EEE 2023 EXAM 1 STUDY GUIDE
definition of entrepreneurship - Answers :the process by which individuals pursue
opportunities without regard to resources they currently control for the purpose of
exploiting future goods and services
reasons to become an entrepreneur - Answers :be your own boss, pursue your own
ideas, realize financial rewards
four primary characteristics of a successful entrepreneur - Answers :passion for the
business, product/customer focus, tenacity despite failure, execution intelligence
common myths about entrepreneurs - Answers :entrepreneurs are born, not made,
entrepreneurs are gamblers, entrepreneurs are motivated primarily by money,
entrepreneurs should be young and energetic, entrepreneurs love the spotlight
changing demographics - Answers :18-29= 17.5%, 30-39= 25%, 40-49= 24%, 50-59=
21%, 60+= 12.5%
steps in the entrepreneurial process - Answers :1. decision to become an entrepreneur,
2. developing successful business plans, 3. moving from an idea to an entrepreneurial
firm, 4. managing and growing an entrepreneurial firm
entrepreneurial mindset - Answers :opportunity recognition, creativity, responsible risk-
taking, self-awareness
risk-taking - Answers :refers to the tendency to engage in behaviors that have the
potential to be harmful or dangerous, yet at the same time provide the opportunity for
some kind of outcome that can be perceived as positive
risk-aversion - Answers :opposed to taking risks
domino effect - Answers :a cumulative effect produced when one event initiates a
succession of similar events
venture capitalist - Answers :entrepreneurship is the art of turning an idea into a
business
idea - Answers :a thought, an impression, or a notion
opportunity - Answers :a favorable set of circumstances that creates a need for a new
product, service, or business
opportunity gap - Answers :a problem
, window of opportunity - Answers :the time period in which a firm can realistically enter a
new market
three ways to identify an opportunity - Answers :observing trends, solving a problem,
finding gaps in the marketplace
endowment effect - Answers :people value a good, service, or anything value more
once they possess it
4 essential qualities of an opportunity - Answers :attractive, timely, durable, anchored in
a product, service, or business that creates or adds value for its buyer or end user
examples of companies started to solve a problem - Answers :iCracked, KaZam, Flings
Bins, Rover.com, GymFlow, Parking Panda, Uptown Cheapskate, Sir Kensington's
Ketchup,
environmental trends suggesting business or product opportunity gaps - Answers
:economic forces, social forces, technological advances, political and regulatory
changes
economic forces - Answers :help determine areas that are ripe for start-ups and areas
that start-ups should avoid
(ex.) a weak economy favors start-ups that help consumers save money -
GasBuddy.com
social forces - Answers :alter how people and businesses behave and set their priorities
(ex.) Life wear spoon, Jitterbug phone, pill pak, care linx
technological forces - Answers :advances in technology frequently create business
opportunities
(ex.) computer industry, internet, biotechnology, digital photography, sharing economy -
H20Audio
political action and regulatory changes - Answers :laws to protect the environment have
created opportunities for entrepreneurs to start firms that help other firms comply with
environmental laws and regulations
(ex.) OSHA, commercial drone industry
personal characteristics of of the entrepreneur - Answers :prior experience, cognitive
factors, social networks, creativity
"sixth sense" that entrepreneurs have - Answers :entrepreneurial alertness - the ability
to notice things without engaging in deliberate search
creativity - Answers :the process of generating a novel or useful idea
definition of entrepreneurship - Answers :the process by which individuals pursue
opportunities without regard to resources they currently control for the purpose of
exploiting future goods and services
reasons to become an entrepreneur - Answers :be your own boss, pursue your own
ideas, realize financial rewards
four primary characteristics of a successful entrepreneur - Answers :passion for the
business, product/customer focus, tenacity despite failure, execution intelligence
common myths about entrepreneurs - Answers :entrepreneurs are born, not made,
entrepreneurs are gamblers, entrepreneurs are motivated primarily by money,
entrepreneurs should be young and energetic, entrepreneurs love the spotlight
changing demographics - Answers :18-29= 17.5%, 30-39= 25%, 40-49= 24%, 50-59=
21%, 60+= 12.5%
steps in the entrepreneurial process - Answers :1. decision to become an entrepreneur,
2. developing successful business plans, 3. moving from an idea to an entrepreneurial
firm, 4. managing and growing an entrepreneurial firm
entrepreneurial mindset - Answers :opportunity recognition, creativity, responsible risk-
taking, self-awareness
risk-taking - Answers :refers to the tendency to engage in behaviors that have the
potential to be harmful or dangerous, yet at the same time provide the opportunity for
some kind of outcome that can be perceived as positive
risk-aversion - Answers :opposed to taking risks
domino effect - Answers :a cumulative effect produced when one event initiates a
succession of similar events
venture capitalist - Answers :entrepreneurship is the art of turning an idea into a
business
idea - Answers :a thought, an impression, or a notion
opportunity - Answers :a favorable set of circumstances that creates a need for a new
product, service, or business
opportunity gap - Answers :a problem
, window of opportunity - Answers :the time period in which a firm can realistically enter a
new market
three ways to identify an opportunity - Answers :observing trends, solving a problem,
finding gaps in the marketplace
endowment effect - Answers :people value a good, service, or anything value more
once they possess it
4 essential qualities of an opportunity - Answers :attractive, timely, durable, anchored in
a product, service, or business that creates or adds value for its buyer or end user
examples of companies started to solve a problem - Answers :iCracked, KaZam, Flings
Bins, Rover.com, GymFlow, Parking Panda, Uptown Cheapskate, Sir Kensington's
Ketchup,
environmental trends suggesting business or product opportunity gaps - Answers
:economic forces, social forces, technological advances, political and regulatory
changes
economic forces - Answers :help determine areas that are ripe for start-ups and areas
that start-ups should avoid
(ex.) a weak economy favors start-ups that help consumers save money -
GasBuddy.com
social forces - Answers :alter how people and businesses behave and set their priorities
(ex.) Life wear spoon, Jitterbug phone, pill pak, care linx
technological forces - Answers :advances in technology frequently create business
opportunities
(ex.) computer industry, internet, biotechnology, digital photography, sharing economy -
H20Audio
political action and regulatory changes - Answers :laws to protect the environment have
created opportunities for entrepreneurs to start firms that help other firms comply with
environmental laws and regulations
(ex.) OSHA, commercial drone industry
personal characteristics of of the entrepreneur - Answers :prior experience, cognitive
factors, social networks, creativity
"sixth sense" that entrepreneurs have - Answers :entrepreneurial alertness - the ability
to notice things without engaging in deliberate search
creativity - Answers :the process of generating a novel or useful idea
