Entrepreneurship

D - Describe:

This concept focuses on identifying opportunities and creating value by organizing resources under uncertainty. It emphasizes innovation, initiative, and ownership of outcomes rather than following existing structures.

E - Explain:

This process requires recognizing unmet needs and turning them into viable solutions. It involves risk-taking without guaranteed success or resources. It also plays a key role in economic growth and innovation.

C - Connect:

A founder notices inefficiencies in how people find local sports events. They design a platform to solve the problem despite uncertainty about adoption. The venture launches without knowing whether users will commit.

A - Apply:

Use terms like value creation, opportunity recognition, and calculated risk.

Draw a simple problem → solution → value diagram.

Mention lean startup or MVP testing.

Describe the nature of entrepreneurship (EN:039) (SP)

D - Describe:

This focuses on the responsibilities assumed by individuals who start and own ventures. These responsibilities extend beyond job descriptions and include full accountability for outcomes.

E - Explain:

Owners must make strategic, financial, and operational decisions simultaneously. They are responsible for allocating resources and managing uncertainty. As ventures grow, these responsibilities evolve but accountability remains.

C - Connect:

A business owner manages hiring, budgeting, vendor negotiations, and customer experience. As the company grows, some tasks are delegated. The owner remains responsible for performance.

A - Apply:

Say risk bearer, resource allocator, decision authority.

Reference role overlap in early-stage ventures.

Use the Pareto Principle (80/20) for prioritization.

Explain the role requirements of entrepreneurs and owners (EN:040) (SP)

D - Describe:

This addresses how moral principles guide decisions beyond legal requirements. It shapes how ventures treat customers, employees, and stakeholders.

E - Explain:

Ethical behavior builds trust and long-term sustainability. Short-term unethical actions may increase profit but increase reputational and legal risk. Entrepreneurs often face ethical choices under pressure.

C - Connect:

A founder must decide whether to disclose product limitations to customers. Transparency may slow early sales. Trust and brand reputation improve over time.

A - Apply:

Use integrity, transparency, stakeholder trust.

Connect ethics to brand equity.

Mention long-term vs short-term tradeoffs.

Describe the use of business ethics in entrepreneurship (EN:044) (SP)

D - Describe:

This focuses on identifying international opportunities suitable for smaller ventures. It highlights participation in cross-border trade without large-scale infrastructure.

E - Explain:

Small firms can leverage niche markets, digital platforms, or specialized products. International trade increases market reach and revenue potential. Barriers include regulations, logistics, and currency risk.

C - Connect:

A small company exports specialty equipment to overseas customers. Online platforms reduce entry barriers. The firm adapts pricing and logistics to foreign markets.

A - Apply:

Use niche markets, global reach, trade barriers.

Mention localization.

Tie to scalability.

Describe small-business opportunities in international trade (EN:041) (SP)

D - Describe:

This emphasizes the intentional search for unmet needs or inefficiencies. It prevents relying on assumptions or outdated ideas.

E - Explain:

Markets evolve due to technology, demographics, and behavior changes. Continuous searching keeps ventures relevant. Without it, businesses risk solving non-existent problems.

C - Connect:

An entrepreneur interviews users instead of assuming their needs. Patterns emerge from repeated feedback. These insights shape the venture concept.

A - Apply:

Say pain-point identification and latent demand.

Draw a current state vs desired state gap.

Mention customer discovery interviews.

Explain the need for entrepreneurial discovery (EN:001) (ON)

D - Describe:

This refers to structured methods used to uncover and validate ideas. It reduces uncertainty in early venture stages.

E - Explain:

Processes include observation, interviews, research, and testing. They replace assumptions with evidence. Iteration improves idea quality.

C - Connect:

A founder surveys users, tests prototypes, and refines the idea repeatedly. Feedback leads to pivots. Each iteration improves fit.

A - Apply:

Use build-measure-learn loop.

Say validated learning.

Mention problem-solution fit.

Discuss entrepreneurial discovery processes (EN:002) (ON)

D - Describe:

This evaluates worldwide trends that influence venture opportunities. These trends may be economic, technological, or social.

E - Explain:

Global trends reveal scalable opportunities beyond local markets. Early identification provides competitive advantage. Ignoring trends limits growth.

C - Connect:

A startup identifies global growth in digital communities. The business designs a platform adaptable across regions. Expansion becomes possible.

A - Apply:

Use PESTLE or STEEP analysis.

Say scalability and market expansion.

Draw trend → opportunity → venture.

Assess global trends and opportunities for business ventures (EN:003) (ON)

D - Describe:

This identifies situations where new ventures could be created. It focuses on recognizing unmet needs or inefficiencies.

E - Explain:

Opportunities emerge from gaps between customer expectations and current solutions. Timing and context matter. Not all ideas represent real opportunities.

C - Connect:

A founder notices long wait times in a service industry. Customers express dissatisfaction. A new solution is proposed.

A - Apply:

Use market gap, unmet need, value proposition.

Mention first-mover advantage.

Determine opportunities for venture creation (EN:004) (ON)

D - Describe:

This evaluates whether identified opportunities are attractive and realistic. It focuses on potential success rather than idea appeal.

E - Explain:

Assessment includes market size, competition, and resources. Some opportunities are attractive but infeasible. Evaluation prevents wasted investment.

C - Connect:

A business analyzes competitors and demand before committing resources. Financial projections are reviewed. The idea is refined or rejected.

A - Apply:

Use market attractiveness and competitive intensity.

Mention go/no-go decision.

Assess opportunities for venture creation (EN:005) (ON)

D - Describe:

This focuses on producing original ideas that could become ventures. Creativity and feasibility are both required.

E - Explain:

Ideas may originate from brainstorming, research, or observation. Quantity precedes quality. Refinement follows generation.

C - Connect:

A team brainstorms multiple solutions to one problem. Ideas are filtered using criteria. The strongest concept moves forward.

A - Apply:

Say divergent thinking → convergent thinking.

Mention idea screening.

Generate venture ideas (EN:006) (ON)

D - Describe:

This determines whether a proposed idea can realistically succeed. It evaluates practicality and sustainability.

E - Explain:

Feasibility examines financial, operational, and market constraints. Innovation alone is insufficient. This step reduces risk before scaling.

C - Connect:

A founder calculates whether expected revenue exceeds costs. Operational capacity is reviewed. The decision to proceed is made.

A - Apply:

Use break-even, unit economics, TAM/SAM/SOM.

Draw revenue vs cost curves.

Determine feasibility of venture ideas (EN:038) (ON)

D - Describe:

This identifies factors that must be addressed when planning a venture. It focuses on preparation before launch.

E - Explain:

Planning includes market, financial, operational, and legal considerations. Overlooking factors increases failure risk. Structured planning improves outcomes.

C - Connect:

A founder evaluates demand, startup costs, and competition. Risks are identified early. Plans are adjusted accordingly.

A - Apply:

Use planning assumptions.

Mention risk awareness.

Describe entrepreneurial planning considerations (EN:007) (ON)

D - Describe:

This explains structured tools used to evaluate and organize ideas. Tools help convert concepts into actionable plans.

E - Explain:

Common tools include business models, feasibility studies, and financial projections. They improve clarity and communication. Tools reduce uncertainty.

C - Connect:

A founder uses a planning framework to map revenue streams and costs. Weak areas are identified. Adjustments are made.

A - Apply:

Say business model framework.

Mention assumptions testing.

Explain tools used by entrepreneurs for venture planning (EN:008) (ON)

D - Describe:

This focuses on identifying everything needed to successfully launch a venture. It includes financial, human, physical, and legal requirements.

E - Explain:

Startups often fail due to underestimating what is required at launch. Assessing requirements helps avoid resource shortages. This step supports realistic planning and execution.

C - Connect:

A founder lists startup costs, staffing needs, technology, and licenses before opening. Gaps are identified early. The launch plan is adjusted to fit constraints.

A - Apply:

Use startup checklist, resource planning, constraints.

Mention realistic assumptions.

Draw a requirements map.

Assess start-up requirements (EN:009) (ON)

D - Describe:

This focuses on identifying threats that could negatively affect a new venture. These threats may arise internally or externally.

E - Explain:

Risks include financial, operational, market, and legal factors. Early identification allows mitigation strategies. Risk awareness improves decision quality.

C - Connect:

A startup identifies customer adoption risk, funding risk, and competition. Each risk is ranked by severity. Plans are created to reduce impact.

A - Apply:

Use risk categories and risk matrix.

Mention mitigation strategies.

Judges like structured risk thinking.

Assess risks associated with venture (EN:010) (ON)

D - Describe:

This identifies outside support systems that assist entrepreneurs during development. These resources supplement internal capabilities.

E - Explain:

External resources reduce knowledge gaps and financial strain. They may provide expertise, funding, or guidance. Effective use improves survival rates.

C - Connect:

A founder seeks mentorship, grants, and professional services. These resources accelerate development. Internal limitations are reduced.

A - Apply:

Use mentors, accelerators, advisors.

Mention leveraging expertise.

Describe external resources useful to entrepreneurs during concept development (EN:011) (ON)

D - Describe:

This evaluates whether internal capabilities are sufficient for development. It determines when outside help is necessary.

E - Explain:

Entrepreneurs cannot possess all skills. External resources fill gaps efficiently. This prevents costly mistakes.

C - Connect:

A founder realizes legal and financial expertise are missing. External professionals are engaged. Development proceeds smoothly.

A - Apply:

Use core competencies.

Mention cost-benefit tradeoff.

Assess the need to use external resources for concept development (EN:012) (ON)

D - Describe:

This focuses on choosing methods to protect original ideas and innovations. Protection preserves competitive advantage.

E - Explain:

Without protection, competitors may replicate ideas. Strategies depend on the type of innovation. Protection supports long-term value.

C - Connect:

A startup secures brand identity and proprietary designs. Legal protections are implemented. Market position is strengthened.

A - Apply:

Use patents, trademarks, trade secrets.

Mention barriers to entry.

Select strategies to protect intellectual property (EN:013) (ON)

D - Describe:

This organizes a venture idea into a structured planning document. It communicates how the business will operate and grow.

E - Explain:

Business plans align goals, strategy, and financial projections. They support decision-making and funding. Clear structure improves execution.

C - Connect:

An entrepreneur prepares a document outlining operations, marketing, and finances. Stakeholders review it. Feedback refines the plan.

A - Apply:

Mention executive summary, financial projections.

Judges like clear structure.

Use components of business plan to define venture idea (EN:014) (ON)

D - Describe:

This explains how ventures obtain funding to launch operations. Funding supports early growth and stability.

E - Explain:

Sources include personal capital, loans, and investors. Each source has tradeoffs. Proper funding supports execution.

C - Connect:

A founder secures startup capital through savings and a small loan. Funds are allocated carefully. Growth begins.

A - Apply:

Use capital acquisition, funding mix.

Mention runway.

Describe processes used to acquire adequate financial resources for venture creation/start-up (EN:015) (ON)

D - Describe:

This focuses on choosing appropriate funding sources. Selection impacts control and risk.

E - Explain:

Debt requires repayment while equity dilutes ownership. Entrepreneurs must balance flexibility and obligation. The wrong choice creates strain.

C - Connect:

A founder chooses between borrowing money or giving up equity. Long-term implications are evaluated. A strategic choice is made.

A - Apply:

Use debt vs equity.

Mention control vs capital tradeoff.

Select sources to finance venture creation/start-up (EN:016) (ON)

D - Describe:

This determines how many people and what skills are needed. Human capital supports operations.

E - Explain:

Staffing too early increases costs. Staffing too late limits growth. Balanced planning improves efficiency.

C - Connect:

A startup identifies roles critical to launch. Non-essential roles are delayed. Costs are controlled.

A - Apply:

Use human capital planning.

Mention scalability.

Explain factors to consider in determining a venture's human-resources needs (EN:017) (ON)

D - Describe:

This evaluates whether hiring employees is appropriate. Timing affects cost and productivity.

E - Explain:

Hiring adds capacity but increases expenses. Entrepreneurs must assess workload and cash flow. Strategic hiring supports growth.

C - Connect:

A founder delays hiring until revenue stabilizes. Contractors are used temporarily. Risk is reduced.

A - Apply:

Mention fixed vs variable labor costs.

Use break-even awareness.

Explain considerations in making the decision to hire staff (EN:018) (ON)

D - Describe:

This evaluates equipment and assets needed for operations. Capital resources support delivery of value.

E - Explain:

Decisions involve cost, capacity, and flexibility. Overinvestment wastes resources. Underinvestment limits output.

C - Connect:

A business chooses leasing instead of purchasing equipment. Flexibility is preserved. Costs are controlled.

A - Apply:

Use capital efficiency.

Mention lease vs buy analysis.

Describe considerations in selecting capital resources (EN:019) (ON)

D - Describe:

This identifies physical and financial assets required to operate. These assets support core activities.

E - Explain:

Without proper resources, operations stall. Identifying needs ensures readiness. Planning prevents delays.

C -Connect:

A startup lists equipment, facilities, and technology needed. Gaps are addressed. Operations begin smoothly.

A - Apply:

Use resource inventory.

Mention operational readiness.

Identify capital resources needed for the venture (EN:020) (ON)

D - Describe:

This compares the costs of resources to their expected benefits. It supports rational investment decisions.

E - Explain:

Not all resources deliver equal value. Entrepreneurs must prioritize high-impact investments. This improves efficiency.

C - Connect:

A founder compares marketing spend against customer acquisition. Low-return spending is cut. Profits improve.

A - Apply:

Use cost-benefit analysis.

Mention ROI thinking.

Assess the costs/benefits associated with resources (EN:021) (ON)

D - Describe:

This establishes financial systems for managing money. Banking procedures support control and transparency.

E - Explain:

Proper systems prevent errors and misuse. They support tracking and compliance. Structure improves credibility.

C - Connect:

A venture opens dedicated accounts and sets approval rules. Transactions are tracked. Financial clarity improves.

A - Apply:

Mention financial controls.

Use segregation of duties.

Establish banking procedures (EN:042) (ON)

D - Describe:

This uses outside expertise to complement internal skills. It improves decision quality.

E - Explain:

Entrepreneurs cannot master every domain. External support accelerates learning. It reduces costly mistakes.

C - Connect:

A founder consults legal and technical experts. Core focus is maintained. Outcomes improve.

A - Apply:

Use strategic outsourcing.

Mention focus on core strengths.

Use external resources to supplement entrepreneur's expertise (EN:022) (ON)

D - Describe:

This explains why managing a venture involves many interconnected functions. Complexity increases with scale.

E - Explain:

Operations, finance, and marketing must align. Poor coordination creates inefficiencies. Systems thinking is required.

C - Connect:

A business struggles when growth outpaces systems. Coordination improves through structure. Performance stabilizes.

A - Apply:

Use systems thinking.

Mention cross-functional alignment.

Explain the complexity of business operations (EN:023) (ON)

D - Describe:

This evaluates whether potential rewards justify uncertainty. It emphasizes calculated decisions.

E - Explain:

Risk-taking enables growth but must be controlled. Entrepreneurs compare expected outcomes. Testing reduces exposure.

C - Connect:

A company pilots expansion before scaling. Results are measured. Risk is managed.

A - Apply:

Use expected value.

Mention pilot programs.

Evaluate risk-taking opportunities (EN:024) (ON)

D - Describe:

This explains why structured systems are needed for consistency. Growth increases complexity.

E - Explain:

Without systems, quality declines. Procedures enable scalability. Systems reduce dependency on individuals.

C - Connect:

A startup documents workflows as it grows. Training becomes easier. Errors decline.

A - Apply:

Use SOPs, standardization.

Draw a process flow.

Explain the need for business systems and procedures (EN:025) (ON)

D - Describe:

This explains how formal guidelines standardize operations. Procedures support consistency.

E - Explain:

Clear procedures reduce confusion. They improve efficiency and quality. Documentation supports scaling.

C - Connect:

A company documents order handling steps. Employees follow consistent practices. Customer satisfaction improves.

A - Apply:

Mention process documentation.

Use quality control.

Describe the use of operating procedures (EN:026) (ON)

D - Describe:

This focuses on structuring tasks efficiently. Workflow design improves productivity.

E - Explain:

Poor workflow creates delays. Efficient design reduces waste. Structure improves output.

C - Connect:

A business reorganizes task flow. Bottlenecks are eliminated. Throughput increases.

A - Apply:

Use workflow optimization.

Mention bottleneck analysis.

Explain methods/processes for organizing workflow (EN:027) (ON)

D - Describe:

This focuses on creating or delivering value offerings. Products or services generate revenue.

E - Explain:

Quality and relevance determine success. Continuous improvement maintains competitiveness. Delivery must meet expectations.

C - Connect:

A startup launches its offering. Feedback drives refinement. Value improves.

A - Apply:

Use value proposition.

Mention customer feedback loops.

Develop and/or provide product/service (EN:028) (ON)

D - Describe:

This applies creative thinking to solve problems. It encourages innovation.

E - Explain:

Rigid thinking limits solutions. Creativity enables adaptation. New approaches improve outcomes.

C - Connect:

A founder redesigns processes when initial plans fail. Alternatives are tested. Success follows.

A - Apply:

Use lateral thinking.

Mention design thinking.

Use creative problem-solving in business activities/decisions (EN:029) (ON)

D - Describe:

This explains how efficient resource use affects success. Productivity impacts profitability.

E - Explain:

Higher output with fewer inputs improves margins. Waste reduces competitiveness. Productivity drives sustainability.

C - Connect:

A business automates repetitive tasks. Output increases. Costs decrease.

A - Apply:

Use operational efficiency.

Mention output/input ratio.

Explain the impact of resource productivity on venture success (EN:030) (ON)

D - Describe:

This establishes systems to continuously identify new opportunities. It prevents stagnation.

E - Explain:

Markets evolve continuously. Ongoing processes maintain relevance. Opportunity recognition fuels growth.

C - Connect:

A company regularly analyzes feedback and trends. New offerings emerge. Growth continues.

A - Apply:

Use continuous scanning.

Mention innovation pipeline.

Create processes for ongoing opportunity recognition (EN:031) (ON)

D - Describe:

This plans reinvestment for improvement or innovation. Resources fuel advancement.

E - Explain:

Reinvestment sustains competitiveness. Allocation decisions affect growth. Strategic investment maximizes returns.

C - Connect:

A business reinvests profits into product upgrades. Value improves. Market position strengthens.

A - Apply:

Use reinvestment strategy.

Mention long-term growth.

Develop plan to invest resources into improving current products or creating new ones (EN:032) (ON)

D - Describe:

This addresses responding to external and internal change. Adaptation supports survival.

E - Explain:

Markets shift unpredictably. Flexible businesses adjust quickly. Resistance to change increases failure risk.

C - Connect:

A company shifts strategy after market disruption. Operations adapt. Stability returns.

A - Apply:

Use agility.

Mention change responsiveness.

Adapt to changes in business environment (EN:033) (ON)

D - Describe:

This explains planning for future leadership or ownership. Continuity ensures stability.

E - Explain:

Unexpected exits disrupt operations. Planning preserves value. Continuity supports long-term success.

C - Connect:

An owner prepares succession plans. Leadership transition occurs smoothly. Operations continue.

A - Apply:

Use succession planning.

Mention business continuity.

Explain the need for continuation planning (EN:034) (ON)

D - Describe:

This outlines ways to exit or transfer ownership. Harvesting captures venture value.

E - Explain:

Exits may include sale, merger, or closure. Method affects returns. Strategic timing matters.

C - Connect:

A founder sells to a larger firm. Value is realized. Ownership transfers.

A - Apply:

Use acquisition, merger, liquidation.

Mention timing strategy.

Describe methods of venture harvesting (EN:035) (ON)

D - Describe:

This evaluates how entrepreneurs may stay involved after transition. Involvement varies by role.

E - Explain:

Options include advisory, board, or equity roles. Continued involvement preserves insight. Alignment with goals is essential.

C - Connect:

A founder stays on as board advisor after sale. Strategic input continues. Daily management ends.

A - Apply:

Use governance, advisory role, equity retention.

Evaluate options for continued venture involvement (EN:036) (ON)

D - Describe:

This creates structured plans for exiting a venture. Planning maximizes value.

E - Explain:

Early exit planning reduces uncertainty. Clear strategies guide decisions. Timing impacts valuation.

C - Connect:

A business prepares for acquisition after profitability. Metrics align with buyer expectations. Value peaks.

A - Apply:

Use exit strategy, valuation multiples.

Mention long-term vision.

Develop exit strategies (EN:037) (ON)