BUS206: Chapter 7 Managing Entrepreneurial Ventures

define entrepreneurship

the process of capitalizing on opportunities by starting new businesses for the purposes of changing, revolutionizing, transforming, or introducing new products or services

what are entrepreneurial ventures (EVs)?

organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals

what are small businesses?

an independent business that does not necessarily engage in any new or innovative practices and that has relatively little impact on its industry

what are the types of entrepreneurship?

opportunity-based, necessity, serial, portfolio, and social

define opportunity-based entrepreneurs

individuals who start an EV to pursue an opportunity

define necessity entrepreneurs

individuals who start an EV out of necessity

define a serial entrepreneur

an individual who has sold or closed an original business, founded another business, sold or closed that business, and continues this cycle of entrepreneurship neurial behavior

define a portfolio entrepreneur

an individual who retains an original business and builds a portfolio of additional businesses through inheriting, establishing, or purchasing them

define a social entrepreneur

an individual that seeks out opportunities to improve society by using practical, innovative, and sustainable approaches

why is entrepreneurship important?

it leads to job creation, innovation, several new startups, and global entrepreneurship

what are the seven sources of opportunity that entrepreneurs might look for externally?

the unexpected, the incongruous, the process need, industry and market structures, demographics, changes in perception, and new knowledge

what occurs in a feasibility study?

evaluates the practicality and potential success of a project or venture by analyzing various factors, including market demand, financial viability, technical requirements, and legal considerations

what planning do entrepreneurs need to do?

they must develop and write a business plan (extensive)

what additional planning considerations do entrepreneurs need to address?

they should think about the desired organizational values, vision, mission, and culture

what six major areas are covered in a good business plan?

executive summary (1-2 pages, clear and concise, memo format), analysis of opportunity, analysis of the context (broad external changes), description of the business, financial data and projections (scenarios), and supporting documentation