Intro to Entrepreneurship Exam 1-Questions and Answers Graded A+

Intro to Entrepreneurship Exam 1-Questions and Answers Graded A+ What is Entrepreneurship? - ANSWER-Entrepreneurship is the process by which individuals pursue opportunities regardless of resources in their control 3 Important Features: - ANSWER-1. Pursue opportunities 2. Accumulation and configuration of resources "without regard to resources they currently control" 3. Entrepreneurship is a process The Entrepreneurial Process: - ANSWER-Step1: Decision to become an entrepreneur Step2: Developing Successful Business ideas Step3: Moving From an Idea to an Entrepreneurial Firm Step4: Managing and Growing an Entrepreneurial Firm 3 types of start-up firms: - ANSWER-1. Salary-Substitute Firms: Firms that basically provide their owner(s) a similar level of income to what they would be able to earn in a conventional job. 2. Lifestyle Firms: Firms that provide their owner(s) the opportunity ot pursue a particular lifestyle, ad make a living at it. 3. Entrepreneurial Firms: Firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control. Corporate entrepreneurship; Entrepreneurial intensity: - ANSWER-Is the conceptualization of entrepreneurship at the firm level All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial The position of a firm on this continuum is referred to as its entrepreneurial intensity. Entrepreneur vs. Inventor: - ANSWER-An inventor creates something new. An entrepreneur puts together all the resources needed - the money, the people, the strategy, and the risk-bearing ability to transform the invention into a viable business. Three General Approaches: - ANSWER-1. Observing Trends (See 4 environmental trends) 2. Solving a problem: Noticing a problem and finding a way to solve it. 3. Finding Gaps in the marketplace: a gap exists when a product / service is needed by a specific group of people but doesn't represent a large enough market to be of interest to mainstream retailers or manufacturers. Four Environmental Trends - ANSWER-1. Economic Forces 2. Social Forces 3. Technological Advances 4. Political and Regulatory Changes