Intro Flashcards
Definition of Entrepreneurship
The activity of the discovery,
evaluation and exploitation of opportunities to create something new (e.g. products services markets production processes etc.)
by mobilizing resources
The Importance of Entrepreneurship
Entrepreneurs disrupt industries
Entrepreneurs create industries and Products
Creative Destruction
Process of industrial mutation by revolutionizing
economic structure through destroying old ones and creating new economic structures
Entrepreneurship and the wealth of nations
The greater a country’s entry rate density, the greater its GDP per capita
Definition of creativity
The generation of ideas insights or problem solutions
that are both novel and potentially useful
Creativity can be
- Reactive (Reaction to problems or challenges)
- Proactive (Having self initiative, not reacting to something)
The Entrepreneurial Process (four steps)
- Idea Generation
- Opportunity Development
- Venture Foundation
- Growth
What is a good idea?
Out of 3000 raw ideas usually only 1 leads to success
Evaluation of business ideas is not rational and always based on internal models
Success of an idea depends on countless factors such as Team, resources, timing etc
Sources of Opportunities
Both the underlying evolving knowledge base of science & technology as well as the structure of
market demand play central roles in innovation
Schnittmenge aus:
-Demand Pull
Trying to overcome scarce resources/ availability and focusing on customer needs
-Technology Push
Making use of new innovation and technologies
Factors Contributing to Opportunity identification (3)
- Creativity
- Knowledge
- Networks
Knowledge and Opportunity identification
Prior experience helps determine the discovery of
a particular opportunity
The role of social Networks
Social Capital = Family, friends, business partners, colleague etc
social Capital increases the odds of starting a
business by nearly 200%
What does PEST stand for?
Social Capital produces information on:
Political, Economic, Social Technological change
Opportunities from the Environment
Opportunities emerge from changing conditions in PEST (Politics Economics Society Technology)
Why do Opportunities pop up?
due to a juxtaposition or confluence of conditions which didn’t exist previously but are now present
6 Questions when explaining ideas to others
- Who is the customer?
- What is the problem that a product could solve for the customer?
- What is the benefit for the customer?
- What is the size of the market potential?
- What makes the own product better than competitors?
- How do you capitalize/profit?
