Entrepreneurship test 3
low innovation/High risk
Increase innovation;develop a competitive advantage, reduce risk, use business plan and object analysis, minimizing investment, reduce financing costs, franchise option, abandon venture?
High innovation/low risk
Move quickly, protect innovation, lock in investment and operating costs via control systems, contracts and other measures
Growth Stage
Often requires major changes in entrepreneurial strategy; competition and other market forces call for reformulation of strategies; transition from entrepreneurial on-person mindset to managerial team-oriented leadership
Prestart-up phase
Phase begins with an idea for the venture and ends when the doors are opened for business
Start-up phase
Phase commences with the initiation of sale activity and the delivery of products and services and ends when the business is firmly established and beyond shot-term threats to survival
Stabilization Stage
Result of both market conditions and the entrepreneur's efforts; increased competition, consumer indifference to entrepreneur's goods or services and saturation of market with host of "me too" look alikes; innovation is critical
lifestyle venture
a small venture in which the primary driving forces include independence, autonomy and control
Small profitable venture
a venture in which the entrepreneur does not want venture sales to become so large that he or she must relinquish equity or ownership position and thus give up control over cash flows and profits, which it is hoped will be substantial
Innovation or Decline
Business dies or acquires other innovative firms, ensuring growth
New Venture Development Stage
Consists of activities associated with the initial formulation of the venture; enterprises general philosophy, mission, scope and direction are determined in this stage
low innovation/risk
Defend present position, accept limited playback, accept limited growth
Startup Activities Stage
Encompasses the foundation work needed to create a formal business plan, search for capital, carry out marketing activities and develop an effective entrepreneurial team ; marketing and financial considerations
Poststart-up phase
phase lasts until the venture is terminated or the surveying organizational entity is no longer controlled by an entrepreneur
High innovation/risk
reduce risk by lowering investment and operating costs, maintain innovation, outsource high investment operations and joint venture options
SWOT analysis
strengths, weakness, opportunities and threats to a competitive analysis for a new venture
strategic planning
the primary step in determining the future direction of a business influenced by the abilities of the entrepreneur, the complexity of the venture and the nature of the industry
strategic positioning
the process of perceiving new positions that attract customers from established positions or draw new customers into the market
life-cycle stages
the typical life cycle through which a venture progresses, including venture development, startup, growth, stabilization and innovation or decline
High growth venture
when sales and profit growth are expected to be significant enough to attract venture capital money and funds raised through public or private placements
Innovation
defined as the creation of something new and different
bankruptcy
a legal process for insolvent debtors who are unable to pay debts as they become due. For business this includes Chapters 7, 11 and 13 of the federal bankruptcy code
entrepreneurial leadership
an entrepreneur's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization
