Entrepreneurship Test 1

What are the five stages of the creative process for an individual?

1. preparation 2. incubation 3. insight 4. evaluation 5. elaboration

What is a product opportunity gap?

The product opportunity gap is when an entrepreneur recognizes a problem and creates a business to fill it.

What are the five common myths of entrepreneurship?

1. Entrepreneurs are born not made. 2. Entrepreneurs are risk takers 3. Entrepreneurs are driven by money 4. Entrepreneurs should be young and energetic 5. Entrepreneurs love the spotlight

What are the four distinctive parts of the entrepreneurial process and what is the relationship among the parts?

1. Identification and evaluation of the opportunity 2. development of a business plan 3. determination of the required resources 4. management of the resulting enterprise.

What are the three primary reasons people become entrepreneurs?

1. They want to be their own boss 2. Pursue their own ideas 3. Pursue financial rewards

What are the qualities of an opportunity?

1. attractive 2. durable 3. timely 4. anchored in a product, service or business that creates or adds value for its buyer or end user.

What four environmental trends are most instrumental in creating business opportunity recognition?

1. economic forces 2. social forces 3. technological advances 4. political and regulatory action.

What are the four primary traits and characteristics of successful entrepreneurs?

1. passion for business 2. product/customer focus 3. tenacity despite failure 4. execution intelligence

What are the three main attributes of firms that pursue high levels of corporate entrepreneurship?

1. proactiveness 2. innovativeness 3. risk taking ability.

How is a focus group used to generate new business ideas?

A focus group is a group of 5 to 10 determined and consistent individuals of a firm, those who are well connected with the basic idea of the business and their job is to redefine that idea by discussing the topic in regular group discussion.

Bug report

A popular technique that is used in classrooms to teach brainstorming. To compile a bug report, students are instructed to list 50 to 75 conditions or "things" that "bug" them in their everyday lives.

What is an opportunity?

An opportunity is a favorable set of circumstances that creates a need for a new product or service.

What is creativity?

Creativity is the process of generating a novel or useful idea.

What is entrepreneurship?

Entrepreneurship is the act of taking an idea and seeking opportunities to bring such an idea into market.

Why is passion such an important characteristic of successful entrepreneurs?

For an entrepreneur, the key to success is doing what you love and the desire that is a result of passion.

What is the difference between a weak-tie and a strong-tie relationship? Which type of tie is most likely to help an entrepreneur find an idea and why?

I. Strong-tie relationships are defined as interaction with other compatible people II. Weak-tie relationships are defined as irregular interaction with other people III. Weak-tie relationships are better because it allows for more interaction with many different ideas.

What is the purpose of day-in-the-life research?

The day in the life research is a process in which the company routinely send teams of testers to the homes and businesses of its users to see how its products are working and to seek insights for new product ideas. This is to ultimately seek insights for new product ideas.

What did Joseph Schumpeter mean by the term creative destruction?

The term "creative destruction" entitles capitalism, socialism, and democracy to denote a process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one and creating a new one.

What key insights does the GEMS study provide us about entrepreneurship?

There has to be a strong business idea, good financial plan and effective execution to attain success.

What does evidence show us about the rate of failure associated with entrepreneurial ventures?

They are not necessarily correct. New businesses show a 39.8% survival rate after 6 years. Strategic planning and execution of any business model is proven to be successful as well.

Of the three primary reasons people be- come entrepreneurs, which one is given most commonly and why?

Wanting to be their own boss is the most common reason because entrepreneurs have their own career paths and ambitions to fulfill.

Why is a product/customer focus an important characteristic of successful entrepreneurs?

Product/customer focus is important because a business cannot stay ahead unless the needs and wants of the customer are met by the product.

How can an entrepreneur tell if a product opportunity gap exists?

Product opportunity gap can be recognized by identifying a product or service that people need and are willing to buy and not one the entrepreneur wants to make and sell.

Brainstorming

the process of generating several ideas about a specific topic. The approaches range from a person sitting down with a yellow legal pad and jotting down interesting business ideas to formal "brainstorming sessions" led by moderators that involve a group of people.