Test 1 SG Chapter 1 Input output method M C Outcomes of Entrep List 3 outcomes o Economic growth o New industry formation o Job creation Economic growth growth of technology o Increased competition o Technology growth Employment growth Increased productivity Increased productivity Creative destruction What is creative destruction give example o New technology makes old technology obsolete o Car destroyed horse and buggy industry Small business Entrep drive technology and a majority of jobs in the United States New industry formation o New industries are born when technological change produces a new opportunity that an enterprising entrepreneur seizes o Disruptive or metamorphic technologies that destroy previous technologies and create new industries display a different pattern of behavior o The pattern of growth shakeout stabilization and decline of industry can be interrupted at any time by the entry of another disruptive technology fill in the blank disruptive The nature of entrepreneurial start ups o An entrepreneurial venture brings something to the marketplace o Three primary characteristics memorize What are some political social economic things that affects of Entrep Innovative Value creating Growth oriented o 4 loko political o Old people social o Recession economy Businesses fail because of poor management Figue 1 5 slide 18 Ch 1 War Interest rate off charts Tech revolution Era of excess and take overs Information age com explosion Knowledge economy Biotech biomed Baby boomers retire o 1960s o 1970s o 1980s o 1990s o 2000s o 1 o 2 o 3 o 4 o 5 o 6 o 7 o Ch 2 7 myths of Entrepreneurship M C Entrepreneurs start businesses solely to make money It takes a lot of money to start a business It takes a great idea The bigger the risk the bigger the reward A business plan is required for success Entrepreneurship is for the young and reckless Entrepreneurship cannot be taught Pathway to Entrep slide 2 3 o The home based entrepreneur most sole proprietorship and s based businesses o The internet entrepreneur o The serial or portfolio entrepreneur serial buys and sells a lot of businesses portfolio owns minority stake in a lot of businesses o The traditional entrepreneur brick and mortor o The nonprofit entrepreneur not for profit they still make a profit o The corporate venture starts a business inside a business Preparing to be an entrep Short answer know 3 or 4 things o Find a mentor o Build a network o Learn about entrepreneurs o Identify reasons for wanting to own a business o Analyze personality and business preferences o Improve or acquire critical skills o Study an industry Do you have what it takes o Personality traits slide 2 7 Willing to sacrifice Management ability Business experience Optimism Strong interpersonal skills Strong leadership skills Strong organizational skills Intelligence Ch 3 Difference between idea and opportunity o Idea thought o Opportunity idea that has commercial potential way of making money The nature of creativity M C o Creativity as a process Invention process is not formulaic or linear Certain definable patterns and activities can occur in any creative process Connection Discovery Invention Application Challenges to creativity memorize all 3 o No time for creativity o No confidence o No creative skills Removing roadblocks M C o Design an environment to stimulate creativity m c Minimize distractions Devote time daily to quiet contemplation Develop a creative company culture Mix people up Spend time in the places that best promote your creative thinking o Keep track of ideas o Start with the familiar o Take advantage of a personal network o Return to your childhood o Think in opposites Sources of innovation S A o Customers o Newspapers and magazines o Observation o Demographic shifts o Unexpected news events o Trends and patterns of change o New government regulation o Emerging industries Technological trends o Human Genome Project o Nanotechnology o Wireless Technology Ch 4 Developing a business concepts Definantly S A define and list o A business concept is a concise description of an opportunity that contains four essential elements The customer definition The value proposition and compelling story The product service The distribution channel The primary customer o First customer you are going to sell to Value proposition what is it service It is often intangible o The compelling story answers the questions o The compelling story is the benefit that the customer derives from the product or Why the interest What problem does this solve Why value chain is important o It is how you get your product to the customer Business concept o The Product Service What does the customer need What is the team s core competency o The Distribution Channel How will the benefit be delivered to the customer Concept statement o Compelling o Problem and solution o 4 elements Customer Benefit Specific product service Method of distribution Concept quick tests m c o Am I really interested in this business opportunity o Is anyone else interested o Will people pay for what is being offered o Why me o Why now Effects internet had on value chain reread o Reduced transaction cost o disintermediation Characteristics of an effective distribution channel M C Inventory Ownership Member power Financing and payment Risk management Factors affecting choice of strategy S A o Costs o Market coverage o Speed and reliability What is a business model o 2 essential elements Creation of something unique Capture value get paid for it o How to make money from the products and services offered How will value be created for stakeholders How will competitive advantage be achieved How to sustain efficacy of the model over time Why do business models fail poor management o flawed logic o limited strategic choices o imperfect value creation and capture assumptions o incorrect assumptions about the value chain