Innovation and Entrepreneurship

Which of the following contribute to personal skill sets?

Family history Past work experience Hobbies Current work experience

Why is discussing potential businesses with family members an attractive way to identify business opportunities?

Family members know your abilities. Family members know your disposition. Family members can provide an honest perspective.

Why are hobbies a good skill source?

Hobbies require the development of specific skills. Individuals are passionate about their hobbies.

Which of the following statements are true regarding businesses based on the founder's hobby?

The entrepreneur may not enjoy the business or hobby as much as he or she enjoyed it when he or she began The entrepreneur will stick with the business through lean times. The entrepreneur develops a following of fellow enthusiasts.

All new businesses have an inherent amount of ______ associated with the starting and operation of the business.

risk

An individual's work experience builds ______ sets that can have direct applicability to the pursuit of a new business.

skill

Examining _______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps.

trends

The process involved in the gap analysis is more ____ than ________.

art science

The business owner whose business is both a(n) ________and a(n) _________ is difficult to beat.

avocation vocation

TRUE/FALSE: Family experiences are an often overlooked source of skills for a new venture.

TRUE

Successful business ideas are determined by the following:

The creativity of the entrepreneur

Which of the following are questions an entrepreneur should address regarding education?

Have you taken specialized training in any specific area? Have you attended any unusual education programs? What courses taken were particularly enjoyable?

Which of the following would be classified as threats to operational financing?

High development costs. An entrepreneurial team with a low asset base. Rapid expansion costs. High inventory needs.

Which of the following is a principal cause of new business failure?

Insufficient financial resources at founding.

Which of the following statements are true regarding education as it relates to skill sets?

Knowledge gained from formal education provides a skill set. Technology skills acquired through education can be particularly valuable. An opportunity that uses your education is another source of a business.

List the steps that are important to the development of a quality business idea. Start from the first or initial step.

List and evaluate one's personal skill sets. Analyze the market and look for a gap or a need that is not being met effectively. Compare one's ability to fill the identified gaps with an opportunity available.

__________ is key in successfully starting a new business venture.

Making quick adjustments using lean startup and evolution

Which of the following statements make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps?

Most successful entrepreneurs are too busy with their own business to pursue new ventures. Entrepreneurs have a keen eye for what businesses are needed in an area. Most successful entrepreneurs have great ideas.

Which type of gap analysis examines the opportunities in the marketplace side-by-side with the individual's ability to address those gaps?

Opportunity analysis.

A founder or founding team must have synergy, which is a combination of:

Skillset Understanding of an industry Competitive advantage

The first step in entrepreneurship is:

The desire to own and operate a business.

Each type of business started will require different _____ frames.

times

TRUE/FALSE: One's skills from either educational training or experience do not have a critical impact on the direction of one's business.

FALSE

Which of the following statements are true regarding skills?

Skills are derived from our history. Skills are derived from hobbies. Skills are relatively idiosyncratic to the individual.

What is the method used to identify an opportunity that exists between the demand for a product and the supply provided by firms in the market?

Gap analysis.

A ______________ is the relatively simple process of systematically examining the difference between what is expected and what occurs.

gap analysis

Once a skill analysis has been completed, the next step is to:

examine the marketplace for opportunities.

The nature of the effort required for an entrepreneur to carry out an effective due diligence analysis necessitates a

focus on a single business idea.

TRUE/FALSE: Passion for the industry is not required, as long as an entrepreneur has the necessary skill set.

FALSE

Which of the following are the characteristics of a gap analysis methodology for a new venture using a chart?

It requires minimal research. It is a reasonably quick analysis.

In the context of nonfinancial resources, for a gap analysis, which of the following are to be considered for a new business?

Special contacts with customers. Physical location of the business. Special contacts with suppliers.

A business that is procedurally complex and involves managing a wide variety of details may be appropriate for individuals who are

detail-oriented

What is included in the second column of the chart used in the gap analysis?

Categories of analysis.

Which of the following questions should NOT be explored to identify additional skill sources?

What are my worst accomplishments in life?

The desire to own and operate a business is the ______ step in entrepreneurship.

first

Which of the following questions should be addressed by an entrepreneur when reflecting on family experience?

Are there unique things your family does that others are interested in? What is your family history with new business ventures? What skill sets exist within your nuclear family?

Which of the following is NOT an example of family experiences that build knowledge and can grow into a new business opportunity?

Attending SBA courses with your sibling.

If you prefer to work extensively with people, in which of the following businesses should you probably NOT pursue a business opportunity?

Billing Bookkeeping

________ is the creative process in which a group of individuals are brought together and asked to generate ideas related to a specific topic, with little effort given to evaluation the potential of the ideas.

Brainstorming

Which category of the gap analysis chart would examine companies doing the same thing as the new potential business?

Competitors.

The founder(s) of business need to be intimately involved in the:

Design of the business Funding of the business Running of the business

If done well, the process of generating ideas will result in:

Ideas that match the founders' skills. A list of three to five business ideas. Ideas that appear to be an opportunity.

An individual's professional background and hobbies are excellent resources for new business ideas because:

The individual knows these domains very well. The individual can easily see the shortcomings in the current business offerings. The individual can see the current needs that are not being met.

Which of the following are true regarding the process of generating ideas?

This process typically requires interaction. The process typically requires consideration. The process typically requires iteration.

Entrepreneurs can examine business risk by considering three threats to business success. Those three threats are:

Threats to sales generation schemes. Threats to operational financing. Threats to profit margin.

Which of the following are probable questions potential business owners should ask themselves regarding hobbies?

What is it about your hobbies or activities that excite you? What were the specific skills that these hobbies or activities required? What products and services did you use in these hobbies or activities?

Without the needed skills, the founders would be faced with not holding any advantage over the ________ who have the necessary depth in the area.

competitors

Along with the business idea, what else should be included in the first column of the gap analysis chart?

A brief explanation of the business idea.

Which of the following support the rationale for starting a business idea generation process by analyzing the skill sets of the potential founders?

Pursuing opportunities without the requisite skill set wastes money. There are literally millions of opportunities. Pursuing opportunities without the requisite skill sets wastes time.

Which of the following are questions an entrepreneur should answer regarding work experience?

What skills were critical to the jobs you performed? In what areas would you be considered an expert? What aspects of the job were the most enjoyable? In what businesses have you worked?

Which of the following questions should be considered by an entrepreneur when analyzing the nonfinancial resources category of a gap analysis for a new business?

What unique capabilities provide the entrepreneur a competitive advantage? What unique skills will be required to run the business?

The initial analysis is a process of:

moving from three to five ideas to a single idea.