Business Chapter 6

Front 1

Define the term entrepreneur and distinguish among entrepreneurs, small-business owners and managers.

Back 1

Unlike many small-business owners, entrepreneurs typically own and run their businesses with the goal of building significant firms that ccreate wealth and add jobs. Entrepreneurs are visionaries. They identify opportunities and take the initiative to gather the resources they need to start their businesses quickly. Both managers and entrepreneurs use the resources of their companies to achieve the goals of those organizations.

Front 2

What tools do entrepreneurs use to create a new business?

Back 2

Entrepreneurs combine their ideas and drive with money, employees, and other resources to create a business that fills a market need.

Front 3

How do entrepreneurs differ from managers?

Back 3

Managers direct the efforts of others to achieve an organization's goals. The drive and impatience that entrepreneurs have to make their companies successful often hurts their ability to manage.

Front 4

Identify 4 different types of entrepreneurs.

Back 4

The 4 types of entrepreneurs are classical, serial, intrapreneurs, and change agents. A classic entrepreneur identifies a business opportunity and allocates available resources to tap that market. A serial entrepreneur starts one business, runs it, and then starts and runs additional businesses in succession. An intrapreneur is an employee who develops a new idea or product within an organizational position. A change agent is a manager who revitalizes an existing firm to make it a competitive success.

Front 5

Why do companies encourage intrapreneurs?

Back 5

Established companies need intrapreneurs to help develop new products, ideas, and commercial ventures.

Front 6

What do intrapreneurs and change agents have in common?

Back 6

Like intrapreneurs, change agents turn around and revitalize established firms to keep them competitive in today's marketplace.

Front 7

Explain why people choose to become entrepreneurs.

Back 7

People choose this kind of career for many different reasons. Reasons most frequently cited include desires to be one's own boss, to achieve financial success, to gain job security, and to improve one's quality of life.

Front 8

Are entrepreneurs more likely than employees to achieve financial success?

Back 8

While only 1 in 5 american workers is self employed, more than 2/3rds of all millionaires are self employed. Consequently, if you run your own business, you're more likely to achieve financial success.

Front 9

What factors affect the entrepreneur's job security?

Back 9

An entrepreneur's job security depends on the decisions of customers and investors and on the cooperation and commitment of the entrepreneur's own employees.

Front 10

Discuss conditions that encourage opportunities for entrepreneurs.

Back 10

A favorable public perception, availability of financing, the falling cost and widespread availability of information technology, globalization, entrepreneurship education, and changing demographic and economic trends all contribute to a fertile environment for people to start new ventures.

Front 11

To what extent is entreperneurship possible in different countries, and what opportunities does globalization create for today's entrepreneurs?

Back 11

More than 9 percent of adults worldwide are starting or managing a new business. As for globalization opportunities, entrepreneurs market their products abroad and hire international talent. Among the fastest growing small US companies, almost 2 of every 5 have international sales.

Front 12

Identify the educational factors that help expand current opportunities for entreperneurs.

Back 12

More than 100 US universities offer majors in entrepreneurship, another 73 offer an entrepreneurship emphasis, and hundreds more offer courses in how to start a business. Also, organizations such as the Kauffman Center for Entrepreneurial Leadership, Entreprep, and Students in Free Enterprise encourage and teach entrepreneurship.

Front 13

Describe current demographic trends that suggest new goods and services for entrepreneurial business.

Back 13

The aging of the US population, the emergence of Hispanics as the nation's largest ethnic group, and the growth of two income families are creating opportunities for entrepreneurs to market new goods and services.

Front 14

Identify personality traits that typically characterize successful entrepreneurs.

Back 14

Successful entrepreneurs share several typical traits, including vision, self-confidence, and optimism, tolerance for failure, creativity, tolerance for ambiguity, and an internal locus of control.

Front 15

What is meant by an entrepreneur's vision?

Back 15

Enterpreneurs being with a vision, an overall idea for how to make their business idea a success, and then passionately pursue it.

Front 16

Why is it important for an entrepreneur to have a high energy level and a strong need for achievement?

Back 16

Because start up companies typically have a small staff and struggle to raise enough capital, the entrepreneur has to make up the differece by working long hours. A strong need for achievement helps entrepreneurs enjoy the challenge of reaching difficult goals and promotes dedication to personal success.

Front 17

How do entrepreneurs generally feel about the possibility of failure?

Back 17

They view failure as a learning experience and are not easily discouraged or disappointed when things don't go as planned.

Front 18

Summarize the process of starting a new venture.

Back 18

Entrepreneurs must select an idea for their business, develop a business plan, obtain financing, and organize the resources they need to operate their start-ups.

Front 19

What are the 2 most important considerations in choosing an idea for a new business?

Back 19

2 important considerations are finding something you love to do and are good at doing and determmining whether our idea can satisfy a need in the marketplace.

Front 20

What is the purpose of a patent?

Back 20

A patenet protects the rights to a new invention, process, or product.

Front 21

What is seed capital?

Back 21

Seed capital is the money that is used to start a company.

Front 22

Explain how organizations promote intrapreneruship.

Back 22

Organizations encourage entrepreneurial activity within the company in a variety of ways, including hiring practices, dedicated programs such as skinkworks, access to resources, and wide latitude to innovate within established firms.

Front 23

Why would large companies support intrapreneurship?

Back 23

Large firms support intrapreneruship to retain an entrepreneurial spirit and to promote innovation and change.

Front 24

What is a skunkworks?

Back 24

A skunkworks project is initiated by an employee who conceives an idea and then recruits resources from within the company to turn that idea into a commercial product.

Front 25

Pacing program

Back 25

company initiated project that focuses on a few products and technologies in which the company provides financing, equipment, and people to suport the project.

Front 26

Entrepreneur

Back 26

person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.

Front 27

Classic entreprener

Back 27

person who identifies a business opportunity and allocates available resources to tap that market.

Front 28

Serial entrepreneur

Back 28

person who starts one business, runs it, and then starts and runs additional businesses in succession.

Front 29

Intrapreneur

Back 29

entrepreneurially oriented erson who develops innovations within the context of a large organization.

Front 30

change agent

Back 30

manager who revitalizes an established firm to keep it competative.

Front 31

Lifestyle entrepreneur

Back 31

person who starts a business to reduce work hours and create a more relaxed lifestyle.

Front 32

Debt financing

Back 32

borrowed funds that entrepreneurs must repay

Front 33

equity financing

Back 33

funds invested in new ventures in exchange for part ownership.

Front 34

venture capitalists

Back 34

business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share.

Front 35

angel investors

Back 35

wealthy individuals who invest directly in a new venture in exchange for an equity stake.

Front 36

intrapreneurship

Back 36

process or promoting innovation within the structure of an existing organization