Entrepreneurship Essentials: Your Guide to MGMT 373 Success
School
University of South Carolina**We aren't endorsed by this school
Course
MGMT 373
Subject
Management
Date
Dec 12, 2024
Pages
14
Uploaded by GeneralPower3948
Study GuideWednesday, November 13, 202410:58 AMMGMT 373 Final Exam Study Guide Key Concepts CH 1What is Entrepreneurship?- An activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes, and raw materials through organizing efforts that previously had not existed Types of Entrepreneurs- •Innovators- Find new approaches, methods, or products that add value through solving a problem in a unique manner •Creators- Make something new or see a problem that other people have not noticed •Market makers- Innovate or reinvent their market from a future perspective by asking what the market could evolve into •Expanders and scalers Seek out opportunities to expand upon previously createdmethods, processes, or productsEntrepreneurial Mindset- an awareness and focus on identifying an opportunitythrough solving a problem, and a willingness to move forward to advance that idea. What drives Entrepreneurship?- being passionate, purposeful, positive, bold, curious,or persistent CH 2What is Bootstrapping?- The process of self-funding a company is typically referred toas bootstrapping, based on the old adage that urges us to “pull ourselves up by ourbootstraps.” It describes a funding strategy that seeks to optimize use of personal fundsand other creative strategies (such as bartering) to minimize cash outflows Entrepreneurial Journey- your exploration to discover if entrepreneurship is right for you Steps of the Entrepreneurial Journey1.Step 1: Inspiration – What is your motivation for becoming an entrepreneur? 2.Step 2: Preparation – Do you have what it takes to be an entrepreneur? 3.Step 3: Assessment – What is the idea you plan to offer through your venture? 4.Step 4: Exploring Resources – What resources and characteristics do you need tomake this venture work? 5.Step 5: Business Plan – What type of business structure and business model willyour venture have? 6.Step 6: Navigation – In what direction will you take your venture? Where will yougo for guidance? 7.Step 7: Launch – When and how will you launch your venture? Venture and Business Life Cycle- New Venture Life Cycle 1.Pre-seed a.Idea implementation 2.Early Stage a.Implementation, growth, maturity 3.Late Stage a.Sale of venture or IPO to fund future growth Business life cycle steps: 1.Startup a.Pre launch- discovery, research, define opportunity b.Conception- solidify idea and opportunity, Build and test business model 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…1/14
c.Resourcing- build support system team and plan , gather resources 2.Launch a.Small market entry b.Manage test and monitor progress 3.Growth a.Build market and scale b.Manage, test, and monitor progress 4.Maturity a.Strengthen market position b.Reap return on investment 5.Harvest a.Plan for future b.Reap return on investment 6.Rebirth or Exit a.Rebirth- redesign or create new venture b.Exit- transition to next, close Frameworks for Entrepreneurship•Framework- structure or outlined process that can be used to accomplishentrepreneurial goals through problem solving, idea generation and validation, andbrainstormingBusiness Model Canvas- one-page tool that maps out nine basic buildingblocks that are necessary for a successful business model, Helps prepare asustainable business modelLean Startup Outlines- a quick feedback loop through customer input Usedfor fast-paced industries and quick idea validationDesign Thinking Process Outlines- a systematic, results-oriented process toaddress and solve problems Used for the development of STEM fields withexpansion into entrepreneurial ventures, products, and processes; applicableto all areasFour Lenses Strategic Framework- A practitioner-driven model that considersfour perspectives to support and develop a client-focused ecosystem Used forthe development of social venturesThe Four Lenses Strategic Framework involves stakeholderengagement, culture management, resource mobilization/application,and knowledge development, and can provide synergies and insightsinbuilding compatible and aligned actions.CH 4Role of Creativity in Entrepreneurship•Creativity - ability to develop something original, particularly an idea or arepresentation of an idea, with an element of aesthetic flair •Linear vs lateral thinking Linear thinking (or vertical thinking)- use of logic, step by step approach,vertical flow down a planned path for innovation Lateral thinking- creative thinking, open to possibilities, agility in problemsolving to consider better alternatives or solutions •5 stages of creativity: 1.Preparation- involves investigating a chosen field of interest, opening yourmind, and becoming immersed in materials, mindset, and meaning 2.Incubation- refers to giving yourself, and your subconscious mind inparticular, time to incorporate what you learned and practiced in thepreparation stage, involves the absence of practice. 3.Insight or “illumination”- is a term for the “aha!” moment—when the solutionto a creative problem suddenly becomes readily accessible to your consciousmind. 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…2/14
4.Evaluation- is the purposeful examination of ideas. You will want to compareyour insights with the products and ideas you encountered during preparation 5.Elaboration- actual production, release of a minimum viable product (MVP).This version of your invention may not be polished or complete, but it shouldfunction well enough that you can begin to market it while still elaborating on itin an iterative development process The Human Centered Design Process-The objective is to generate as many ideas aspossible and start to develop some of those ideas. •Five parts: accessing and expressing empathy, defining the problem, ideatingsolutions (brainstorming), prototyping, and testing •Sources of Ideas and InnovationThe Unexpected- Looking for new opportunities in the market; unexpectedproduct performance; unexpected new products as examplesThe incongruity- Discrepancies between what you think should be and what'srealityProcess need- Weaknesses in the organization, product, or serviceChanges in industry/market- New regulations; new technologiesDemographics Understanding needs and wants of target marketsChanges in perceptions Changes in perceptions of life events and valuesNew knowledge New technologies; advancements in thinking; new researchCH 5Evaluating Entrepreneurial Opportunities-•Evaluating opportunity: •Entrepreneurial opportunity- is the point at which identifiable consumer demandmeets the feasibility of satisfying the requested product or service •Opportunity screening- is the process by which entrepreneurs evaluate innovativeproduct ideas, strategies, and marketing trends. •An idea can move to a recognized opportunity when the following criteria are withthree factors: Significant market demand, Significant market structure and size, Significantmargins and resources to support the venture’s success •Identifying opportunity: recent drivers for change in the entrepreneurial space include new fundingoptions, technological advancements, globalization, and industry-specificeconomics six reasons that current conditions are excellent for startups Venture capital investment, patent protection is improving, AI bringsopportunities, growth of freelance workers, technology advancements,intellectual property GDP high impact Competitive Analyses•Competitive analysis- should provide the entrepreneur with information about howcompetitors market their business and ways to penetrate the market by entrythrough product or service gaps in areas that your competitors do not serve or donot serve well 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…3/14
More importantly, competitive analysis helps the entrepreneur develop acompetitive edge that will help create a sustainable revenue stream. •Competitive analysis grid- should identify your competitors and include anassessment of the key characteristics of the competitive landscape in yourindustry, including competitive strengths and weaknesses and key success factors •Ex: •SWOT analyses•SWOT analysis- (strengths, weaknesses, opportunities, and threats), whichfocuses on analyzing your venture’s potential and builds on the knowledge gainedfrom the competitive analysis grid and the three circles Note that strengths and weaknesses are internal to the entrepreneur, whileopportunities and threats are external factors Ex: Researching Entrepreneurial Opportunities•Opportunity screening is the process by which entrepreneurs evaluate innovativeproduct ideas, strategies, and marketing trends Small business marketers can use several no-cost or low-cost methods,including surveys, questionnaires, focus groups, and in-depth interviews asking potential customers, specifically your target customers, questionsabout products they like and don’t like, how a product or service could beimproved, how the customer buying experience could be improved, and evenwhere customers might go to purchase products and services instead of yourbusiness •Resources like: US Census data (https://www.census.gov/academy), which provides insightinto the population in your market area, such as the metropolitan statisticalarea data, as well as statistics on the economy and Small Business Administration, the Service Corps of RetiredExecutives(SCORE), and your local Small Business Development Center, orlocal college or university business department that provides assistance tolocal area businesses •secondary research- data that are already available through some publishedsource 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…4/14
•Primary research- gathers data that do not yet exist. The information is specific tothe business, product, or consumer. Sources of Failure•Ten reasons for small business failureLow sales- Entrepreneurs may have overestimated sales, assuming theycould take sales away from established competitors,Lack of experience- Running a business is hard, and a new business can beespecially challenging, as it is difficult to prepare adequately for theunexpected.Insufficient capital- When calculating how much money you will need to startyour new business venture, be sure to account for the time it will take beforeyour business breaks even and be sure also to allow for some contingencyfunds for when the unexpected happens.Poor location- For some types of businesses, location is critical. Of course,location may be less important for a home-based business and not at allimportant for an Internet business.Poor inventory management- Too much inventory results in the businessbecoming cash-strapped and unable to buy advertising or other importantgoods and services.Overinvestment in fixed assets- Especially when starting a business, it isusually less expensive to lease or purchase used equipment, thereby savingcash for meeting operational expenses.Poor credit arrangement management- Start your venture small and limit theamount of money you need to borrow. Work with your banker from thebeginning by sharing your business plan and vision for the business with thebanker and, most important, show that you are proactive in planning for whenyou will need to borrow money.Personal use of business funds- The owner should pay him/herself a minimalsalary and not dip into business funds. If the business has done well, theowner will earn additional funds at the end of the yearUnexpected growth- Surprisingly, some businesses fail because the businessowner cannot manage growth. Growing a new venture, especially if thegrowth is at a higher rate than expected, can create surprising challenges.For example, if creating a product, you need to consider the capacity of thefactory where you are producing the product. If you are at 100 percentcapacity and your orders increase, you will need to think about what actionscan support this increase in demand. If you cannot meet the demand, you willhave unhappy customers and negative publicity that will reflect negatively onyour leadership and managerial skills. Your lack of planning for this surge insales may open opportunities for someone else to start a competingbusiness.Competition- Many small business owners underestimate their competition.Remember, if there is money to be made, there will be competition! Largercompetitors can beat you every day of the week on price, so find another wayto challenge competitors.CH 6Creative Problem Solving•Empathy- is the human ability to feel what other humans are feeling, which in thecontext of creativity, innovation, and invention is essential to beginning a processof human-centric design. Practicing empathy enables us to relate to people andsee the problem through the eyes and feelings of those who experience it. •Steps of creative problem solving- 1.Clarify- is the critical step of recognizing the existence of a gap between thecurrent state and a desired state. need awareness, which occurs when the entrepreneur notes a gapbetween societal or customer needs and actual circumstances The goal of a fishbone diagram is to find the root causes of the qualityproblem 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…5/14
2.Ideate- the step of the creative problem-solving process that involvesgenerating and detailing ideas by the entrepreneur. i.After collecting all information relevant to the problem, the entrepreneurlists as many causes of the problem as possible. This is the step inwhich the largest variety of ideas are put forth. Each idea must beevaluated for feasibility and cost as a solution to the problem. 3.Implement- is the step in which the solution to the problem is tested andevaluated. 4.Evaluate- is the step in which the final solution is assessed Design Thinking•Design thinking- is a method to focus the design and development decisionsof a product on the needs of the customer, typically involving an empathy-driven process to define complex problems and create solutions thataddress those problems○Three spaces compose the design thinking process- inspiration, ideation,and implementation human-centered design(HCD)- focuses on people during design anddevelopment. This speaks to the Tim Brown definition of designthinking. Inspiration for ideas comes from exploration of actual people,their needs and problemsA few examples of ideation exercises include Top Five- everyone on the team writes down their top five ideas,shares them, and clusters similar ideas.How Might We- the team looks at insight statements and reframesthem as “How Might We” questions by adding that phrase at thebeginning. The goal is to find opportunities for design that alsoallows for a variety of solutions.Mash-up- involves combining existing brands or concepts to createsomething new.The team identifies those brands or concepts thatrepresent a quality they desire in their solution, and they “mashup” those ideas to create a new ideaCo-Creation Session- incorporates the desired market intothecreation process by recruiting a group of people from themarket to work on the design with the team. Thegoal is to capturethe feedback the group provides by treating them as designers, notas interview subjects•Human-Centered Design Thinking Spaces Empathizing: Build empathy by observing and understanding theexperiences of those affected by the problem. Defining: Identify core issues by framing "how might we?" questions andcrafting a problem statement. Ideating: Generate ideas through brainstorming techniques, such as the"Five Whys" method, to dig into the problem’s root causes. Prototyping: Create and test low-cost, scaled-down versions of potentialsolutions to refine ideas. Design Thinking Tools•Design thinking tools- These may be activities, or templates that facilitate theapproachInnovation Flowchart: A sample innovation flow chart may map out the detailsof the process. The structured overview serves as an organizational tool inthe development process.Question Ladder: A tool that helps you ask the “right” questions by refiningyour questions. Asking the “wrong” questions can yield meaningless or less-than-adequate results•Design Thinking Tool Kit: A typical tool kit includes a wide assortment of resourceswith methods and instructions to help you put design thinking into actionDEO Design Kit: IDEO offers an approximately 200-page free PDF, “TheField Guide to Human Centered Design,” with activities on mindsets, ideation,inspiration, implementation and a few casestudies:http://www.designkit.org/resources/1.•12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…6/14
Google Ventures Design Sprint: A five-day design-thinking exercise that helpsresolve questions throughdesign, prototyping, and testing:https://www.gv.com/sprint/.Design Thinking Mix Tapes: Stanford’s Design School offers three “mixtapes”that serve as guidesthrough a half day of design thinking work in the areas ofunderstanding, experimentation, andideation:https://dschool.stanford.edu/resources/chart-a-new-course-put-design-thinking-to-work.•WE THINQ: Software designed to enable collaboration in innovationmanagement:https://www.ideaconnection.com/software/we-thinq-258.html.CH 7Entrepreneurial Vision•Vision statement- outlines the venture’s broader purpose, what the entrepreneursees the venture growing into in the future. to answer this question: “What might we become someday if our organizationwere the best possible version of itself? Drafting a vision statement is an exercise in ideation- a purposeful process ofopening up one’s mind to new trains of thought that branch out in manydirections from a stated purpose or problem A vision statement is more open-ended than a mission statement •Vision statement starting point steps: 1.State how your organization would function in a dream scenario. 2.Connect your organization’s dreams to broader hopes for progress. 3.Define how you’re going to make the world a better place in the future throughyour products and services •Ex: Teaching for America- One day, all children in this nation will have theopportunity to attain an excellent education Pitching•pitch- is a formal presentation in which you ask for something. It is delivered(usually) to potential investors in a startup •When making a pitch, it is best not only to convey the value proposition of yourproduct but to convey the value in the way that a loyal, enthusiastic consumer ofthe product (a brand advocate) would see it. Your goals become their goals. •a pitch is designed to be clear, concise, and compelling around key areas, typicallythe key problem or unmet need, the market opportunity, the innovative solution, themanagement plan, the financial needs, and any risks •Pitch audience- No matter to whom you are pitching, you usually need to includereferences to your problem-solution statement, value proposition, and key features,and how you prioritize that information will change for different audiences. Elements of a Pitch12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…7/14
•A pitch is usually presented through what is called a pitch deck, alternately called aslide deck. This is a slide presentation that you create using a program such asPowerPoint, Prezi, Keynote, or Google Slides that gives a quick overview of yourproduct and what you’re asking for. Normally 10-20 slides•Here are the six key elements of an entrepreneurial pitch:Brand Identity & Tagline- Start with a memorable brand image or logo tointroduce your product.Problem-Solution Narrative- Clearly define the problem your product solves,using visuals or a hook to engage the audience.Key Features & Value Proposition- Highlight main features and explain howyour product adds value to users.Product-Market Fit- Describe the market niche, potential demand, and whyyour product fits this need effectively.Competitive Analysis- Identify competitors and show what makes yourproduct unique, emphasizing barriers to entry.Financial Projections- Present expected financial outcomes, includingrevenue potential, market size, and profit projections•Successful pitch deck Example:Slide 1: Brand identity - Simple logo, sans-serif typeface, tagline: “Bookrooms with locals, rather than hotels.”Slide 2: Problem statement - Travelers need affordable alternatives to hotels.Slide 3: Solution & value - Web platform with key features that build bothfinancial and cultural value.Slide 4: Product-market fit - Large traveler pool (630,000 oncouchsurfing.com) and room listings (17,000 on Craigslist in SF and NY)indicate demand.Slide 5: Market size - Shows Airbnb’s share and growth potential within themarket.Slide 6: User experience - Attractive interface with a mini-narrative illustratingthe platform’s use.Slide 7: Financial projection - Revenue potential shown through simple math:10 million trips x $20 fee = $200 million revenueCH 10Learning from FailureNot everything associated with a failure is bad.Reactance: process whereby a person becomes more motivated to overcomesetbacks after experiencing one.In entrepreneurial scholarship to come, intelligent failures will even becelebratedbad failure- entrepreneur unwilling to learn; decline responsibilitygood failure- from which the entrepreneur learns, can be forgiven and/orrewarded•Failure can be seen as an opportunity to learn and improve, rather than a finaloutcome.•Key lesson: Learning to recover and try again is essential after a setback.•Example: Eric Ries’ first company failed, but he used that experience to launchIMVU, a virtual reality company.•Through this experience, he developed the lean startup method, focusing on:•Recognizing weaknesses•Getting products to market quickly•Collecting customer feedback early•Takeaway: Failure teaches resilience, adaptation, and the value of iterativeimprovementCH 11Lean Methodology•Lean startup- methodology entrepreneurs use this method to help them innovateby continuously testing their products and getting feedback from customers in realtime •Develop a lean plan 1.Write a short and simple document. 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…8/14
2.Test your MVP through the build-measure-learn loop. 3.Review your results. 4.Revise your plan •Lean plan cycle (Plan, run, review, revise) 1.Plan a lean strategy 2.Run Execution of the plan 3.Review of the results and check against milestones 4.Revision of the plan, change what didn’t work and start the whole processagain Business Model Canvas•business model- is a plan for how venture will be funded; how the venture createsvalue for its stakeholders, including customers; how the venture’s offerings aremade and distributed to the end users; and the how income will be generatedthrough this process •Has nine components: Key partners, key activities, key resources, valueproposition, customer relationships, channels, customer segments, cost structure Lean Model Canvas•Lean model canvas- It overlaps the business model canvas in five of the ninecomponents: customer segments, value proposition, revenue streams, channels,and cost structure•9 components: Problems, solutions, metrics, value proposition, customerrelationships, channels, customer segments, cost structure, and revenue streams•Key TermsCh 1careerentrepreneursomeone who takes on the daily management as the owner of the venture, accepting, andperhaps enjoying, the daily risks and rewards of managing and building the venture disruptivetechnologytechnology that once introduced, displaces established patterns, processes, and systemspreviously accepted as normal or accepted methods divergentthinkingprocess of generating as many ideas as possible, even when those ideas do not seem logical;the list of ideas can be conflicting, diverse, and disparate due diligenceconducting the necessary research and investigation to make informed decisions that minimizerisk entrepreneursomeone who identifies an idea that no one else has acted on or identified; small businessownership and franchising are also entrepreneurial options entrepreneurialmindsetawareness and focus on identifying an opportunity through solving a problem, and a willingnessto move forward to advance that idea serialentrepreneurentrepreneur who becomes involved in starting multiple entrepreneurial ventures SMART goalswell-structured and defined goals that are specific, measurable, achievable, realistic and timely socialentrepreneurentrepreneur who has an interest in solving a social, environmental, or economic problem valuepropositionsummary describing the benefits (value) customers can expect from a particular product orservice 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&w…9/14
visionstatementpicture of what the venture will become in the future or what the venture will grow into Ch 2businessmodelplan for how venture will be funded; how the venture creates value for its stakeholders, includingcustomers; how the venture’s offerings are made and distributed to the end users; and the howincome will be generated through this process capitalismsystem in which individuals, people, and companies have the freedom to make decisions andown property as well as benefit from their own efforts, with government playing a secondary rolein oversight cash flowmoney collected by the business through revenue and funding versus money disbursed by thebusiness through expenses cashmanagementmanagement of cash inflows and outflows to support cash needs of the venture corporateentrepreneurshipdevelopment of new ideas, opportunities, or ventures through formal research and developmentprocesses that focused on the corporation’s strategy and goals creativedestructiontheory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptiveforce that creates and sustains economic growth, though in the process, it destroys establishedcompanies and disrupts employment due diligenceconducting the necessary research and investigation to make informed decisions that minimizerisk e-commerceelectronic transactions, particularly over the Internet, for the exchange of goods and services entrepreneurialjourneyyour exploration to discover if entrepreneurship is right for you entrepreneurialprocessset of decisions or actions that can be outlined and followed as a guide to developing oradjusting a venture entrepreneurialspiritdescribes a quality of those individuals who are productive self-starters focused on makingchanges happen entrepreneurialventureany business, organization, project, or operation of interest that includes a level of risk in actingon an opportunity that has not previously been established frameworkstructure or outlined process that can be used to accomplish entrepreneurial goals throughproblem solving, idea generation and validation, and brainstorming franchisingform of licensing that allows the business (franchisor) to share its business model to expandthrough various distributors (franchisees) for a fee independentcontractor(also, freelancer) people or businesses that provide work similar to an employee without beingpart of the payroll for the contracting business, and who pay their own taxes and pay for theirown benefits innovationnew idea, process, or product, or a change to an existing product or process intrapreneuremployee who acts as an entrepreneur within an organization, rather than going solo milestonesignificant decision point or significant accomplishment patentlegal grant of protection for an inventor over the rights, usage, and commercialization of aninvention for a set time period serialentrepreneurentrepreneur who becomes involved in starting multiple entrepreneurial ventures situationalopportunityone that becomes available, depending on factors such as where you work, your familyobligations, your idea or invention, your unique creative expression, or a recent career search orjob change soft launch(also, soft open) launching a venture for a limited time frame or audience to gain experience,insights, and feedback about the target market or consumer target marketspecific group of consumers for which a company seeks to provide a good or service venturestartup company or organization that conducts business or is created to satisfy a need verticalintegrationstrategy of gaining control over suppliers of raw materials and distributors of finished products toexpand or control the relevant supply chain Ch 4brainstorminggeneration of ideas in an environment free of judgment or dissension with the goal of creatingsolutions creativitydevelopment of original ideas designthinkingmethod to focus the design and development decisions of a product on the needs of thecustomer, typically involving an empathy-driven process to define complex problems and createsolutions that address those problems diffusionchasmmost critical point of adoption, which often occurs at the end of the early adoption phase, beforethe early majority steps in and truly confirms (or not) the diffusion of an invention disruptiveinnovationprocess that significantly impacts the market by making a product or service more affordableand/or accessible often by smaller companies in an industry empathyhuman ability to feel what other humans are feeling, which in the context of creativity, innovation,and invention is essential to beginning a process of human-centric design 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&…10/14
ideationpurposeful process of opening up one’s mind to new trains of thought that branch out in manydirections from a stated purpose or problem incrementalinnovationinnovation that modifies an existing product or service innovationnew idea, process, or product, or a change to an existing product or process inventiontruly novel product, service, or process that, though based on ideas and products that havecome before, represents a leap, a creation truly novel and different iterativedevelopmentprocess in which inventors and innovators continuously engage with potential customers in orderto develop their products and their consumer bases at the same time lateral thinkingfree and open thinking in which established patterns of logical thought are purposefully ignoredor even challenged linear thinkinglogical, step-by-step process minimum viableproduct (MVP)early version or prototype of a product that may not be polished or complete but that functionswell enough that you can begin to market it or test it with potential users openinnovationsearching for and finding solutions outside of the organizational structure pain pointproblem that people have with a product or service that might be addressed by creating amodified version that solves the problem pioneeringinnovationone based on a new technology, a new advancement in the field, and/or an advancement in arelated field that leads to the development of a new product scientificmethodmost often associated with the natural sciences, outlines the process to discover an answer to aquestion or a problem user interfacewhat the user sees and interacts with Ch 5businessmodelplan for how venture will be funded; how the venture creates value for its stakeholders, includingcustomers; how the venture’s offerings are made and distributed to the end users; and the howincome will be generated through this process competitiveadvantagedescribes your venture’s unique benefits that poise it for growth creativedestructiontheory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptiveforce that creates and sustains economic growth, though in the process, it destroys establishedcompanies and disrupts employment customerspeople the business will be serving, including potential customers from one or more marketsegments demandneed or desire for the outputs, the product or services demographicsstatistical factors of a population or group, such as information about age, gender, income, race,or ethnicity entrepreneurialopportunitypoint at which identifiable consumer demand meets the feasibility of satisfying the requestedproduct or service and meets the following conditions: significant market demand, significantmarket structure and size, significant margins, and resources to support the venture’s success financialviabilitylong-term financial sustainability of an organization to fulfill its mission gig economymarket system in which independent contractors fill a variety of positions infrastructureall resources the entrepreneur will need in order to launch and sustain a business venture offeringactual product or service, its value proposition, and how you will reach and communicate withyour target customers opportunityscreeningprocess used to evaluate innovative product ideas, strategies, and marketing trends, focusing onfinancial resources, skills of the entrepreneurial team, and competition primaryresearchresearch that involves gathering new data secondaryresearchresearch that uses existing data sharedeconomyeconomy in which some assets are not in use, which may present an entrepreneurialopportunity supplyamount of a product or service produced SWOT analysisstrategic analytical tool used to help a potential venture or existing company identify itsstrengths, weaknesses, opportunities, and threats related to business competition unique sellingpropositionmarketer’s rationale as to why a product or service is different/better than the competitor’sproducts Ch 6adaptive modelmethod of entrepreneurial problem solving that seeks solutions in ways that are tested andknown to be effective assessmentlean problem-solving process phase in which the entrepreneur experiments and analyzes thepotential process and its capabilities brainstorminggeneration of ideas in an environment free of judgment or dissension with the goal of creatingsolutions 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&…11/14
clarifyfirst step of the creative process, which involves recognizing the existence of a gap between thecurrent state and a desired state communicationskillsskills entrepreneurs use to pool resources for the purposes of investigating solutions leading toinnovative problem solving and competitive advantage creativitydevelopment of original ideas criticalthinkingcomplex analysis of a problem or issue with the goal of solving the problem or making adecision crowdsourcingteams of amateurs and non-experts working together to form a solution to a problem data analysisprocess of analyzing data and modeling the data into a structure that leads to innovativeconclusions decisivenessability to make a quick, effective decision, not letting too much time go by in the process designthinkingmethod to focus the design and development decisions of a product on the needs of thecustomer, typically involving an empathy-driven process to define complex problems and createsolutions that address those problems developstage in which the entrepreneur takes the list of ideas generated and tests each solution forfeasibility entrepreneurialproblemsolvingprocess of using innovation and creative solutions to close the opportunity gap by resolvingcomplex societal, business, or technological problems evaluatestage in which the final solution is assessed evaluationlean problem-solving process phase in which behaviors are analyzed to assess success externalenvironmentoutside the enterprise and encompasses customers, industry trends, and competition hackathonevent, usually hosted by a tech company or organization, which brings together programmersand workers with other degrees of specialization within the company, community, or organizationto collaborate on a project over a short period of time human-centereddesignfocuses on people during design and development ideatestage of the creative problem-solving process leading to the detailing and formation of ideageneration by the entrepreneur implementmeans to enact the plan and test for success innovativemodelmethod of entrepreneurial problem solving that uses techniques unknown to the market and thatbring competitive advantage to an organization internalenvironmentcomprises the factors inside the enterprise, such as employees, and internal practices andprocesses lean processsystematic process for the maximizing of continuous improvement and the minimization ofsurplus or unused material in the production of a process needawarenessoccurs when the entrepreneur notes a gap between societal or customer needs and actualcircumstances observationlean problem-solving process phase in which the entrepreneur studies the challenge and notesall facets of the challenge requiring solution petitionerproblemsolversproblem solvers who see a problem and ask others for solution ideas resourcefulnessability to discover clever solutions to obstacles self-regulatingproblemsolversproblem solvers who are autonomous and work on their own, without external influence; theyhave the ability to see a problem, immediately visualize a possible solution to the problem, andseek to devise a solution storyboardingprocess of presenting an idea in a step-by-step graphic format team creativityprocess of a team creating an unexpected solution for an issue or challenge theoristproblemsolversproblem solvers who see a problem and begin to consider a path toward solving the problemusing a theory whiteboardingtype of graphing that permits the entrepreneur to plot each step in a process to buildcomprehension and detailing of the process Ch 7askspecific amount of money or type of assistance requested in a pitch corporatenarrativestory about how a successful company grew from something small into something broad andpowerful, serving thousands or even millions of people; it may have marketing purposes, and itmay serve as an inspirational story for leaders and employees elevator pitchabbreviated pitch, a memorized talk that can get you into the door to put your full pitch deck ondisplay entrepreneurialcontestany entrepreneurial competition other than a pitch competition; contests may entail submittingbusiness models, long-form prospectuses, or forms tailored to contest specifications fear of missingout (FOMO)need to keep up with peers and the personas they represent in social settings, particularly onsocial media icebergprinciplewriting principle useful for preparing contest documents and pitch decks; following this principle,each word or sentence in the submission or presentation should be backed up with a wealth of12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&…12/14
supporting information and details that go unspoken in the pitch or proposal, but which you haveat the ready should an investor take interest in the details and your knowledge of them ideationpurposeful process of opening up one’s mind to new trains of thought that branch out in manydirections from a stated purpose or problem missionstatementstatement of an organization’s reason for being that defines its primary long-term goal, explainswhat the venture will do, what value it will provide to the end customer, and how it willaccomplish that action noncompeteagreementformal agreement that the person signing the document will not work for another organizationthat is a direct competitor of their current employer during employment and usually for aspecified length of time after employment ends nondisclosureagreement(NDA)contract that carries harsh financial penalties should one party to the agreement disclose whatthey know of the proprietary information pitchformal presentation in which you ask for something and that is delivered (usually) to potentialinvestors in a startup pitchcompetitioncompetition that may have cash prizes or mentorship opportunities for winners; you are expectedto present your business idea in the form of a presentation, usually with a pitch deck pitch deckslide presentation that you create that gives a quick overview of your product and what you’reasking for problem-solutionnarrativebrief story of a sentence or two that states a problem affecting many people and offering asolution that is innovative, unique, insightful, or all of these user interface(UI)what a customer sees when they use your product; having a variant of a UI is not necessarilygrounds for establishing a patent, but having unique design in the broader sense may help youto secure patent protection valuepropositionsummary describing the benefits (value) customers can expect from a particular product orservice work-for-hireagreementagreement between an individual employee and a company states that ownership of innovationsbelongs to the company, even if an individual makes substantial contributions to the product Ch 10born globalventure seeking to be a global company from its inception build-measure-learn loopstep-by-step approach on how to maneuver a startup, how to change course if necessary, howto persevere, and how to accelerate the expansion of a business businessfailureending a business due to the lack of goal attainment, which can include low levels of revenueand profit, or not meeting investors’ expectations businesslifecyclestages companies go through: birth, growth (or expansion to new markets and products),maturity, decline, death or rebirth early adopterspeople who like to try new things and can be found at the onset of the adoption process for aproduct franchisingform of licensing that allows the business (franchisor) to share its business model to expandthrough various distributors (franchisees) for a fee GlobalEntrepreneurship Monitor(GEM)organization that researches entrepreneurship around the world innovationaccountingassesses whether the changes made to the product are creating the desired results iterationssmall changes to the current version of a product to make it better fit consumer needs joint venturetemporary partnership in which two different enterprises combine for the purpose of mutualbenefits such as sharing of expenses and to work toward shared goals and the associatedpotential revenue lean pitchverbal delivery of an idea or business plan as a request to a group of investors by anentrepreneur lean planbrief business plan shown to potential investors and employees that is a fast and effective way toset, manage, and evaluate goals and strategies in a business lean startupmethodology entrepreneurs use this method to help them innovate by continuously testing theirproducts and getting feedback from customers in real time licensingcontract in which one enterprise gives permission to another entity to manufacture and sell itsproducts for a royalty mergers andacquisitionswhen two companies combine, or one buys the majority stake of the other minimum viableproduct (MVP)early version or prototype of a product that may not be polished or complete but that functionswell enough that you can begin to market it or test it with potential users pivotingcrucial change done to test a hypothesis regarding the basic product, its growth potential, andbusiness model; if something is not working, then a change or a “pivot” needs to take place strategicalliancearrangement created by two entities to work on a project by sharing some of their strengths andresources, but not actually creating a new entity as in the case of a joint venture Ch 1112/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&…13/14
balance sheetfinancial statement that summarizes a company’s financial condition according to the accountingequation breakevenpointlevel of operations that results in exactly enough revenue to cover costs businessmodelplan for how venture will be funded; how the venture creates value for its stakeholders, includingcustomers; how the venture’s offerings are made and distributed to the end users; and the howincome will be generated through this process business modelcanvasdeveloped by Osterwalder and Pigneur, used to develop a business model for a venture,including nine blocks that are mapped out to address customer segments, customerrelationships, channels, revenue streams, value propositions, key partners, key activities, keyresources, and cost structure business modelinnovationoccurs when an existing business fundamentally changes their business model business planformal document that typically describes the business and industry, market strategies, salespotential, and competitive analysis, as well as the company’s long-term goals and objectives competitivematrixshows how and why a startup has a clear if not measurable competitive advantage for relevantfeatures/benefits by weight according to customers, such as price and quality in relation tocompetitors customerempathy mapportrayal of a target customer, the most promising candidate from a business’ customersegments, which explores the understanding of that person’s condition from their perspective tounderstand his or her problems and needs disruptiveinnovationprocess that significantly impacts the market by making a product or service more affordableand/or accessible often by smaller companies in an industry executivesummaryinitial section of a business plan document that summarizes the key elements of the entire plan feasibilityanalysisfeasibility analysis is the process of determining if a business idea is viable; it includes testingthe viability of your product or service, evaluating your management team, assessing the marketfor your concept, and estimating financial viability financialanalysisforecasts revenue and expenses; projects a financial narrative; and estimates project costs,valuations, and cash flow projections fixed costscosts that do not change, regardless of the amount of sales go-or-no-godecisiondetermination to proceed with or abandon a plan or project new idea, process, or product, or achange to an existing product or process innovationdeveloped by Ash Maurya as a derivation of the original business model canvas; this lean modelcanvascanvas differs by addressing unfair advantages, problems, solutions, and key metrics rather thancustomer relationships, key partners, key activities, and key resources marketanalysisanalysis of the overall interest in the product or service within the industry by its target market projected cashflowoutline of preliminary expenses, operating expenses, and reserves serviceableavailablemarket (SAM)portion of the market that a business can serve based on its products, services, and location social businessmodel canvasmodification of the business model canvas, designed for social entrepreneurship venues; newareas address impact measures around social impacts and its measurement, surplus,beneficiary segments and social and customer value propositions SWOT analysisstrategic analytical tool used to help a potential venture or existing company identify itsstrengths, weaknesses, opportunities, and threats related to business competition total availablemarket (TAM)total perceived demand for a product or service within the marketplace valuepropositionsummary describing the benefits (value) customers can expect from a particular product orservice valuepropositioncanvasone of the nine blocks on the business model canvas, this additional tool developed byOsterwalder and Pigneur is designed to illustrate a deeper dive into customer understanding andvalue creation of a business variable costscosts that fluctuate with the level of revenue 12/12/24, 8:08 PMOneNotehttps://emailsc-my.sharepoint.com/personal/oshamlou_email_sc_edu/_layouts/15/Doc.aspx?sourcedoc={f1cb647c-827f-45e7-8850-92ba92ec29fe}&action=edit&…14/14