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48 Cards in this Set
- Front
- Back
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What are the firm growth performance measures? (4) (5) |
FIRM - growth of the firm - continuity/survival of the firm - profitability of the firm - labor productivity of the firm
ENTREPRENEUR - personal income - happiness - pride - lifestyle - contributing to a better world |
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How do small businesses measure their performance? |
They use a hybrid and broad approach with financial and non-financial measures |
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What is the main challenge in measuring economic performance for small businesses? WHY? |
The main challenge is the interference between business interests and personal interests.
Because this adds personal income and wealth position and his/her family as proxies to performance. |
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With what tools do growth studies measure growth? (3) |
- indicators - formulae - time spans |
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What is the most frequently used growth indicator? |
Sales |
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What kind of formulae does Masurel approve, absolute or relative? |
Relative, since it is harder to interpret absolute figures if one doesn't know the firm and its figures |
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How should you choose an indicator, formula or time span? (4) |
- availability of data - meaningfulness of an approach - easiness to find data - sensitivity of data |
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What is CAGR? |
Compound Annual Growth Rate
[(Ending value/ Beginning value) 1/n] -1
where n is the given time span in years |
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When should you use CAGR? |
It is a good measure when a firm has high fluctuations in growth |
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What are the most important measures of growth? (2) (repetition) |
- Sales - Employment |
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Why is profitability no good measure for performance? (repetition) |
To much factors can influence profitability; taxes and entrepreneurs can define their own income |
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What are the three main streams in growth theory? |
- growth as an outcome - the outcome of growth - growth as a process |
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What sorts of growth are there? (3) Examples? |
- organic growth e.g. more sales, increasing overall customer base - acquisitive growth e.g. buying or selling firms - hybrid growth= none of the above e.g. licensing or franchising |
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What kind of SME growers are there? (4) |
- super absolute growers - super relative growers - erratic one shot growers - employment growers |
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- steady sales growers - acquisition growers - steady overall growers |
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What is the typical growth pattern for a SME? |
Ups and downs, not a smooth line. When youre small youre more sensitive to incidents. |
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What are the four attitudes towards growth? |
- proactive grower -> positive -> grown - reactive grower -> -+ positive -> need for external trigger - non grower -> negative -> lifestyle entrepr. - must grower -> doesn't matter -> needs to grow to survive |
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What are the motivations not to grow? (5) |
- desire for independence - managerial incompetences of the entrepr. - fear for administrative work - limited opportunities to grow - risk aversion |
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What is innovation according to schumpeter? |
The successful market introduction of something new |
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What are the difficulties of innovation according to Schumpeter? (3) |
- uncertainty - reluctance - antagonism |
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What are the six cases of innovation? (Schumpeter + 1) Examples? |
- new product or service e.g. bluray - new process e.g. ford - new market e.g. tablet - new position e.g. coca cola - new organizations e.g. social entr -> disabled people - new brand e.g. nike |
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What is closed innovation? |
The classical approach: successful innovations requires control. Rigid organizations -> castles |
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What is open innovation? |
Commercialize external and internal ideas by deploying outside pathways ( as well as in-house) to the market. Project/ coalitions -> temporary Not sector specific, not firm specific
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What has Greiner to do with open innovation? |
Open innovation --> LAST STAGE OF GREINER!! |
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When is open innovation useful? |
when in Crisis of internal growth/collaboration |
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What forms of open innovations are there? (3) |
- Inbound open innovations: not rely on own R&D inbound = external party adds something in your business as input
outside in process: integration of stakeholders
- Outbound open innovations: look for external organizations that are better suited to commercialize a technology. outbound = you have a product, somebody else sells it
inside out process = the external exploitation of ideas in different markets e.g. selling IP
The coupled process: insideout + outsidein by working in alliances with complementary companies. -> give and take are crucial for success.
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What is the triple Helix? What is its use? |
Collaboration between three sectors: research, private and public.
If they collaborate more successfully, they will be complementary in their approach. |
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Why should you collaborate in innovations? (5) |
- reduce costs - reduce risks - to achieve economies of scale - reduce time taken to develop and commercialize products - to promote shared learning |
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What is an Outsider? |
A voluntarily appointed outside board member. (Has a consultancy role, advice or supervision) |
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What do they offer? (4) |
- Business advice - start up assistance - developing effective networks - preparing the business plan |
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What are the two main influences of outsiders? |
- inspires entrepreneur towards innovative behavior - prevent entrepreneur being preoccupied with his daily business |
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What are the two best things that Outsiders have to offer? |
- A fresh pair of eyes - Access to networks |
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What are the three phenomena important for startups? |
- business incubators - business accelerators - university spinoffs |
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What is a business incubator? |
A organization which promotes innovation and start ups |
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What does a business incubator? (3) |
- they help enterprises to innovate - they drive creation of startups - they promote economic development through job and enterprise creation |
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What are the most important elements of business incubators? (4) |
- space & roof - access to networks - shared facilities - management assistance |
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What types of business incubators are there? (5) |
- business innovation centers - university business incubators - independent business incubators - corporate private incubators - green business incubators |
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What is a business accelerator? |
An organization that provide cohorts of selected nascent ventures seed investment, usually in exchange of equity, and limited duration of educational programming, including extensive mentorship and educational components. |
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What is the aim of a business accelerator? |
Assist its participants in achieving a higher chance of being successful. |
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What is the USP of a business accelerator? |
The program mentors |
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What is the most important success measurement of a business accelerator? |
The amount of funding raised by participants after completing the program. |
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What is a university spinoff? |
University spinoffs transform inventions developed from university research that are likely to remain unexploited otherwise.
other words: a firm started by a scientist. |
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What is the trend around university spinoffs? |
Researchers are increasingly interested in developing their own ideas instead of licensing it to external parties.
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What are the flaws of university spin-offs? (2) |
- They usually don't grow fast - They are often not more than research boutiques or consultancy firms |
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What are the typical developmental steps of a university spin-off? (5) |
- develop a concept model - develop a prototype - raise start up funding - develop business model - acquire clients |
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What is the potential conflict of university spin-offs? |
The conflict of business interests vs. academic interests.
Academic solutions aren't always applicable in real life contexts. -> startup case |
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What is valorization? |
Convert scientific knowledge towards commercial feasible products.
e.g. student assignment for startups at a university |
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What is the problem with outsiders?
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You have to give away independency and entrepreneurs dont like that |
