40 Multiple choice questionsWorth 80 pointsMostly stuff from class, some from the book, cases,over night express, craigs list, A1 bowling (his high score 260?)- definition of entrepreneurshipgrowth oriented as opposed to make money for the owner- figure 1.1 know it is a process of entrepreneurshupkey things you need to do are the inner circle, outer circle is the environment- outcomes of entreprenuershipeconomic growthnew industryjobs will occur- new industry formationborn when technological change produces a new opportunity that enterprising entrepreneur size.figure 1.3number of firms in the industryGDP share- figure 1.4entrpreneurs, with E- solo people or teamscomes within a corporation- I, intrpreneursthe better job you do in the start up the better the chances are for success. Don’t rush to get your product out.Industrymarketfeasibility analysis-figure 1.5know what each decade is all about60s a lot of large not a lot of small70s major industries were deregulatedtechnological revolutionietnaminternational competitiontermoil80s high interest rates due to mess of 70s.large companies downsmall companies up90s information age because of the internety2k peakdot com peak00scommercial peakchapter 2- 7 myths1.Entrepreneurs start businesses solely to make money- false, could be social entreprenuers, help society, independence2.It takes a lot of money to start a business- false, need motivation, access to people with money, contacts3.It takes a great idea- false, you can have a team4. The bigger the risk, the bigger the reward- if you file the process and do the analysis and feasibility you can reduce the risk by a lot.5. A business plan is required for success- it’s not neccary but it is when you want to go to a venture capitalist to give you money. Lower the risk to investors because it gets rid of the “unknown aspect”6. Entrepreneurship is for the young and reckless- old people can invest too7. Entrepreneurship cannot be taught- it is a process-Pathways to Entrpreneurship•The home-based entrepreneur: low cost if you do it out of your home•The internet entrepreneur: low cost•The serial or portfolio entrepreneur:Serial: starts one, gets it to a certain point and sells it off. They enjoy making a business. Guy in the Tallahassee democrat, likes to build programs and sells themPortfolio- starts one, keeps it and then starts another•The traditional entrepreneur- start one and go with it as far as you could go•The nonprofit entrepreneur- people who start non-profit•The corporate venturerinterprenuer- Table 2.1know the challenges, might have a question like all these are challenges except.- preparing to be an entrepreneur•Find a mentor- you can start doing this now•Build a network•Learn about entrepreneurs•Identify reasons for wanting to own a business•Analyze personality and business preferences•Improve or acquire critical skills•Study an industrythis is important so you can learn about it, work in it for hands on experienceChapter 3Creativitycreates useful ideas. Look at slide, creativity and innovationdifference between idea and business opportunitybusiness opportunity has commercial vaibility- nature of creativitycreativity as a process, wright brotherscreated something and now it works- challenges to creativity•No time for creativity•No confidence•No creative skills- removing the roadblaocks1.Design an environment to stimulate creativity–Minimize distractionsno texting–Devote time daily to quiet contemplationgive them a half hour off to go walk, go to the gym–Spend time in the places that best promote your creative thinkingride your bike–Develop a creative company culturereward people, like google. Have fun and get rewarded–Mix people upinstead of keeping all marketing people together mix themup2.Keep track of ideaswrite them down3.Start with the familiar4.Take advantage of a personal networkbusiness people, friends, family5.Return to your childhoodplay with toys6.Think in oppositesIf it is supposed to be this way how is it not supposed to be.- decision tree analysiswriting down makes you thinksources of innovation •Customers•Newspapers and magazines•Observation•Demographic shifts•Unexpected news events•Trends and patterns of change•New government regulation•Emerging industrieslook at new product slidechapter 4developing a business conceptA business concept is a concise description of an opportunity that contains four essential elements:1.The customer definition2.The value proposition and compelling storylike the elevator speech3.The product/service4.The distribution channelafter you made it how are you going to get it in the hands of the customer- the customer definition–The customer is the one who pays.focus effort and product on this–The end use customer is as important as the intermediary customer.- business concept•The Product/Service–What does the customer need?–What is the team’s core competency?if your good at sales•The Distribution Channel–How will the benefit be delivered to the customer?Value chain--- Suppliers-- E(ent) ---- Customerfrom Ent. - customer, distrbution, wholesalers, retailers, finance, trucking, airplanes (modes of transport)- concept quick testreduce risk by taking this test, once it is developed in the business concept. Ask yourself this:•Am I really interested in this business opportunity? If yes, who else is.•Is anyone else interested?with the other people interested.. who pay for it?•Will people pay for what is being offered?find people to pay•Why me?is it good for me?•Why now?Is it a good time in my lifeIf you find yourself saying no you should rethink this.- value chain: like the distribution channel above:•Upstream activities, those related to the production of a product or service, which may include raw materials, product development, manufacturing, and warehousing. S ----- E •Downstream activities, those associated with selling the product or service such as customer acquisition, sales transactions, and logistics. E ---- C - forces affecting the value chainThe Internet–Reduced transaction costs–Disintermediation- taking one or more intermediary outsince the internet has become big, we no longer need some