Auburn ENFB 3140 Exam 1 Study Guide 100% Correct

Auburn ENFB 3140 Exam 1 Study Guide 100% Correct Entrepreneurship A way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them. Startup A temporary organization in search of a scalable business model. Effectuation An entrepreneurial approach to taking quick action using resources you have available to get early traction on new ideas. The idea that entrepreneurs focus on creating their future rather than predicting it. T/F Entrepreneurship reserved for startups. False T/F Entrepreneurs have a special set of personality traits. False T/F Entrepreneurship can be taught (it is a method that requires practice). True T/F Entrepreneurs are not extreme risk takers. True T/F Entrepreneurs collaborate more than they compete. True T/F Entrepreneurs act more than they plan (they don't need a business plan to succeed). True T/F Entrepreneurship is not a life skill. False Corporate Entrepreneurship (Intrapreneurship) A process of creating new products, ventures, processes, or renewal within large organizations. They tend to explore new possibilities and seek ways in which the organization's current structure and process can enable innovation. Entrepreneurs Inside People who think and act entrepreneurially within different types of organizations. They can exist and function in any type of organization, big or small, including government agencies, nonprofits, religious entities, self-organizing entities, and cooperatives. Franchise A type of license purchased by an individual (franchisee) from an existing business (franchisor) that allows the franchisee to trade under the name of that business. Royalties A share of the income of a business paid by a franchisee to the franchisor. Social Entrepreneurship The process of sourcing innovative solutions to social and environmental problems. Benefit Corporation (B-Corp) A form of organization certified by the nonprofit B Lab that ensures strict standards of social and environmental performance, accountability, and transparency are met. To be certified as one of these, the organization is rated on how its employees are treated, its impact on the environment, and how it benefits the community in which it operates Family Enterprise A business that is owned and managed by multiple family members, typically for more than one generation. Serial Entrepreneurs People who start several businesses, whether simultaneously or one after another. T/F Entrepreneurship is more of a method than a process. True Deliberate Practice Carrying out carefully focused efforts to improve current performance. Method A systematic way of approaching a task. T/F An entrepreneurial venture tends to have lots of data and tools to predict outcomes. False Fixed Mindset The assumption held by people who perceive their talents and abilities as set traits. Growth Mindset The assumptions held by people who believe that their abilities can be developed through dedication, effort, and hard work. Entrepreneurial Mindset The ability to quickly sense opportunities, take action, and get organized under uncertain conditions. Metacognition Our ability to understand and be aware of how we think and the processes we use to think. Passion An intense positive emotion, which is usually related to entrepreneurs who are engaged in meaningful ventures, or tasks and activities, and which has the effect of motivating and stimulating entrepreneurs to overcome obstacles and remain focused on their goals. Habit A sometimes unconscious pattern of behavior that is carried out often and regularly. Self-Leadership A process whereby people can influence and control their own behavior, actions, and thinking to achieve the self-direction and self-motivation necessary to build their entrepreneurial business ventures. Behavior-Focused Strategies Methods to increase self-awareness and manage behaviors, particularly when dealing with necessary but unpleasant tasks. These strategies include self-observation, self-goal setting, self-reward, self-punishment, and self-cueing. Self-Observation A process that raises our awareness of how, when, and why we behave the way we do in certain circumstances. Self-Cueing The process of prompting that acts as a reminder of desired goals and keeps your attention on what you are trying to achieve. These cues might take the form of making lists or notes or having motivational posters on your wall. Self-Goal Setting The process of setting individual goals for ourselves. Self-Punishment A process that allows us to examine our mistakes before making a conscious effort not to repeat them. Self-Reward A process that involves compensating ourselves when we achieve our goals. These rewards can be tangible or intangible. Natural Reward Strategies Types of compensation designed to make aspects of a task or activity more enjoyable by building in certain features or by reshaping perceptions to focus on the most positive aspects of the task and the value it holds. Constructive Thought Patterns Models to help us to form positive and productive ways of thinking that can benefit our performance. These strategies include identifying destructive beliefs and assumptions and reframing those thoughts by practicing self-talk and mental imagery. Creativity The capacity to produce new ideas, insights, inventions, products, or artistic objects that are considered to be unique, useful, and of value to others. We are not born with it. What has a 2012 University of Utah study revealed about the left-brained/right-brained model? There is no evidence that one side of the brain was more dominant than the other in any given individual. Improvisation The art of spontaneously creating something without preparation. Entrepreneurial Self-Efficacy The belief entrepreneurs have in their ability to begin new ventures. Entrepreneurs who have the ability to effectively confront demands or stressors, and thus improve entrepreneurial performance will demonstrate this. Opportunity A way of generating value through unique, novel, or desirable products, services, and even processes that have not been previously exploited in a particular context. Analytical Strategies Actions that involve taking time to think carefully about a problem by breaking it up into parts, or looking at it in a more general way, in order to generate ideas about how certain products or services can be improved or made more innovative. Search Strategies Actions that involve using a stimulus to retrieve memories in order to make links or connections based on personal experience that are relevant to the current problem. (ex. thinking of how a clamshell opens when asked to design a door-hinge) Imagination-Based Strategies Actions that involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies. (ex. the Gillette team used imagination to come up with a new shampoo by imagining themselves as human hairs) Habit-Breaking Strategies Actions that involve techniques that help to break our minds out of mental fixedness in order to bring about creative insights. (ex. thinking about something you don't believe in to gain a different perspective) Relationship-Seeking Strategies Plans of action that involve consciously making links between concepts or ideas that are not normally associated with each other. Development Strategies Actions that involve enhancing and modifying existing ideas in order to create better alternatives and new possibilities. Interpersonal Actions that involve group members generating ideas and building on each other's ideas. (ex. brainstorming with a team) Find Pathway A pathway that assumes that opportunities exist independent of entrepreneurs and are waiting to be found. Search Pathway A pathway used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities. Effectuate Pathway A pathway that involves using what you have (skills, knowledge, abilities) to uncover an opportunity that uniquely fits you. Design Pathway A pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs. Alertness The ability some people have to identify opportunities. Prior Knowledge The information gained from a combination of life and work experience. Pattern Recognition The process of identifying links or connections between apparently unrelated things or events. Design Thinking A human-centered approach to innovation that brings together what people need with what is technologically feasible and economically viable. The first question asked is generally "what do people need?" Needs A lack of something desirable, useful, or required that are uncovered through the design thinking process. Divergent Thinking A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints. Convergent Thinking A thought process that allows us to narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential. Inspiration The first phase of design thinking, when you develop the design challenge and acquire a deep understanding of users. Involved two primary tasks: defining the challenge and learning about the users you are designing for. The problem or opportunity that stimulates the quest for a solution. Latent Needs Needs that we don't know we have. (ex. smartphones) Ideation The second phase of design thinking, which involves generating and developing new ideas to address needs based on observations made during the inspiration process. Implementation A process involving the testing of assumptions of new ideas to continuously shape them into viable opportunities that ultimately become the final project. Observation The action of closely monitoring the behavior and activities of users/potential customers in their own environment for greater empathetic understanding. Insight An interpretation of an observation or a sudden realization that provides us with a new understanding of a human behavior or attitude that results in the identification of a need. AEIOU Framework Acronym for activities, environments, interactions, objects, and users—a framework commonly used to categorize observations during fieldwork. Feedback Interview An interview conducted to get feedback on an existing product or service. Need-Finding Interview An interview conducted to better understand the problems or needs of people or validate what you think a need or problem may be. IDEO's Design Process Involves 3 main phases: inspiration, ideation, and implementation. Evidence-Based Entrepreneurship The practice of hypothesizing, testing, and validating to create a business model. Business Model Describes the rationale of how a new venture creates, delivers, and captures value. It includes a network of activities and resources that interact to deliver value to customers. Four Parts of a Business Model The offering, the customer, the infrastructure, and the financial viability. Offering What you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them. Customer Value Proposition (CVP) A statement that describes why a customer should buy or use your product or service. Customers Someone who pays for a product or service. People who populate the segments of a market served by the offering. "How will I maintain customer relations once they're established?" Infrastructure The resources (people, technology, products, suppliers, partners, facilities, cash, etc.) that an entrepreneur must have in order to deliver the CVP. Financial Viability Defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations. Points-of-Difference A type of value proposition that focuses on the product or service relative to the competition and how the offering is different from others on the market. Resonating-Focus A type of value proposition that describes why people will really like your product and focuses on the customers and what they really need and value. Product-Market Fit An offering that meets the needs of customers. Mass Market A large group of customers with very similar needs and problems. (ex. computers, soap, insurance, cars, etc.) Niche Market A small market segment consisting of customers with specific needs and requirements. (ex. Burton selling snowboard bindings) Segmented Market A market divided into groups according to customers' different needs and problems. (ex. banks providing different services to wealthier clients) Diversified Market Two or more customer segments with different needs and problems that bear no relationship to each other. (ex. Amazon went from selling books to literally everything) Multisided Market Markets with two or more customer segments that are mutually independent of each other. (ex. free newspapers need to cater to the readers and advertisers to turn profit) All-Benefits A type of value proposition that involves identifying and promoting all the benefits of a product or service to customer segments, with little regard for the competition or any real insight into what the customer really wants or needs. (not ideal) Business Model Canvas (BMC) A one-page plan that divides the business model into nine components in order to provide a more thorough overview. Lean Canvas An adapted version of the BMC that was created to better address the needs of startup entrepreneurs. (Begins with a problem rather than a value proposition.) Comsumers Customers become these once they actually use the product or service. Market A place where people can sell goods and services. Can also be a demand for goods and services. Supply Sellers who compete for customers in the marketplace. Demand Prospective customers' desire for a good or service. Market Opportunity The degree of customer or market demand for a specific product application. Product Application Goods or services created to meet a demand, thereby providing a solution to a customer problem. End Users The customers who will actually use your product. Influencers Customers with a large following who have the power to influence our purchase decisions, without actually needing to use the product themselves. Recommender People who evaluate your product and tell the public about it, such as bloggers or experts in an industry. Economic Buyers The customers who have the ability to approve large-scale purchases, such as buyers for retail chains, corporate office managers, and corporate VPs. Decision Makers Customers similar to economic buyers who have even more authority to make purchasing decisions as they are positioned higher up in the hierarchy. (ex. the CEO)