Study Guide, Midterm 1
Dr. Michael Merz
Chapter 1: Introduction to Marketing in New Ventures
What are the challenges of the entrepreneurial environment
Liability of newness, Low financial resources, Demand for creativity and novelty,
Unique levels of uncertainty and ambiguity, Unexpectedness, and New ventures
as vehicle of personal values, dreams, and ideas.
What is entrepreneurship? What is an entrepreneur?
is the planning and taking calculated risks based upon
knowledge of the market, available resources or products, and a predetermined
measure of the potential for success.
is a person who creates a new venture in the face of risk and
uncertainty for the purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources to capitalize on them.
What are characteristics of entrepreneurs?
Desire for responsibility, Preference for moderate risk, Confidence in their ability
to succeed, Desire for immediate feedback, High level of energy, Future
orientation, Skilled at organizing, Value achievement over money, Some other
characteristics: High degree of commitment, tolerance for ambiguity, flexibility,
What is the difference between opportunity entrepreneur and necessity
Opportunity entrepreneurs are those who start businesses because they spot an
opportunity in the marketplace, compared to a necessity entrepreneur, those who
start businesses because they cannot find work any other way.
What is the difference between leapfroggers and jugglers?
Leap froggers are those who start a company, manage its growth until they get
bored, and then sell it to start another.
Jugglers or “parallel entrepreneurs” are
those who start and manage several companies at once.
What is a new venture?
start-up; small new enterprise/business/
1.) An undertaking that is dangerous, daring, or of uncertain
2.) A business enterprise involving some risk in expectation
What types of new ventures exist (salary-substitute, lifestyle, and entrepreneurial
Salary-substitute - Firms that basically provide their owner or owners a similar
level of income to what they would be able to earn in a conventional job