Exam 1 Study Guide

Exam 1 Study Guide - Introduction to Entrepreneurship Study...

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Introduction to Entrepreneurship Study Guide Exam 1: Chapter 1 – 5 Chapter 1 Difference between an inventor and an entrepreneur - inventor: creates something new - entrepreneur: puts together all the resources needed to transform the invention into a viable business What is Entrepreneurship? - Definition: The process by which individuals pursue opportunities without regard to the resources they currently control. - Entrepreneurial Behavior: identifying opportunities and putting useful ideas into practice. Typically requires creativity, drive and a willingness to take risks. Corporate Entrepreneurship - The conceptualization of entrepreneurship at the firm’s level. - All firms fall along a conceptual continuum that ranges from highly conservatives to high entrepreneurial. - The position of a firm on this continuum is referred to as its entrepreneurial intensive. - Entrepreneurial Firms vs. Conservative Firms o Entrepreneurial Firms: proactive, innovative, risk taking o Conservative Firms: take a more “wait and see” posture, less innovative, risk adverse 3 Primary Reasons People Become entrepreneurs and start their own firm: 1. Desire to be their own boss 2. Desire to pursue their own ideas 3. Financial Rewards 4 Primary Characteristics of Successful Entrepreneurs: 1. Passion for the Business - #1 characteristic shared by successful entrepreneurs - Derived from entrepreneur’s belief that business will positively influence people’s lives. 2. Product/Customer Focus - If the word consumer doesn’t focus at least once every 30 minutes you’re own the wrong track. 3. Tenacity despite Failure - new venture failure rate is naturally high - successful entrepreneurs preserve through setbacks and failures
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4. Execution Intelligence - The ability to translate thought, creativity, and imagination into action and measurable results Myths About Entrepreneurs: 1. Entrepreneurs are born not made 2. Entrepreneurs are Gamblers 3. Entrepreneurs are motivated primarily by money 4. Entrepreneurs should be young and energetic Types of Start-Up Firms: - Salary Substitute Firms - Lifestyle Firms - Entrepreneurial Firms Economic Impact of Entrepreneurial Firms: - Innovation - Job Creation - Globalization m Entrepreneurial Impact on Society - The innovations of entrepreneurial firms have a dramatic impact on society - Think of all the new products and services that make our life easier, enhance our productivity at work, improve health, and entertain in new ways Entrepreneurial Impact on Large Firms - Many entrepreneurial firms have built their entire business models around producing products and services that help larger firms become more efficient and effective 5 Steps of the Entrepreneurial Process: 1. Deciding to become an entrepreneur 2. Developing successful business ideas 3. Moving from an idea to an entrepreneurial firm 4. Managing and growing the entrepreneurial firm 5. Exit Strategy Chapter 2 What is an Idea? -
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Exam 1 Study Guide - Introduction to Entrepreneurship Study...

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