Entrepreneurship Quiz #1

Scope

A choice about which customer groups to serve and how to serve them

Causal process

A process that starts with a desired outcome and focuses on the means to generate that outcome

Effectuation process

A process that starts with what one has, and selects upon possible outcomes

Technological uncertainty

Considerable difficulty in accurately assessing whether the technology will peformbabd whether alternate technologies will emerge and leapfrog over current technologies

Demand uncertainty

Considerable difficulty in accurately estimating the potential size of the market, how fast it will grow, and the key dimensions along which it will grow

"Me-too" strategy

Copying products that already exist and attempting to build and advantage through minor variations

Imitation strategies

Copying the practices of other firms

Uncertainty for customers

Customers may have considerable difficulty in accurately assessing whether the new product or service provides value for them

Cognitive adaptability

Describes the extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them

Bricolage

Entrepreneaurs making do by applying combinations of the resources at hand to new problems and opportunities

Sustainable entrepreneurship

Entrepreneurship focused on perserving nature, life support, and community (sustainability) in the pursuit of perceived opportunites to bring future products, processes, and services into existence for gain (entrepreneurial action) where gain is broadly construed to include economic and noneconomic benefits to individuals, the economy, and society (development)

Moral-support network

Individuals who give psychological support to an entrepreneur

Professional-support network

Individuals who help the entrepreneur in business activities

Role Models (mentors)

Individuals whose example an entrepreneur can aspire to and copy

Entrepreneurial thinking

Individuals' mental processes of overcoming ignorance to decide whether a signal represents an opportunity for someone is also an opportunity for them specifically, and/or processing feedback frim action steps taken

Emerging industries

Industries that have been newly formed and are growing

Entrepreneurial mind-set

Involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions

Liabilities of newness

Negative implications arising from an organization's newness

Error of commission

Negative outcome from acting

Error of omission

Negative outcome of not acting

New entry

Offering a new product to an established ir new market, offering an established product to a new market, or creating a new organization

Assets of newness

Positive implications arising from abd organization's newness

Market knowledge

Possession of information, technology, know-how, and skills that provide insight into a market and its customers

Technological knowledge

Possession of information, technology, know-how, and skills that provide insight into ways to create new knowledge

Comprehension questions

Questions designed to increase entrepreneurs' understanding of the nature of the environment

Connection tasks

Tasks designed to stimulate entrepreneurs to think about the current situation in terms of similarities to and differences from situations previously faced and solved

Reflection tasks

Tasks designed to stimulate entrepreneurs to think about their understanding and feelings as they progress through the entrepreneurial process

Strategic tasks

Tasks designed to stimulate entrepreneurs to think about which strategies are appropriate for solving the problem (and why) or pursuing the opportunity (and how)

Entrepreneurial resource

The ability to obtain, and then recombine, resources into a bundle that is valuable, rare, and inimitable

Entrepreneurial self-efficacy

The conviction that one can successfully execute the entrepreneurial process

Switching costs

The costs that must be borne by costumers if they are to stop purchasing from the current supplier and begin purchasing from another

Entrepreneurial action

The creation of new products/ processes and/or the entrt into new markets, which may occur through a newly created organization or within an established organzation

Perceived desirability

The degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes

Lead time

The grace period in which the first mover operates in the industry under conditions of limited competition

Resources

The inputs into the production process

Entrepreneurial intentions

The motivational factors that influence individuals to pursue entrepreneurial outcomes

Window of opportunity

The period of time when the environment is favorable for entrepreneurs to exploit a particular new entry

Risk

The probability and magnitude, of downside loss

Key success favors

The requirements that any firm must meet to successfully compete in particular industry

Entrepreneurial strategy

The set of decisions, actions, and reactions that first generate, and then exploit over time, a new entry

Entrepreneurial Opportunites

Those situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production

Broad-scope strategy

Thought of as taking a "portfolio" approach to dealing with uncertainties about the attractiveness of different market segments