Entrepreneurship 340 Midterm

Entrepreneurship

Anyone who starts a business.

Corporate Entrepreneurship

The process of creating new products, ventures, processes, or renewal within large corporations.

Entrepreneurship Inside

Employees who think and act entrepreneurially within different types of organizations.

Franchising

A method of distributing products or services involving a franchisor and franchisee.

Buying a Small Business

An entrepreneur is buying out the existing owner(s) and taking over operations.

Social Entrepreneurship

The process of sourcing innovative solutions to social and environmental problems.

Family Enterprising

A business that is owned and managed by one or more family members beyond the founding generation.

Entrepreneurial Mindset

Mental process that enables you to recognize and act on valuable opportunities with incomplete information.

Fixed Mindset

People perceive their talents and abilities as set traits.

Growth Mindset

People believe that their abilities can be developed through dedication, effort, and hard work.

Metacognition

Our ability to understand and be aware of how we think and the processes we use to think and make decisions.

Self Leadership

A process whereby people can influence and control their own behavior, actions, and thinking to achieve self-direction.

Self-Observation

A process that raises one's awareness of how, when, and why they behave the way they do in certain circumstances.

Self-Goal Setting

The process of setting individual goals for oneself.

Self-Reward

A process that involves compensating oneself upon achieving a goal; can be tangible or intangible.

Self-punishment

A process of examining one's mistakes before making a conscious effort not to repeat them.

Self-Cueing

The process of prompting that acts as a reminder of desired goals.

Improvisation

The art of spontaneously creating something without preparation.

Opportunity

A possibility of generating value through the introduction of unique, novel, or desirable products, services, and processes.

Characteristics of opportunities

Potential economic value, novelty or newness, perceived desirability.

Idea Classification Matrix

A framework for categorizing ideas based on their value and degree of novelty.

Innovation

High in value and high in degree of novelty.

Innovation

High in Value; High in Degree of Novelty

Invention

Low in Value; High in Degree of Novelty

Improvement

High in Value; Low in Degree of Novelty

Irrelevant

Low in Value; Low in Degree of Novelty

Idea Generation Skills Strategies

Scanning, Connecting, Lateral Thinking, Imagining, Observing, Collaborating

Find Pathway

Assumes that opportunities exist independent of entrepreneurs and are waiting to be found

Search Pathway

When entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities

Effectuate Pathway

Creating opportunities than about simply uncovering them

Design Pathway

A pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs

Design Thinking

A human-centered, interactive, problem-solving process that places emphasis on identifying people's needs, creating solutions to meet those needs, and testing solutions to make them better

Desirability

What do people need?

Feasibility

Can it be done from an organizational a/o technical perspective?

Viability

Can we make money doing it?

Empathy

The combination of social and emotional skills used to better understand the circumstances, intentions, thoughts, feelings, and needs of others

Divergent Thinking

Allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints

Convergent Thinking

Allows us to narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential

Empathize Phase

Helps to uncover latent needs (needs we have but don't know it)

Define Phase

Identifies needs and uncovers problems encountered by users

Ideate Phase

Generating and developing new ideas to address needs/latent needs

Prototype Phase

Select ideas are transformed into prototypes (user interactive)

Test Phase

Seeks to answer the questions "how do I get feedback, how do I test it, how do I iterate, and how do I learn as quickly as possible?"

Feedback Interview

An interview conducted to get feedback on an existing product or service

Need-Finding Interview

An interview conducted to better understand the problems or needs of people or validate what you think a need or problem may be

Observation

The act of closely monitoring the behavior and activities of users/potential customers in their own environment to arrive at greater empathic understanding

Business Model

Describes the rationale of how a new venture creates, delivers, and captures value

The Offering

Identifies what you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them

Customer Value Proposition (CVP)

Explains the uniqueness of a company's offerings and suggests why a customer should buy from your company rather than the competition

The Customers

The people who populate the segments of a market that your offering is serving

Infrastructure

The resources (people, technology, products, suppliers, partners, facilities) that an entrepreneur must have to deliver the CVP.

Financial viability

The revenue and cost structures a business needs to meet its operating expenses and financial obligations.

Lack of time

A problem experience by customers indicating insufficient time to engage with products or services.

Lack of money

A problem experience by customers indicating insufficient financial resources to purchase products or services.

Lack of skills

A problem experience by customers indicating insufficient abilities or knowledge to utilize products or services.

Lack of access

A problem experience by customers indicating barriers to obtaining products or services.

All-benefits

Identifying and promoting all the benefits of your product or service to customer segments, with little regard for the competition or any real insight into what the customer really wants or needs.

Points-of-difference

Focuses on your product or service relative to the competition and recognizes that your offering is unique and different from others on the market.

Resonating-focus

Describes why people will really like your product and focuses on the customers and what they really need and value; an offering that meets the needs of customers.

Mass market

A large group of customers with very similar needs and problems.

Niche market

A small market segment consisting of customers with specific needs and requirements.

Segmented market

Divided into groups according to customers' different needs and problems.

Diversified market

Offers a variety of services to serve two or more customer segments with different needs and problems that bear no relationship to each other.

Multisided markets

Markets with two or more customer segments that are linked but are independent of each other.

Business model canvas (BMC)

Divides the business model's four parts into components to provide a more thorough overview of the logic of the business model.

Offering

Constitutes the (1) value proposition.

Customers

Relate to (2) customer segments, (3) channels, and (4) customer relationships.

Infrastructure

Includes (5) key activities, (6) key resources, and (7) key partners.

Financial viability

Includes (8) cost structure and (9) revenue streams.

Customers

Someone who pays for a product or service.

Markets

A place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand).

End user

The customers who will actually use your product.

Influencers

Customers with a large following who have the power to influence purchase decisions.

Recommenders

People who may evaluate your product and tell the public about it.

Economic buyers

Customers who have the ability to approve large-scale purchases.

Decision makers

Customers similar to economic buyers who are positioned higher up in the hierarchy and so have even more authority to make purchasing decisions.

Saboteurs

Anyone who can veto or slow down a purchasing decision.

Innovators

The first customer to try a new product; enthusiastic about new technology and are willing to take the risk of product flaws or other uncertainties that may apply to early versions.

Early adopters

Second group to adopt a product; tend to buy new products shortly after they hit the market but are not motivated by their enthusiasm for new technology.

Early majority

Tend to take interest in a new product once it begins to have mass market appeal; both practical and extremely risk averse, preferring to wait and see how others view the technology before they buy it themselves.

Later majority

Typically skeptical, pessimistic, risk averse, and less affluent than the previous groups; however, because they are such a large portion of the life cycle, they cannot be ignored.

Laggards

Last to adopt a new innovation; tend to have negative attitude toward technology in general and have a strong aversion to change.

Buyer Personas

Profiles or representations of your ideal customers based on information and market research.

TAM

Total available market; refers to the total market demand for a product or service.

SAM

Serviceable available market; section of the TAM that your product or service intends to target.

SOM

Share of market; portion of the SAM that your company is realistically likely to reach.

Experiment

A test designed to help you prove or disprove the validity of a hypothesis, which is an assumption you have about your venture.

Interview

Fast and inexpensive way to get feedback, validate needs, and acquire new ideas from your assumed target market.

Paper testing (rapid prototype)

A simple way to outline your vision and to spot any mistakes before the process goes any further; includes wireframing, storyboarding, or drawing the product you envision.

Advertising

Spreading the word about your business using brochures or social media directed to your relevant target market and assessing the level of response.

Bottom to nowhere

When your users click on the feature, nothing happens; great way to find user interest in a new feature - more clicks = feature interest.

Landing page

Useful way to gauge the level of customer response to your business's website is to include a particular call to action.

Task completion (usability testing)

Involves watching someone use your product to understand what works and what doesn't.

Prototype

An early version of a product.

Preselling

A testing technique that involves booking orders for your product before it has been developed.

Live product and business

Gathered enough insights and validation to launch your live product and business in the marketplace.

Low-fidelity (rapid prototypes)

Quickly created models used to visualize a product or service; rough, quick build so you can explore different options.

User-driven prototypes

Require the user to create prototype, which in turn enables you to better understand their thinking.

Storyboard

An easy form of low-fidelity prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations.

Medium-fidelity

More detail and realism but not the final solution, yet it gives customers a better sense of what the final product will look and feel.