Entrepreneurship

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Chapter 1

1. Explain entrepreneurship and discuss its importance?
* Entrepreneurship is the process by which individual pursues opportunity without regard to resource they currently control. The importance of entrepreneurship is that they plays a role in both economic and social development. Economically, for instance, formation of new business leads to job creation and has a multiplying effect. Socially entrepreneurship empowers citizens, generate innovation and changes mindsets.

2. Identify four main characteristics of successful entrepreneurs? * Passion for business: passion for business is must for any entrepreneur. The passion typically steps from the entrepreneur belief that the business will positively influence people’s life. For example, Bill Gates believes that their product will make difference in people lives and make the world a better place to live in. * Product and customer focus: This quality is exemplified by the late co-founder of APPLE, Steve Jobs who wrote “ the computer is most remarkable thing we ever built, but in the most important thing is to get them in the hands of as many people as possible”. * Tenacity despite failure: Because entrepreneur are typically trying something new failure rate are usually high. It is important, when developing a new business idea require certain experimentation before success is attained. Setbacks and failure are inevitable. Therefore litmus test for entrepreneur is their ability to persevere through setbacks and failure. * Execution intelligence: the ability to fashion a solid idea into a viable business is a key characteristic of successful entrepreneur.

3. Salary substitute - are small firm that yield a level of income for their owner. Eg; restaurant, dry cleaner, retail store. Lifestyle firm - provide their owner or owners the opportunity to pursue a particular life style and earn a living while doing so. Eg; golf pros, ski instructors and tour guides. Entrepreneurial firms - bring new products and services to market. Eg; google. Ebay. Starbucks.

4. Identify ways in which large firms benefits from the presence of smaller entrepreneurial firms. * For example; some entrepreneurial firms are original equipment manufactures, producing parts that go into products that larger firms manufacture and sell. Smaller firms produce cutting edge product that benefits larger firms. * Smaller firms has also benefit larger firms in terms of efficiency and effectiveness. They form a network that help each other. * Many instance they form a partner to reach mutually beneficial goals. Creation of business partnership allows access in partner’s resource, managerial talent and intellectual capacity which drives up companies growth.

Chapter 2

1. Explain difference between opportunity and idea?
* opportunity is favorable set of circumstances that creates a need for a new product, service, or business. Externally and internally opportunity. * Idea is a thought, an impression, or a notion. An idea may of may not meet the criteria of an opportunity. 2. Identify the five steps in the creative process?

* Preparation: is the background, experience and knowledge that an entrepreneur brings to the opportunity recognition process. * Incubation: is the stage during which a person considers an idea or thins about a problem. * Insight: it is the flash of recognition. When the idea is born. In business context, this is the moment an entrepreneur recognizes an opportunity. * Evaluation: is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability. * Elaboration: is the stage during which the creative idea is put into a final form, which is transformed idea into something valuable such as new product, services or business concept. 3. Explain the purpose of maintaining an idea bank.

- Idea bank(or vault) is a physical or digital repository for storing ideas. An...
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