Intro. To Entrepreneurship Test 1

Front 1

Define entrepreneurship

Back 1

Process by which a person pursues a business opportunity without regard for the assets they do not posses.

Front 2

entrepreneurial opportunity

Back 2

Value-creating innovation with market potential

Front 3

Reasons to become an entrepreneur

Back 3

1) Be your own boss
2) Pursue your own ideas
3) financial rewards

Front 4

Characteristics of successful entrepreneurs

Back 4

1) passion for the business
2) product/ customer focus
3) tenacity despite failure
4) execution intelligence

Front 5

Myths about entrepreneurs

Back 5

1) gamblers
2) lazy
3) must be young and energetic
4) that they're born, not made
5) greedy

Front 6

types of start-ups

Back 6

1) salary substitute
2) life-style
3) entrepreneurial firm

Front 7

Sources of inspiration:

Back 7

1) work experience
2) frustrations
3) other entrepreneurs
4) travel and personal hobbies
5) educational background
6) contextual knowledge
7) experience as a consumer

Front 8

Porter's 5 forces:

Back 8

1) potential entrants
2) bargaining power of suppliers
3) bargaining power of consumers/buyers
4) threat of substitutes
5) industry competitors/ existing firms

Front 9

Types of trends and changes to be identified (in hopes of addressing these with a new business)

Back 9

1) social/ demographic trends
2) Macroeconomic/ industry trends
3) Technology trends
4) governmental/regulatory changes

Front 10

Other types of new opportunities:

Back 10

1) developing specialized technologies
2) novel business model
3) follow the leader

Front 11

What makes an idea viable?

Back 11

1) customer, product and competition
2) Industry and marketplace
3) Timing
4) Risk and reward

Front 12

When evaluating risk and reward, what two major things are desired?

Back 12

1) large potential reward
2) Risk in mainly one area (limited risk)

Front 13

Basic tests of variability:

Back 13

1) is the idea "doable"?
2) can a reasonable rate of return be earned?

Front 14

define business model

Back 14

the aggregate of business decisions and trade-offs used by a company to earn profits

Front 15

What critical insights does the business model provide?

Back 15

1) cost drivers
2) revenue sources
3) investment size
4) critical success factors

Front 16

what information is needed to analyze a business model?/

Back 16

1) financial statements
2) business plan
3) annual report
4) mission statement, strategic goals
5) press clippings and media kits
6) other sources