MGT 450 MT1 answers

MGT 450 MT1 answers - CH.1 Entrepreneurship: A Field, an...

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CH.1 Entrepreneurship: A Field, an Activity, and a Way of Life Define Entrepreneurship as a field of business. Entrepreneurship, as a field of business, seeks to understand how opportunities to create something new (e.g., new products or services, new markets, new production processes or raw materials, new ways of organizing existing technologies) arise and are discovered or created by specific individuals , who then use various means to exploit or develop them, thus producing a wide range of effects. Identify key activities that differentiate entrepreneurs from non-entrepreneurs. Identifying an opportunity that is potentially valuable in the sense that it can be exploited in practical business terms and yield sustainable profits. Exploiting or developing this opportunity . Being able to run a new business successfully after it comes into existence. Describe the process perspective of entrepreneurship. List and explain the major phases of this process. What are the activities involved in each phase? Entrepreneurship is a process that unfolds over time and moves through distinct but closely interrelated phases. Key phases in this process: o Recognition of an opportunity Opportunities for new ventures often emerge out of changes in a wide range of economic, technological, governmental, and social factors. Even though these trends and changes may seem, at first glance, to be related, successful entrepreneurs perceive meaningful patterns that point to potentially profitable business opportunities. The opportunity is the potential to create something new that comes from either macro factors, policies, new knowledge, new technology, or own individual discoveries. The greater the opportunity, the greater the reward. o Deciding to Proceed and Assembling the Essential Resources An initial decision to preceed – to do something active about the idea or opportunity. Specific individuals make this decision and act upon it. Entrepreneurs must assemble a wide array of required resources: o Basic information (about markets, competitors, environmental and legal issues) o Human resources (partners, initial employees) o Financial resources Gathering these resources is one of the most crucial phases of the process Making the linkage from the third person opportunity to first person.
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o Launching a New Venture Choose the legal form of the new venture, develop the new product or service, establish the roles of the top management team, etc. o Building Success and Managing Growth Two key factors: Developing effective strategies for encouraging issues relating to growth Management issues relating to growth (e.g. being able to attract, motivate, and retain high-quality employees; building effective relationships among founders of the new venture). o
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MGT 450 MT1 answers - CH.1 Entrepreneurship: A Field, an...

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