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16 Cards in this Set
- Front
- Back
Define entrepreneurship
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Process by which a person pursues a business opportunity without regard for the assets they do not posses.
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entrepreneurial opportunity
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Value-creating innovation with market potential
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Reasons to become an entrepreneur
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1) Be your own boss
2) Pursue your own ideas 3) financial rewards |
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Characteristics of successful entrepreneurs
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1) passion for the business
2) product/ customer focus 3) tenacity despite failure 4) execution intelligence |
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Myths about entrepreneurs
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1) gamblers
2) lazy 3) must be young and energetic 4) that they're born, not made 5) greedy |
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types of start-ups
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1) salary substitute
2) life-style 3) entrepreneurial firm |
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Sources of inspiration:
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1) work experience
2) frustrations 3) other entrepreneurs 4) travel and personal hobbies 5) educational background 6) contextual knowledge 7) experience as a consumer |
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Porter's 5 forces:
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1) potential entrants
2) bargaining power of suppliers 3) bargaining power of consumers/buyers 4) threat of substitutes 5) industry competitors/ existing firms |
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Types of trends and changes to be identified (in hopes of addressing these with a new business)
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1) social/ demographic trends
2) Macroeconomic/ industry trends 3) Technology trends 4) governmental/regulatory changes |
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Other types of new opportunities:
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1) developing specialized technologies
2) novel business model 3) follow the leader |
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What makes an idea viable?
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1) customer, product and competition
2) Industry and marketplace 3) Timing 4) Risk and reward |
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When evaluating risk and reward, what two major things are desired?
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1) large potential reward
2) Risk in mainly one area (limited risk) |
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Basic tests of variability:
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1) is the idea "doable"?
2) can a reasonable rate of return be earned? |
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define business model
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the aggregate of business decisions and trade-offs used by a company to earn profits
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What critical insights does the business model provide?
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1) cost drivers
2) revenue sources 3) investment size 4) critical success factors |
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what information is needed to analyze a business model?/
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1) financial statements
2) business plan 3) annual report 4) mission statement, strategic goals 5) press clippings and media kits 6) other sources |