Chapter 2
Which of the following statements about ideas and opportunities is accurate?
-An idea does not necessarily meet the criteria of an opportunity. -Every idea is an opportunity. -An opportunity is a thought, impression, or a notion. -An idea is the recognition of a problem that can be solved by a business.
All of the following are important economic forces to evaluate except ________.
-millennials entering the workforce -the disposable income of working women -baby boomers' spending on health care and consumer packaged goods -rising level of personal income
Which of the following statements about library and Internet research is false?
1 Libraries are utilized quite often as a source of information for generating business ideas. 2 The best ideas emerge when the general notion of an idea is merged with extensive library and Internet research. 3 A reference librarian can point out useful resources for a general area of interest. 4 Simply browsing through several issues of a trade journal on a topic can spark new ideas.
All of the following are examples of social trends except ________.
1 decreased consumer spending 2 aging of the population 3 increasing diversity of the population 4 increased focus on health and wellness
Which of the following statements of prior industry experience is not true?
1. Building a network of social contacts while working in a particular industry does not lead to identifying opportunities. 2. Working in an industry is the most significant way to gain insights about a particular industry's characteristics. 3. Studies show that prior experience in an industry helps entrepreneurs recognize business opportunities. 4. While prior industry experience may be preferable, it is not always necessary for start-up success.
Research results over time consistently suggest that somewhere between ____ and ____ percent of those who start businesses got their ideas through social contacts
40; 50
Which of the following is not one of the three approaches entrepreneurs use to identify an opportunity?
Advancing technology Observing trends Solving problems Finding marketplace gaps
Which of the following techniques do companies utilize to meet regularly to discuss needs, wants, and problems that may lead to new ideas?
Customer advisory boards
Which of the following is not one of the most important trends to follow?
Daily problems Economic forces Social trends Technological advances
_____________ is formally defined as the ability to notice things without engaging in a deliberate search.
Entrepreneurial alertness
____ in the marketplace are a source of business opportunities.
Gaps
_____________ is the stage of creativity during which a person considers an idea or thinks about a problem either consciously or unconsciously.
Incubation
____________ are often an underutilized source of information for generating business ideas.
Libraries
When considering the impact that entrepreneurial alertness has upon success, which of the following statements is most accurate?
People who have more knowledge of an area tend to be more alert to opportunities in that area than others. Alertness is largely an innate, hereditary skill. Many entrepreneurs do not believe they are more alert than others. The research findings on entrepreneurial alertness are conclusive that it is a requirement for success.
__________ is the most significant way to gain insights about a particular industry's characteristics.
Working in an industry
Day-in-the-life research uses ______
anthropology
A bug report is a popular technique that is used in classrooms to teach______
brainstorming
A popular technique used in classrooms to teach brainstorming is called the ______ report
bug
Problems can be recognized by observing the ______ that people encounter in their daily lives
challenges
An opportunity is anchored in a product or service that ________.
creates value for its buyers or end-users
Considering the amount that baby boomers spend on health care, travel, and consumer packaged goods is an example of a(n) ________ trend.
economic
Elon Musk, the founder of the electric car company Tesla and co-founder of the solar panel company SolarCity is credited with having a "sixth sense" that allows him to see opportunities that others miss. This sixth sense that Elon Musk has is called _______
entrepreneurial alertness
Jim likes to work out late at night and noticed that all the local gyms closed before 9:00 pm. Therefore, he opened his own 24-hour fitness center. This is an example of __________.
finding a gap in the marketplace
A ____________ is a gathering of 5 to 10 people who are selected because of their relationship to the issue being discussed.
focus group
Gio Franco wanted to explore the possibility of starting a party center for kids in his small town. To get an idea of the attractiveness of the idea, Gio invited six set of parents of young children to discuss what they liked and what they disliked about the options available for children's playtime. The group of parents assembled is a _______.
focus group
Brainstorming, focus groups, and library and Internet research are best described as approaches for ________________.
generating new ideas for products, services, and businesses
A(n) _________ does not necessarily meet the criteria of a(n) __________.
idea; opportunity
Network entrepreneurs _____________.
identify their ideas through social contacts
Focus groups usually ______________.
involve a group of people who are familiar with a topic
Usually, focus groups are conducted by trained ______
moderators
John and Andy identified their business idea through social contacts. John and Andy are ______ entrepreneurs.
network
The number one rule for a brainstorming session is that __________
no criticism is allowed
A favorable set of circumstances that creates a need for a new product, service, or business is referred to as a(n) _________.
opportunity
An idea may or may not meet the criteria of a(n) _______
opportunity
A(n) _____ is a favorable set of circumstances that creates a need for a new product, service, or business
opportunity
The process of perceiving the possibility of a profitable new business or a new product or service is referred to as ___________.
opportunity recognition
The Affordable Care Act that created new business opportunities to deliver care more efficiently would be an example of a(n) ____________.
political and regulatory change
If at any stage in the creativity process an entrepreneur gets "stuck" and cannot continue, the best choice is to return to the ___________ stage.
preparation
Opportunity recognition is best described as the ___________.
process of perceiving the possibility of a profitable new business or a new product or service
An opportunity is an idea that has the qualities of being all of the following except ________.
profitable durable timely attractive
An opportunity cannot be pursued until it's _______
recognized
Social networking sites aren't popular because they can be used to post information and photos on a website. They are popular because they allow people to connect and communicate with each other, which is a natural human tendency. This is an example of finding an opportunity by observing trends in _____.
social forces
People who build substantial ____________ will be more exposed to opportunities and ideas, which can lead to new business start-ups.
social networks
Jay Sorensen dropped a cup of coffee in his lap because the paper cup was too hot. This led Sorensen to invent an insulating cup sleeve and to start a companylong dash—Java Jacketlong dash—to sell it. Sorensen found his opportunity in ________.
solving a problem
Relationships characterized by frequent interaction of like-minded individuals are best described as ____________.
strong-tie relationships
The term ______ is a metaphor describing the time period in which a firm can realistically enter a new market.
window of opportunity
Starting in high school and all the way through college, Peter and his neighborhood pal, Winston have a relationship where each tends to reinforce insights and ideas the other already has. This is an example of ____ relationship
strong-tie