CHAPTER 1: Introduction to entrepreneurship
1. Explain entrepreneurship and discuss its importance.
Entrepreneurship is the art of turning an idea into a business.
Entrepreneurs assemble and then integrate all the resources needed –
the money, the people, the business model, the strategy – to transform
an invention or an idea into a viable business.
2. Describe corporate entrepreneurship and its use in
It is the conceptualization of entrepreneurship at the firm level. All
firms fall along a conceptual continuum that ranges from highly
conservative to highly entrepreneurial. The position of a firm on this
continuum is referred to as its entrepreneurial intensity.
Entrepreneurial firms are PROACTIVE, INNOVATIVE ad RISK-TAKING.
3. Discuss three main reasons people decide to become
1. Desire to be their own boss
2. Desire to pursue their own ideas
3. Financial rewards.
4. Identify four main characteristics of successful
1. Passion for the business – belief of positive influence
2. Product/customer focus – entrepreneurs are craftspeople
3. Tenacity despite failure – ability to persevere through setbacks
4. Execution intelligence – making a good idea into a viable
5. Explain five common myths regarding entrepreneurship.
1. Entrepreneurs are born, not made
2. Entrepreneurs are gamblers
3. Entrepreneurs are primarily motivated by money
4. Entrepreneurs should be young and energetic
6. Explain how entrepreneurial firms differ from salary-
substitute and lifestyle firms.
1. Salary substitute firms: similar salary level to what they’d get
with a conventional job.
2. Lifestyle firms: provide the opportunity to pursue a particular
lifestyle and make a living at it.
3. Entrepreneurial firms: bring new products or services by
seizing opportunities. 7. Discuss the changing demographics of entrepreneurs in the
1. Substantial growth in businesses owned by women, minorities
& senior entrepreneurs.
2. High interest in entrepreneurial careers amongst young
8. Discuss the impact of entrepreneurial firms on economies
1. Innovation: creating something new
2. Job creation: small businesses are the creators of most new
3. Impact on society: new products and services make life easier
4. Impact on larger firms: many create products and services
that help larger firms efficiency
9. Identify ways in which large firms benefit from the presence
of smaller entrepreneurial firms.
1. Many entrepreneurial firms build their entire business model
around producing products and services that help larger firms
efficiency and effectiveness
10. Explain the entrepreneurial process.
1. Deciding to become an entrepreneur.
2. Developing successful business ideas.
3. Moving from an idea to an entrepreneurial firm.
4. Managing and growing the entrepreneurial firm.
CHAPTER 2: Recognizing opportunities and generating ideas
1. Explain the difference between an opportunity and an idea.
4. Adds value
2. Describe the three general approaches entrepreneurs use to
1. Observing trends (they create opportunities)
2. Solving a problem
3. Finding gaps in the marketplace (often created when there is
a need by a specific group of people but not worth it for large
firms) 3. Identify the four environmental trends that are most
instrumental in creating business opportunities.
1. Economic forces: help determine good or bad areas for start-
2. Social trends: they alter how people and businesses behave
3. Technological advances: once a technology is created,
products emerge to advance it
4. Political actions and regulatory changes: some businesses
were created to help other companies comply with the law
4. List the personal characteristics that make some people
better at recognizing business opportunities than others.
1. Prior experience: industry experience helps recognize
opportunities and create a network in that same industry
2. Cognitive factors: ability to notice opportunities without
3. Social networks: will be exposed to more opportunities (weak-
tie relationships lead to more new business ideas because
strong-tie relationships tend to reinforce insights)
4. Creativity: opportunity recognition may be a creative process
5. Identify the five steps in the creative process.
6. Describe the purpose of brainstorming and its use as an
1. Technique used to generate a large amount of ideas and
solutions to problems quickly
2. Some rules include no criticism and session should move
7. Describe how to use library and Internet research to
generate new business ideas.
1. Browse through several issues can spark new ideas
2. Libraries have access to search engines that would cost you
3. Target searches can lead you to articles supporting your new
8. Explain the purpose of maintaining an idea bank. 9. Describe three steps for protecting ideas from being lost or
1. Idea should be put in tangible form with date
2. The idea should be secures, often overlooked
3. Avoid disclosure in a manner that forfeits the right to claim
exclusive rights to it
CHAPTER 3: Feasibility analysis
1. Explain what a feasibility analysis is and why it’s important.
1. Process of determining if a business idea is viable
2. Preliminary evaluation to see if the idea is worth pursuing
2. Discuss the proper time to complete a feasibility analysis
when developing an entrepreneurial venture.
1. Proper time is early in thinking through the prospects of the
2. Screening ideas before a lot of resources are spent on them
3. Describe the purpose of a product/service feasibility
analysis and the two primary issues that a proposed
business should consider in this area.
1. Purpose: assessment of the overall appeal of the
product/service being proposed
1. Product/service desirability
2. Product/service demand
4. Explain a concept statement and its components.
1. One-page description of the business distributed to people
who are asked to provide feedback on the potential of the
5. Describe the purpose of a buying intentions survey and how
1. Instrument used to gauge customer interest in a product
2. Includes the concept statement and a survey attached
6. Explain the importance of library, Internet, and gumshoe
1. Reference librarians can often point you toward resources to
help you investigate a new business idea
2. You can find important information on the viability of the
product or service
7. Describe the purpose of industry/market feasibility analysis
and the two primary issues to consider in this area. 1. Assessment of overall appeal of the industry and the target
market for the proposed business idea
1. Industry attractiveness
2. Target market attractiveness
8. Discuss the characteristics of an attractive industry.
1. Early in life cycle
2. Growing rather than shrinking
3. Fragmented rather than concentrated (App store and Google
9. Describe the purpose of organizational feasibility analysis
and list the two primary issues to consider in this area.
1. Conducted to determine whether a proposed business idea
has sufficient management expertise, competence and
resources for successful launch
1. Management Prowess: evaluate ability of management
team to satisfy launch (passion and expertise)
2. Resource efficiency assessment of whether an
entrepreneur has enough resources to launch proposed
10. Explain the importance of financial feasibility analysis
and list the most critical issues to consider i