Entrepreneurship Exam 1

6 features of entrepreneurship

entrepreneurship is a method that requires practice, they think differently, they act more than plan, they aren’t driven purely by profit, they collaborate more than they compete, and it is a life skill

corporate entrepreneurship

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

franchising

a method of distributing products of services involving a franchiser and franchisee

social entrepreneurship

the process of sourcing innovative solutions to social and environmental problems

is entrepreneurship a process that is linear and predictable

no

entrepreneurship as a method

an approach of doing things, portfolio of skills to acquire, nonlinear, learning oriented, action focus, requires practice, entrepreneur is in control of practicing

what should you do when you face uncertainty

embrace and confront it

entrepreneurship as a process

known inputs and predicted outputs, steps to complete, linear, pre-established course, planning focus, requires goal completion, the process dictates the actions of the entrepreneur

managerial thinking vs entrepreneurial thinking

managerial thinking is more controlled and stable while entrepreneurial thinking is taking risks and has opportunities

effectuation theory

Entrepreneurs don’t predict the future; they create it using the resources, relationships, and opportunities they already have.

components of entrepreneurship method

come up with your why statement, start with your means at hand, describe the idea today, identify first actions, enroll stakeholders, calculate affordable loss, act, learn, and build

components of deliberate practice

requires high levels of focus, strengthens performance by identifying weaknesses and improving on them, must be consistent and maintained for long periods of time, must be repeated to produce lasting results, requires continuous feedback on outcomes, involves setting goals beforehand, involves self-observation and self-reflection after practice sessions are completed

fixed vs. growth mindset

fixed mindset is static while a growth mindset is dynamic

entrepreneurial mindset

a mental process that enables you to recognize and act on valuable opportunities with incomplete information, while being resilient under complex and uncertain conditions

metacognition

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

ESE

the belief entrepreneurs have in their ability to start new ventures

value creation (social and economic)

social is about the quality of your life while economic is about money

role of passion (positive and negative)

passion makes you work harder and never give up but it can also give you confirmation bias

characteristics of why statement

What, How, Where

role of creativity as a habit

foundation from which new opportunities are created and discovered

role of improvisation as a habit

helps you develop the cognitive ability to rapidly sense and act as well as change direction quickly

role of fear management  as a habit (steps to manage fear)

accept it, identify it, feel it, face it, practice it

role of self-leadership as a habit

you cannot rely on someone else to manage you

role of reflection as a habit

to learn from the actions you take, it is good to reflect on them

social innovation

a novel solution to a social problem that is more effective, efficient, or just than existing solutions

social value creation

when that solution can be turned into an organization or can be used inside an organization

wicked problems

large, complex social problems

UN sustainable development goals and an example

offer a blueprint for achieving a thriving, inclusive, and sustainable society by 2030, example is zero hunger

for profit social venture

business that has a dual mission, aiming to achieve both social or environmental objectives and financial sustainability

enterprising non profit

nonprofit organizations that act more like for-profit ventures

hybrid social venture

engage in revenue-generating activities while also having a philanthropic strategy to help deliver social value

traditional non profit

rely primarily on grants and donations

Customer model

selling a product or service to a target group that is served by the organization

employee model

revenue generated by the type of people the nonprofit hires

product model

focuses on monetizing a product or service to make a social impact

combined model

combining 2 or more of the other models

social venture capital

a form of investment funding that focuses on for-profit social ventures with a social or environmental mission

venture philantropy

impact investment in which investors support social ventures by applying some principles of venture capital funding

how does a theory of change map out expected incomes

it helps you map out metrics along the way, it can help you figure out how and why a program will work before it begins

how is a social return on investment calculated

SROI = (social and environmental impact)/financial cost of project

how does the entrepreneurial mindset relate to opportunity recognition

it helps entrepreneurs stay alert, curious, and creative, allowing them to spot unmet needs, reframe problems as opportunities, and act on them despite uncertainty.

path from an idea to an opportunity

An idea becomes an opportunity when it is evaluated, tested, and shown to solve a real problem, create value, and be feasible in the market.

where does idea generation not happen

isolation

strategies to develop idea-generation skillsets

scanning, connecting, lateral thinking, imagining, observing, collaborating

IDEO’s brainstorming rules

avoid judging others, let the creativity flow, be open to developing the ideas of others, stay on topic, follow the one at a time rule, use visuals, generate as many new ideas as possible 

how do pathways increase in complexity

As ideas develop, they require more resources, testing, planning, and decision-making, making each step toward an opportunity more detailed and challenging.

IDEATE method

identify problems, discover ideas, enhance existing products, anticipate change, target a market, evaluate your ideas

first person opportunities

opportunities defined by our own personal lens through which we view the world and are limited to our immediate environment 

third person opportunities

opportunities that focus on a much broader spectrum of significant problems to solve for customers

gender and socioeconomic gaps in self efficacy and execution

People from different genders or lower socioeconomic backgrounds often face barriers—like limited resources, stereotypes, or less confidence—that reduce their belief in their abilities (self-efficacy) and make it harder to execute entrepreneurial ideas.

designer skills

observation, listening, emotional intelligence, problem-farming, problem-solving

design thinking

human-centered, interactive, problem-solving process that places emphasis on identifying people’s needs

intersection of needs

where desirability, feasibility, and viability intersect

why does empathy matter

it helps entrepreneurs understand customers’ true needs, build better solutions, and create stronger connections with their market.

role of observation to generate insights

It lets entrepreneurs notice patterns, behaviors, and unmet needs, turning real-world evidence into ideas for opportunities.

different observation techniques

shadowing, interviewing, immersing in customer experiences, taking field notes, and using visuals

interview techniques

ask permission, customer pain, existing alternatives, prioritize pain, dig deep, get a story

principles of service design

user-centric, cocreated, sequenced, visual, holistic

strength of business model through differentation

strength of business model through differentation

strength of business model through innovation

creates new value, improves efficiency, and keeps the business competitive by adapting to changing markets.

strength of business model through disruption

allows a business to challenge industry norms, reach underserved markets, and create entirely new ways of delivering value.

interlocking parts

offering, customers, infrastructure, financial viability

Customer value proposition

CVP

four typical problems with CVP

lack of time, lack of money, lack of skills, lack of access

types of value propositions

resonating focus (focus on the customer), points of difference (focus on the competition), all benefits (focus on the product)

mass market

large group of customers with very similar needs and problems

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 market

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

differences between canvas and BMC

The Business Model Canvas (BMC) is a structured tool with 9 building blocks, while “canvas” is the general framework style—BMC is one specific type of canvas.

supply

the sellers who compete for customers in the marketplace

demand

the prospective customers’ desire for the goods and services available

market opportunity

the degree of customer or market demand for a specific product application

product application

the goods or services created to meet demand and provide a solution to a customer problem

difference between customer and consumer

customer is the one paying for it, consumer is the one using it

how do experienced entrepreneurs keep customers front and center

They use feedback, testing, and continuous engagement to ensure products and services match real customer needs.

role of customer psychology and actors in buying process

Customer psychology shapes decisions through needs, emotions, and perceptions, while actors (influencers, buyers, users, deciders) each affect the final purchase choice.

importance of creating customer personas for strategies to connect with target market

they help entrepreneurs understand customer needs, behaviors, and motivations, allowing them to tailor products, marketing, and messaging effectively.

characteristics of customer personas

demographics, psychographics, proxy products, day in the life, biggest fears and motivators, challenges/pain points

what is the main role customer journey maps

To visualize each step of the customer’s experience, helping entrepreneurs understand pain points, motivations, and opportunities to better connect with their target market.

how are customer segments defined

who they are, where they are, how they behave, and their needs

How does the technology adoption cycle help understand target customers?

It shows how different groups—innovators, early adopters, early majority, late majority, and laggards—accept new products, helping entrepreneurs tailor marketing and adoption strategies.

crossing the chasm

It refers to moving a product from early adopters to the early majority, bridging the gap between initial enthusiasm and mainstream market acceptance.

role of the launch market

entrepreneurs test their product with a small, targeted audience to gather feedback, validate demand, and refine the offering before scaling.

how can a launch market be a bowling pin strategy

By targeting a small, focused market (the first “pin”) and using its success to sequentially enter adjacent markets, building momentum like knocking down pins in a row.

what leads to rapid (tornado) growth

successful land and expand approach

Main Street stability

steady, sustainable growth serving established markets with predictable demand, focusing on reliability rather than rapid expansion.

role of market sizing to estimate potential

Market sizing quantifies the total possible customers and revenue, helping entrepreneurs assess opportunity viability and prioritize resources.

top-down market sizing

determining the total market and then estimating your share of the market

experiments through the lens of market validation

structured and follow a template, focused and don’t try to test too many things at the same time, they are believable, they are flexible, they are compact

what corresponds to believability of information

level of effort of experiments

different types of experiments used in developing product

interview, paper testing, advertising, button to nowhere, landing page, task completion, prototype, presetting, live product and business

low fidelity

rapid prototype, low cost, rough and quick to build

medium fidelity

more detail than low fidelity but not final

high fidelity

most realistic version of the product before final product, also considered to be MVP

power of storyboards

visually map the customer’s experience, making ideas clearer, aligning teams, and revealing gaps or opportunities in the business model.

what are the 6 steps in experimentation

identify your question, gather background information, develop a hypothesis, test your hypothesis, analyze your results, form a conclusion

experimentation template

what is the hypothesis, what is the pass/fail metric, who are the participants in the experiment, how many participants are needed, how are you going to get participants, how will the experiment be run, how long is the experiment

role of low-cost consumer engagement and feedback

It allows entrepreneurs to quickly test ideas, validate assumptions, and refine products without heavy investment.

process for feedback interviews

Identify target customers, prepare open-ended questions, conduct conversations to uncover needs and pain points, record insights, and analyze patterns to refine ideas.