Entrepreneurship Chapters 1-6
Process by which individuals pursue opportunities without regard to the resources they currently control
Definition 1 of entrepreneurship
Endeavoring to take on a new business venture under calculated risk
Definition 2 of entrepreneurship
salary-substitute firm
Firms that basically provide their owner or owners a similar level of income to what they would be able to earn in a conventional job
Lifestyle firm
Firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make a living at it
be their own boss, pursue their own ideas, and pursue financial rewards
What are the three main reasons people decide to become an entrepreneur?
salary substitute, lifestyle, entrepreneurial
What are the three types of start-up firms?
Millenials
What demographic desires an entrepreneurship career but does not have the resources to start one?
creativity, drive, willingness to take risks
What does entrepreneurial behavior require?
The process of starting a new business and a mindset
What is entrepreneurship in this class?
corporate entrepreneurship
behavioral orientation exhibited by established firms with an entrepreneurial emphasis that is proactive, innovative, and risk taking
false
true or false: according to reliable statistics, 9 out of 10 businesses fail in their first few years of existence.
business model
A company's plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates.
product/customer focus
A defining characteristic of successful entrepreneurs that emphasizes producing good products with the capability to satisfy customers.
business plan
A written document that describes the nature of the business, its goals and objectives, and how they will be achieved.
to take advantage of an attractive opportunity
According to the Global Entrepreneurship Monitor (GEM) 2007 study, the majority of people in high-income countries are drawn to entrepreneurship:
passion for their business
An entrepreneur's belief that his or her business will positively influence people's lives; one of the characteristics of successful entrepreneurs.
moderate risk takers
Entrepreneurs who are often characterized as willing to assume a moderate amount of risk in business, being neither overly conservative nor likely to gamble.
execution intelligence
The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.
a passion for the business
The number one characteristic shared by successful entrepreneurs is
creative destruction
The process by which new products and technologies developed by entrepreneurs over time make current products and technologies obsolete; stimulus of economic activity.
Entrepreneurs are born, not made, entrepreneurs are gamblers, entrepreneurs are motivated primarily by money, entrepreneurs should be young and energetic, entrepreneurs love the spotlight
What are the five common myths regarding entrepreneurship?
Passion for the business, product/customer focus, tenacity despite failure, execution intelligence
What are the four main characteristics of a successful entrepreneur?
Innovative, risk taking, proactive
What are the three characteristics of entrepreneurial firms?
Innovation and job creation
What is the economic impact of entrepreneurial firms?
Step 1: Decision to become and entrepreneur Step 2: Developing successful business ideas Step 3: Moving from and idea to an entrepreneurial firm Step 4: Managing and growing an entrepreneurial firm
What is the entrepreneurial process?
45%
What percent of businesses survive five years?
12%
What percent of the U.S. population is starting a new business?
Women, minorities, seniors
Which demographics are changing in terms of becoming entrepreneurs?
salary-substitute
Which type of start-up firm is most common?
11.9
according to the global entrepreneurship monitor (GEM) 2015-2016 survey, about _____ percent of adults in the United States are either starting a business or are running a business that has been in existence for less than 3 1/2 years.
passion for the business, tenacity despite failure, product/customer focus, and execution intelligence
according to the textbook, the four characteristics of successful entrepreneurs are
lifestyle firms, salary-substitute firms, and entrepreneurial firms
according to the textbook, there are three types of start-up firms:
patience
according to the textbook, which is NOT a common characteristic of successful entrepreneurs? -tenacity -patience -product/customer focus -passion -execution intelligence
lifestyle firms
businesses that provide their owners the opportunity to pursue a particular lifestyle and earn a living while doing so
entrepreneurial firms
companies that bring new products and services to market by creating and seizing opportunities
Corporate Entrepreneurship
established firms with an orientation toward acting entrepreneurially practice this.
triggering event
event that prompts an individual to become an entrepreneur
Entrepreneurial firm
firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control
Business ethics and social responsibility, critical thinking, collaboration, data literacy
how does entrepreneurship facilitate career success?
value
relative worth, importance, or utility
salary-substitute firms
small firms that yield a level of income for their owner or owners that is similar to what they would earn when working for an employer
entrepreneurial intensity
the position of a firm on a conceptual continuum that ranges from highly conservative to highly entrepreneurial
entrepreneurship
the process by which individuals pursue opportunities without regard to resources they currently control
innovation
the process of creating something new, which is central to the entrepreneurial process
be their own boss, pursue their own ideas, and pursue financial rewards
the three primary reasons that people become entrepreneurs and start their own firms are to
entrepreneurs are tenacious
which of the following is NOT one of the five common myths about entrepreneurs? -entrepreneurs love the spotlight -entrepreneurs should be young and energetic -entrepreneurs are tenacious -entrepreneurs are born not made -entrepreneurs are gamblers
as high as 50 percent after four years
which of the following statements regarding survival rates of entrepreneurial firms in the United States is correct? -as high as 80 percent after four years -as high as 50 percent after four years -as high as 90 percent after four years -as high as 70 percent after four years -as high as 60 percent after four years