

The capacity to produce new ideas, insights, inventions, products, or artistic objects that are considered to be unique, useful, and of value to others

Effectuation

The idea that the future is unpredictable yet controllable

Theory of Effectuation

The idea that the future is unpredictable yet controllable and entrepreneurs can "effect" the future

Stakeholders

The people or groups affected by or involved with the achievements of the social enterprise's objectives

Established Business Owners

The people who are still active in business for over three and a half years

Total Entrepreneurial Activity (TEA)

The percentage of the population of each country between the ages of 18 and 64, who are either a nascent entrepreneur or owner-manager of a new business

Self-cueing

The process of prompting that acts as a reminder of desired goals, and keeps your attention on what you are trying to achieve

Self-goal setting

The process of setting individual goals for ourselves

Social Entrepreneurship

The process of sourcing innovative solutions to social and environmental problems

Earned-income activities

The sale of products or services that are used as a source of revenue generation

Serial Entrepreneurs

The type of entrepreneurs who start several businesses, whether simultaneously or one after the other

Serial Entrepreneurs (or Habitual Entrepreneurs)

The type of entrepreneurs who start several businesses, whether simultaneously or one after the other Example: Richard Branson- Founder of Virgin, first as a music retailer, then expanded into airlines, railways, media, banking, & more

Entrepreneurs Inside

The types of entrepreneurs who think and act entrepreneurially within organizations

Entrepreneurs practice a cycle of act-learn-build to encourage taking small actions in order to learn and build that learning into the next action. True or False?

True

Natural reward strategies

Types of compensation designed to make aspects of a task or activity more enjoyable by building in certain features, or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds

Organizational Capacity Building

Venture philanthropists focus on building the operational capacity and long-term viability of the organizations in their portfolios, rather than funding individual projects or programs. They recognize the importance of funding core operating costs to help these organizations achieve greater social impact and operational efficiency

High engagement venture of philanthropy

Venture philanthropists have a close, hands-on relationship with the social entrepreneurs and ventures they support, driving innovative and scalable models of social change. Some may take board places on these organizations, and all are far more intimately involved at strategic and operational levels than are traditional nonprofit funders

Multiyear Support

Venture philanthropists provide substantial and sustained financial support to a limited number of organizations. Support typically lasts at least 3-5 years, with an objective of helping the organization to become financially self-sustaining by the end of the funding period.

Performance Measurement

Venture philanthropy investment is performance-based, placing emphasis on good business planning, measurable outcomes, achievement of milestones, and high levels of financial accountability and management competence