Entrepreneurship Exam 1
how would you explain Maliha's entrepreneurial journey
began with personal experience and sought a solution to the problem, gathered the resources she had (her uncle's expertise) and took action
family enterprising
business that is owned and run by more than one family member, usually from different generations
five elements of self-leadership
self observation self goal setting self reward self-punishment self-cueing
entrepreneurs inside
entrepreneurial employees within an org (can exist in any type of org, large or small unlike corporate which exists only in large companies)
ability to convey a compelling vision
entrepreneurs have to convince people that their vision is with pursuing
value innovation
entrepreneurs have to create value with the goods and services they offer
resource leveraging
entrepreneurs must be able to access and use resources that they don't own or control
functional fixedness
inability to see problems from a new angle
did you write a business plan
no things moved quickly; Kat took action and figured things out as she went along kat emphasized that it's important to have a strategy and a plan for your business but she believes that a formal business plan is not necessary because it will almost immediately change once you start working on the business
Saurabh Gupta
started at Daniel Funds, a nonprofit org focused on allocating scholarships to needy students identified the opportunity: the need for IT services at smaller nonprofits that cannot afford full-time IT staff. created Gyan-i Inc.,
managerial thinking
works best when managers face certain conditions and have the date and tools they need to make optimal decisions
entrepreneurship
way of thinking, acting, and being that allows people to find or create new opportunities and then act on them
common traits of successful entrepreneurs
they value autonomy they assume responsibility for their failures and successes they are intolerant of authority they are good salespeople they envision success but prepare for failure they have high self-confidence and believe in themselves they are pragmatic and optimistic
how do u handle bookkeeping
third party services like Stripe handle subscription-based products she did it herself at the beginning but hated it so turned over to an accountant who goes over bookkeeping, numbers, and plans to lower taxes
guerrilla tactics
unconventional, low-cost tactics that allow the entrepreneur to do more with less
benefit corporation
(B corp) for profit companies with a social goal apply with the nonprofit B Lab for voluntary certification
serial entrepreneurship
AKA habitual entrepreneurs people who start more than one business, either at the same time or consecutively
corporate entrepreneurship
AKA intrapreneurship involves creating new products, processes, ventures, or renewal within a large organization (Google, Lego, Apple etc)
self punishment
AKA self correcting feedback involves punishing oneself for not achieving a goal so as to not repeat bad behaviors (dont punish excessively to avoid hurting future performance)
how has COVID affected your business
COVID changed the marketplace in a way that convinced people that they needed Digital products and a way for them to market their business online
How risky is it to start an IT company when technology is changing rapidly
Gupta mitigated his risk by: -using existing pre-packaged software solutions rather than going through the time and expense of developing software "in house". even if technologhy changes and those solutions become obsolete, Gupta can quickly and cheaply switch to other pre-packages solutions -he minimized his up-front costs by bootstrapping. for example, he used space at a co-op rather than signing a lease or buying a building -at first he focused on inbound marketing, which was relatively inexpensive to sell
what ethical dilemma did Gupta face as he was still working for Daniels Fund
Gupta was stealing time away from his company by thinking about his future business and taking steps to get it started while he was still employed at Daniels Fund
how does Maliha's approach to life expemlify the entrepreneurial mindeset
Maliha didn't know anything about the health care market but that didn't hold her back. she took action she demonstrated the capacity for metacognition, the ability to be self aware about how she thinks. she knew what skills and resources she had and what skills she lacked and determined the best strategy. she also demonstrated passion
resilience
ability to deal with stress and disturbances and rebound or even thrive in the face of adversity
tenacity
ability to overcome difficulties and obstacles that impede the achievement of your goals
effectuation
he used resources he had and took small steps in order to create and control his future
passion
intense positive emotion that motivates entrepreneurs and keeps them focused on achieving their goals
managed growth company
one that gradually and conservatively builds over time
aggressive growth venture
one that promises above-average returns on investment because they expand rapidly
entrepreneurial self-efficacy
one's belief in his or her own ability to begin new ventures (can be increased through training and education)
what are some of the limitations that are currently preventing you from achieving your goals
procrastination, fear, doubt, distractions, laziness take action ASAP and dont be afraid of failure if you have a growth mindset, failure is just data
outbound marketing
promoting the business through advertising, cold calling, trade shows
startup
temporary org searching for a business model that is scalable
matecognition
the ability to be self-aware about how we think
creativity habit
the ability to develop new, unique, useful and valuable ideas, inventions, insights, products or artistic objects creative people are more persistent, adaptable, motivated, self-reliant, and open to experience
opportunity assessment
the ability to evaluate the relative attractive of an opportunity
Why are entrepreneurs seen as the unreasonable one?
they are unconventional and strive to innovate and create based on what they currently have. they find and exploit gaps in the marketplace and they develop solutions to fill in those gaps and create value for society.
constructive thought pattern strategies
improve performance by introducing positive and productive ways of thinking a person can increase his or her chance of success by using positive self talk or by visualizing themselves achieving success
at what point did you decide to give up your day job and go it on your own
"accidental entrepreneur" the point where she recognized there was an unmet need that she could exploit was when people DMd her on social media asking for her help on instructional design
ENT method
1. determine what impact you want to have on the world 2. start with what you have 3. describe the idea today 4. calculate your affordable loss 5. take small action 6. network and get others on board 7. build your learning
what truths about entrepreneurs does Gupta exhibit?
1. entrepreneurs are not wide-eyed risk takers 2. entrepreneurs collaborate more than they compete 3. entrepreneurs act more than they plan
self-leadership habit
ability to influence one's own actions, behavior, and thinking in order to achieve the self-motivation and self-direction required for success entrepreneurs are not directed or motivated by others so they have to be able to motivate themselves to act
imaginativeness
ability to produce novel, useful outcomes by relating previously unrelated objects creatively use the resources at their disposal to create valuable, new goods and services
how can you apply the entrepreneurial mindset to your life
adopt a growth mindset to control things that you once thought could not. be controlled this starts with the habit of self-leaderships, which can be practices and honed through self-observation, self goal setting, self reward, self punishment and self-cueing
entrepreneurial mindset
an ability to sense, take action, and organize quickly in an environment of uncertainty involves adaptability, self-regulation, and metacognition
what is your strategy for protecting your intellectual property
an attorney
buying a small mbusiness
an entrepreneur may buy a small business and take over its operations rather than starting from scratch
effectuation theory
approach to taking quick action using the resources you have rather than focusing on the resources you need the future is unpredictable but controllable stop trying to predict the future and start controlling it by creating their own futures with the resources they have
inbound marketing
attracting potential customers with online content that addresses their needs, leading them to call the company
how does Gupta's story exemplify the ent. method?
began with his impact statement (passion for making a difference). then with his means at hand (resources he was currently able to leverage), he defined the idea, took action while keeping in mind his affordable loss, learned from successes and failures, and then expanded his resources
3 major kinds of self-leadership habits strategies
behavior focused strategies natural reward strategies constructive thought pattern strategies
the ENT method embraces
both prediction and creation
entrepreneurial thinking
common in smaller organizations and is necessary in uncertain conditions when the entrepreneur does not have enough data to make an optional decision
lifestyle firm
company that supports the owner and perhaps a small group of others but has little growth opportunity
self reward
compensating oneself upon the achievement of a goal
types of entrepreneurship
corporate entrepreneurs inside franchise buying a small business social entrepreneurship family enterprising serial entrepreneurship
entrepreneurial mindset
created by habits of self-leadership, creativity, improvisation
improvisation
spontaneously creating something without preparation it is important because it allows us to rapidly sense, act, and change directions quickly in an uncertain world
skills you can develop through entrepreneurship
financial creative problem solving
focus, yet adapt
focus on your vision, but you need to be adaptable enough to make changes when they're necessary
Maliha Khalid
founder and CEO of Doctory, a Packistani company that helps to improve access to health care in that country the company provides a database of doctors who specialize in various areas as well as a phone-based consultation service staffed by doctors
Kat Dunn
founder and CEO of the Kat the CourseBuilder, a full-service course building agency where business owners and professionals package their years of experience into high level courses and programs the company helps entrepreneurs, coaches, content creators, and expert package their skillsets into online courses and Digital products that can be sold online
franchising
franchise is an agreement in which an individual (the franchisee) purchases a license from an existing business (the franchisor) that allows him or her to operate under that business' name
behavior-focused strategies
help people manage their behaviors by increasing self-awareness
natural reward strategies
involve reshaping perceptions or building in certain features to focus on the positive aspects of a task in order to make it more enjoyable
risk mitigation
involves actions that reduce either the risk or the potential impact of a negative outcome -financial risk -technology risk -customer acceptance risk -management risk
deliberate practice
involves carefully focused efforts designed to improve current performance
social entrepreneurshup
involves coming up with innovative solutions to social and environmental problems, such as water shortage, poverty, global warming, and lack of education
self-cueing
involves prompting oneself to take action such as by making lists or having motivational posters on the wall
do you still do instructional design work
kat has given up instructional design work so that she can focus on growing her business (her team of instructional designers would do the work)
fear
the most significant impact on one's ability to be creative because it leads to self doubt, insecurity, and discomfort
building and using networks
leverage their social skills to establish and maintain relationships with others who might help them in their careers and in their personal lives
process
linear step by step process to reach a desired end
the correct stereotype for entrepreneurs
low appetite for risk mitigate risk whenever possible
difference between managerial thinking and entrepreneurial thinking
managerial: prediction and decision-making under conditions of known risk entrepreneurial: creation when potential outcomes are unknown managers gather data, make a plan, and then take action entrepreneurs "act in order to learn" taking immediate action, learning from experience, and building on that experience
opportunity
means of generating value (and profit) through unique, novel, and desirable products, services, and processes that have not yet been exploited
what demographic is at the front when it comes to new venture creation
minorities and women
have you ever taken outside investment
no she developed her business organically without taking any outside investment for example, she did not need to spend money on a physical location or on inventory
self-efficacy
one's capacity to maintain confidence in his or her ability to accomplish a task or achieve a certain level of performance
important entrepreneurial skills
opportunity recognition opportunity assessment value innovation risk mitigation self-efficacy resource leveraging focus, yet adapt imaginativeness tenacity guerilla tactics resilience building and using networks ability to convey a compelling vision
what's the business's entity structure
originally organized as an LLC but it has since transitioned to an S Corporation
growth mindset
people assume that their abilities can be developed and improved through hard work, effort, and dedication (happier, more successful people who are likely to take on challenging tasks)
fixed minset
people assume that their talents and abilities are set traits that cannot be altered
create the future
phenomenon known as effectuation (put into force or operation)
differences between ENT as a process and ENT as a method
process has known inputs and predicted outputs while a method is a set of practices process is linear and predictive while a method is iterative and creative process focuses on planning while a method is iterative and creative process focuses on planning while a method focuses on action process consists of steps to complete while a method consists of phases of learning process is competitive while method is collaborative process focuses on expected return while a method focuses on investment for learning
self observation
raises one's awareness of how when and why they behave a certain way involves deliberately asking yourself questions about what you are and are not accomplishing, what is getting in the way and how you feel
survival venture
run by individuals who use it to meet their immediate needs ran in a way that puts food on the table
self goal setting
setting goals for oneself
what kind of entrepreneur is Gupta?
social entrepreneur as he is interested in helping non-profit orgs by providing them with IT solutions. he started a for-profit business while still having social goals in mind
mindset
someone's established set of attitudes that determines ho they see the world
habit
sometimes-unconscious tendency that is exhibited often and regularly
method
systematic way of approaching a task involves creating the future rather than predicting it (entrepreneurship should be viewed as a method not a process)
opportunity recognition
the ability to perceive changes or untapped possibilities that might be sources of profit for the venture -identifying gaps or "pain points" in the marketplace
do you use employees or independent contractors? do you have a physical office?
the company uses a combination of employees and independent contractors who all work remotely the employees and contractors are from all over the world
what motivates entrepreneurs to take action
the desire for financial freedom, creative freedom, fame, and control over one's life sometimes passion to make the world a better place
royalities
the franchisee pays the franchisor a lump-sum franchisee fee as well as a share of income
affordable loss
the maximum you're willing to lose financially, reputation ally, and otherwise
affordable loss
what you are willing to lose if you take action
benefits of the ENT method
you will act more quickly you will do the things you can do and try the things you cant you will be able to try more because the costs of trying are low you will fail sooner and gain better information to be used next time you will begin experimenting with new ideas at the same time
corridor theory
your first idea will probably not be perfect. by taking action you take the first step down a hallway where many other doors can open up. you ultimately adapt and take those doors to new opportunities