Entrepreneurship Study Guide PDF

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1. What is the working definition we used for entrepreneurship? (5) a. The process by which individuals - either on their own or inside organizations pursue opportunities without regard to the resources they currently control 2. What are the key characteristics of the entrepreneurial mindset? (13) a. Innovative b. Value-Creating c. Growth-Oriented 3. What key societal benefits are associated with entrepreneurship? (8-10) a. Economic Growth b. New Industry Formation c. Job Creation 4. How does the SBA define a small business? (10) a. One with fewer than 500 employees 5. What are the 6 myths of entrepreneurship? (28-30) a. It takes a lot of money to start a business b. It takes a great idea c. The bigger the risk, the bigger the reward d. A business plan is required for success e. Entrepreneurship is for the young and reckless f. Entrepreneurship cannot be taught 6. What are the key pathways to entrepreneurship? (31-33) a. The home-based entrepreneur b. The serial or portfolio entrepreneur c. The nonprofit entrepreneur d. The corporate entrepreneur i. Opportunistic model ii. Enabler model iii. Advocate model iv. Producer model 7. What key intrinsic motivations are most frequently associated with entrepreneurs? (2728, 40) a. Passion b. Money c. Success d. Lifestyle e. Creating something that reflects their goals and values f. Being in charge of their lives 8. What is meant by the term serial entrepreneur? (32) a. An entrepreneur who starts one business and then moves on to start another 9. What is the difference between invention and innovation? (47, 59) a. Invention i. Discovering something that did not exist previously ii. Not directly associated with commercialization b. Innovation

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Finding a new way to do something or improving on an existing product or service ii. Concerned with the process of commercializing or extracting value from ideas 10. What are some sample activities that can assist with self evaluation for anyone considering an entrepreneurial path? a. Personality and Preferences Questionnaire b. Inventory of current skills c. Entrepreneurial Insights d. Personal Canvas e. Calculate Personal Value f. Preparing for Entrepreneurship (36-42) i. Find a Mentor ii. Build a Professional Network iii. Learn about Entrepreneurship iv. Understand Your Preferences v. Acquire New Skills vi. Study an Industry 11. Beyond being a founder or owner, what are some sample professional opportunities within the entrepreneurial ecosystem? (39) a. Key Angel Contact b. Key Production Contact c. Angel Investor d. Production Person e. Engineer f. Professional Service Provider g. Manufacturer h. Prototyper 12. What role does creativity play in opportunity finding? (55) a. Entrepreneurs create opportunities through via their actions, reactions, and experiments around new products, services, and business models b. Identify a problem in a market and seek a solution 13. When shaping entrepreneurial opportunity, what is most critical about problem definition? (55) a. Don’t kill the crazy ideas and rush to judgment; use Affirmative Judgement, which is looking for the strengths or positive aspects of a problem first 14. What is the difference between incremental vs disruptive innovation? (59) a. Incremental: Built on Existing Technology b. Disruptive: Obsolete previous technology or ways of doing things 15. What is a business model and how is it different than a business plan? a. Business Model: Blueprint (103) b. Business Plan: Plan of Action (229) 16. What is the role of collaboration and teams in the entrepreneurial process? (168-169) a. The intense effort required of a startup can be shared

b. Should any one member leave, it is less likely to result in the abandonment of the startup c. With a founding team whose expertise covers major functional areas - marketing, finance, operations - the new venture can proceed further before it will need to hire additional personnel d. A skilled founding team lends legitimacy to the new venture in the eyes of lenders, investors, and others e. The entrepreneur’s ability to analyze information and make decisions is improved because he or she benefits from the diverse expertise of the team, and ideas may be viewed and analyzed from several perspectives 17. What are the key components of a proper feasibility analysis? (113) a. Industry and Market/Customer b. Product/Service c. Founding Team d. Financial Needs Assessment 18. What are the key components of a well developed business model (what are the blocks of the canvas)? (104-109) a. Value Proposition b. Customer Segments c. Distribution Channels d. Strategic Partners e. Business Activities f. Resource Requirements g. Revenue Sources h. Cost Drivers 19. How do you calculate your personal business value? (408-411) a. Values i. Fair Market Value ii. Intrinsic Value iii. Investment Value iv. Going-Concern Value v. Liquidation Value vi. Book Value b. Two Venture Capital Models c. Divergence and Dilution 20. What are some activities that can help you identify your entrepreneurial purpose? a. 21. What is meant by the term first customer? (92) a. The one who makes the purchasing decision; the one who pays, not necessarily the end user 22. What is Porter's 5 Forces, and how is it integrated into the entrepreneurial process? (7782) a. Five Forces in an industry that affect the ultimate profit potential of a venture in terms of long-run return on investment

i. Barriers to Entry ii. Threat from Substitutes iii. Threat from Buyers’ Bargaining Power iv. Threat from Suppliers’ Bargaining Power v. Competitive Rivalry Among Existing Firms b. Used to determine the viability of entering a industry and to judge the feasibility of the new business concept c. business owner...