MNE2601 - Introduction to Entrepreneurship and Small business management Exam Bank Solution Manual

MNE2601 - Introduction to Entrepreneurship and Small business management Exam Bank Solution Manual Opportunity - Answers An idea that is attractive, durable and timely and is anchored in a product or service that creates and adds value for the end user Entrepreneurship - Answers The emergence and growth of a new business Entrepreneurial Success factors - Answers - Passion - Locus of Control - Need for Independence - Need for Achievement - Risk taking and uncertainty - Creativity and innovation - Leadership - Good human relations - Positive Attitude - Determination and persistence - Persistent problem solving - Commitment Managerial Success factors - Answers - Planning - Knowledge of competitors - Mainly market oriented - Client service - High-quality work - Financial insight and management - Business knowledge and skills - The use of experts Push factors (A necessity: an entrepreneur starts a business because there is no other alternative.) - Answers - Unemployment - Job insecurity - Career limitations - Not fitting in with the organisation - Limitation of financial rewards in a conventional job - No other alternatives Pull factors (An opportunity: an entrepreneur starts a business to take advantage of an opportunity to work for himself or herself and to make more money.) - Answers - Independence - Achievement - Recognition - Personal development - Personal wealth Essential skills needed for an entrepreneur - Answers - Passion for the business - Tenacity despite failure - Confidence - Self-determination - Management of risk - Seeing changes as opportunities - Tolerance of ambiguity - Initiative and need for achievement - Detail orientation and perfectionism - Creativity - Ability to see the big picture - Self-efficacy - Enhancing social competence - Creating trust - Managing conflict - Exerting influence - Dealing with stress - Motivating factors Radical Innovation - Answers The result of a leapfrog or significant breakthrough in, for instance, the field of technology Incremental Innovation - Answers Gradual changes in products and technology on a daily bases. Components change from existing to new shapes Modular Innovation - Answers The system stays more or less the same, but the components of such a system changes or improves Architectural Innovation - Answers The configuration or system changes, but the components stay the same The entrepreneurial process - Answers 1. Identify and evaluate the opportunity 2. Develop the business plan 3. Determine the resources required 4. Start and manage the enterprise Potential Entrepreneurs - Answers Individuals who engage in the process of evaluating opportunities before making an exploitation goal decision Intentional (nascent) Entrepreneurs - Answers An individual who intends to pursue a business opportunity within the next three years Start-up (early-stage) entrepreneurs - Answers A potential or nascent entrepreneur becomes a start-up entrepreneur once they commence operations within the business Established Entrepreneur - Answers An entrepreneur who operates an established business that is older than three and a half years