Entrepreneurship Basics Quiz

Entrepreneurship

• An entrepreneur identifies and acts on an idea or problem that no one else has addressed.
• An entrepreneurial venture includes any business, organization, project, or operation involving risk in pursuing a new opportunity.
• Lifestyle ventures prioritize lifestyle for entrepreneurs over financial rewards.

Entrepreneurial Roles

• Innovators find new approaches, methods, or products that solve problems uniquely.
• Creators make something new or identify problems others haven't noticed.
• Market Makers innovate or reinvent their market by envisioning future possibilities.
• Expanders and Scalers focus on expanding existing methods, processes, or products.

Entrepreneurial Mindsets

• Entrepreneurial mindset involves identifying opportunities by solving problems and being proactive in advancing those ideas.
• Entrepreneurial spirit enables overcoming obstacles and meeting challenges with a positive attitude.
• Serial entrepreneurs start and manage multiple ventures.
• Social entrepreneurs focus on solving social, environmental, or economic problems.

Entrepreneurial Stages

• Inspiration requires a creative and innovative mindset.
• Preparation involves gathering information, organizing, and maintaining focus.
• Assessment requires evaluating resources like partners, customers, locations, and funding.
• Exploring Resources involves planning for affordability and financial sustainability.
• Business Plan helps to develop a venture, modify it before launch, and stay on track.
• Navigation involves being prepared for obstacles and making adjustments.
• Launch requires considering the target market, necessary resources, and location.

Venture Development

• Divergent thinking involves generating multiple ideas, even conflicting or unconventional ones.
• Mission statement defines a venture's reason for being, its long-term goal, and how it will deliver value to customers.
• Vision statement is a picture of what the venture will become in the future.
• Value proposition summarizes the benefits customers can expect from a product or service.
• SMART goals are specific, measurable, achievable, relevant, and timely.

Venture Funding

• Bootstrapping involves optimizing personal funds and creative strategies to minimize cash outflows.
• Cash management involves managing cash inflows and outflows to support the venture's needs.
• Break-even point is the operational level that generates enough revenue to cover costs.
• Business model outlines how a venture is funded, creates value for stakeholders, distributes offerings to customers, and generates income.
• Capitalism is an economic system that emphasizes individual freedom, private property ownership, and benefitting from one's efforts.

Venture Growth

• Independent contractor (or freelancer) provides work similar to an employee but without being part of the payroll, handling their own taxes and benefits.
• Target market is the specific group of consumers a company seeks to serve.
• Gig economy is an economic system where individuals engage in freelance or side employment.
• Benchmarking compares a company's performance to industry averages, leaders, or market segments.
• Creative destruction is a theory by Schumpeter stating that entrepreneurial innovation drives economic growth by destroying established companies and disrupting employment.
• Due diligence involves conducting research and investigation to minimize risk in decision-making.
• Patent is a legal grant offering protection over the rights, usage, and commercialization of an invention for a set period of time.