ENTRE

PRENEURSHIP
SKILLS.

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CHAPTER ONE: OVERVIEW OF ENTREPRENEURIAL MIND-SET

1. What is Entrepreneurship?
 Entrepreneurship is the process of creating something new with value by devoting the necessary
time and effort; assuming the accompanying financial, psychic, and social risks and uncertainties
and receiving the result of monetary and personal satisfaction.
 Is the dynamic process of creating incremental wealth.
2. What is Entrepreneurial opportunities?
 Are those situations in which new goods, services, raw materials, and organizing methods can
be introduced and sold at greater than their cost of production.
3. Explain the different views about the entrepreneur?
 To an economist: an entrepreneur is one who brings resources, labor, materials, and other
assets into combinations that make their value greater than before, and also one who introduces
changes, innovations, and a new order.
 To a psychologist: such a person is typically driven by certain forces--- the need to obtain or
attain something, to experiment, to accomplish, or perhaps to escape the authority of others.
 To one businessman: an entrepreneur appears as a threat, an aggressive competitor, whereas to
another businessman the same entrepreneur may be an ally, a source of supply, a customer, or
someone who creates wealth for others.
4. Who is an entrepreneur?
 is an individual who takes initiative to bundle resources in innovative ways and is willing to bear
the risk and/or uncertainty to act.
5. Define an entrepreneurial action?
 Entrepreneurial action: refers to behavior in response to a judgmental decision under uncertainty
about a possible opportunity for profit.
6. Explain the entrepreneurial process?
 Is the process of creating something new with value by devoting the necessary time and effort,
assuming the accompanying financial, psychic, and social risks and uncertainties, and receiving
the resulting rewards of monetary and personal satisfaction.
7. What is Opportunity Identification?
 Is the process by which an entrepreneur comes up with the opportunity for a new venture.
8. How entrepreneur thinks?
 Entrepreneurs think differently from non-entrepreneurs.
 Entrepreneurs must often make decisions in highly uncertain environments where the stakes are
high, time pressures are immense, and there is considerable emotional investment
9. State and explain the two types of think structurally?

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  Superficial similarities: Exist when the basic (relatively easy to observe) elements of the
technology resemble (match) the basic (relatively easy to observe) elements of the market.
 Structural similarities: Exist when the underlying mechanisms of the technology resemble (or
match) the underlying mechanisms of the market.
10. State and explain the two types of Effectuation?
 Effectuation process: a process that starts with what one has (who they are, what they know,
and whom they know) and selects among possible outcomes.
 Causal process: a process that starts with a desired outcome and focuses on the means to
generate that outcome.
11. Explain Entrepreneurial Mind-set?
 Entrepreneurial mind-set: involves the ability to rapidly sense, act, and mobilize, even under
uncertain conditions.
12. Describe Cognitive Adaptability?
 Describes the extent to which entrepreneurs are dynamic, flexible, self-regulating, and engaged
in the process of generating multiple decision frameworks focused on sensing and processing
changes in their environments and then acting on them.
13. What is Entrepreneur’s self-efficacy?
 Entrepreneur’s self-efficacy: refers to the conviction that one can successfully execute the
behavior required; people who believe they have the capacity to perform (high self- efficacy)
tend to perform well.
14. States the Entrepreneur Background and Characteristics?
 Education: Education is important in the upbringing of the entrepreneur.
 Age: The relationship of age to the entrepreneurial career process also has been carefully
research.
 Work History
15. Who can be role model to entrepreneur?
 Role models can be parents, brothers or sisters, other relatives, or other entrepreneurs.

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CHAPTER TWO: CORPORATE ENTREPRENEURSHIP

35. What is Corporate Entrepreneurship?

 Is entrepreneurial action within an established organization.
 The resistance against flexibility, growth, and diversification can, in part, be overcome by
developing a spirit of entrepreneurship within the existing organization, called corporate
entrepreneurship.
36. What are the four key elements of corporate entrepreneurship consists?
 New business venturing.
 Innovativeness.
 Self-renewal.
 Pro-activeness.
37. Define new business venturing/corporate venturing?
 Refers to the creation of a new business within an existing organization.
38. Explain the Causes for Interest in Corporation Entrepreneurship?
 Interest in entrepreneurship within established businesses has intensified due to a variety of
events occurring on social, cultural, and business levels.
 On a social level, there is an increasing interest in “doing your own thing” and doing it on one’s
own terms.
39. Managerial Versus Entrepreneurial Decision Making?
Entrepreneurial focus Conceptual Dimension
Driven by perception of opportunity Strategic orientation
Revolutionary with short duration Commitment of opportunity
Many stages with minimal exposure Commitment of resources

Administrative focus Conceptual Dimension

Driven by controlled resources Strategic orientation
Evolutionary with long time duration Commitment of opportunity
A single stage with complete commitment Commitment of resources

40. What is strategic orientation?

 refers to those factors that are inputs into the formulation of the firm’s strategy.
41. What is culture?
 Means the environment of a particular organization
42. Outline the steps of establishing a culture for corporate entrepreneurship?
 The first: is that the organization operates on the frontiers of technology.
 Second: entrepreneurial firms encourage experimentation to facilitate trial-and-error learning.
 Third: entrepreneurial firms remove obstacles to creativity in the new product development
process.

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43. What is characteristics of corporate entrepreneurs?
 Understands the environment
 Is visionary and flexible
 Creates management options
 Encourages open discussion
 Builds a coalition of supporters
 persists
44. Outline the steps of stablishing corporate entrepreneurship in organization?
 The first step: in this process is to secure a commitment to corporate entrepreneurship in the
organization by top, upper, and middle management levels.
 Second: ideas and general areas that top management is interested in supporting should be
identified, along with the amount of risk money that is available to develop the concept further.
 Third: a company needs to use technology to make it more flexible.

45. How entrepreneur learning from failure?

 Entrepreneurs can avoid such mistakes in the future and/or do a better job of managing the
uncertainties associated with entrepreneurial action
46. What is a dual process model?
 Coping with negative emotions or grief recovery can more quickly recover from the negative
emotions generated by the failure of an entrepreneurial initiative.
47. What is loss orientation?
 Involves focusing on the loss event to create an account of the failure.
48. What is Restoration orientation?
 This orientation involves distracting oneself from thinking about the failure and focusing one’s
energy on addressing other (secondary) problems that have arisen as a result of the failure.

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CHAPTER THREE: ENTREPRENEURIAL STRATEGY

49. What is new entry?

 Offering a new product to an established or new market, offering an established product to a
new market, or creating a new organization.
50. What is Entrepreneurial strategy?
 Is the set of decisions, actions, and reactions that first generate, and then exploit over time, a
new entry.
51. What are the keys elements of Entrepreneurial strategy?
 The generation of a new entry opportunity,
 The exploitation of a new entry opportunity,
 A feedback loop
52. Explain how Resources as a Source of Competitive Advantage?
 When a firm engages in a new entry, it is hoped that this new entry will provide the firm with a
sustainable competitive advantages.
53. What is Resources?
 Are the basic building blocks to a firm’s functioning and performance
54. Explain Market Knowledge?
 Means the possession of information, technology, know-how, and skills that provide insight into
a market and its customers.
55. Explain Technology knowledge?
 Means possession of information, technology, know-how, and skills that provide insight into ways
to create new knowledge
56. What is the mean by more prior knowledge?
 Means that the entrepreneur starts form a position of less ignorance about the assessment task
at hand.
57. How to assess the Attractiveness of a New Entry Opportunity?
 Information on New Entry:
 Prior Knowledge and Information Search the prior market and technological knowledge used to
create the potential new entry can also be of benefit in assessing the attractiveness of a
particular opportunity
58. List and explain the two types of Making a Decision under Uncertainty?
 An error of commission: occurs from the decision to pursue this new entry opportunity, only to
find out later that the entrepreneur had overestimated his or her ability to create customer
demand.
 An error of omission: occurs from the decision not to act on the new entry opportunity, only to
find out later that the entrepreneur had underestimated his or her ability to create customer
demand.

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59. List and explain Advantages and disadvantages of first movers?
 Cost advantages: costs are reduced because the firm can spread its fixed costs over a greater
number of units (economies of scale) as well as learn by trial and error over time (learning curve)
to improve products and processes.
 Less competition: although first movers might initially have only a few customers, if they have
correctly assessed the opportunity, the market will grow rapidly.
 Secure important channels: first movers have the opportunity to select and develop strong
relationships with the most important suppliers and distribution channels.
❖ Disadvantages:

 Environmental instability
 Customer Uncertainty
 Short lead time
60. What the performance of a firm depends for?
 The fit between its bundle of resources and the external environment.
61. Explain demand uncertainty?
 First movers have little information upon which to estimate the potential size of the market and
how fast it will grow.
62. Explain lead time?
 The grace period in which the first mover operates in the industry under conditions of limited
competition.
63. What is Building Customer Loyalties?
 First movers need to establish their firms and their products in the minds of their customers and
thus build customer loyalty.
64. What is Risk?
 The probability, and magnitude, of downside loss. Which could result in bankruptcy.
65. What is scope?
 Is a choice by the entrepreneur about which customer groups to serve and how to serve them
66. Explain the Narrow-Scope Strategy?
 A narrow-scope strategy offers a small product range to a small number of customer groups to
satisfy a particular need.
67. Explain the Broad-Scope Strategy?
 A broad-scope strategy can be thought of as taking a “portfolio” approach to dealing with
uncertainties about the attractiveness of different market segments.
68. Explain the Imitation Strategies?
 Imitation involves copying the practices of other firms, whether those other farms are in the
industry being entered or from related industries.
69. State and explain the types Managing Newness?
 Liabilities of Newness: Negative implications arising form an organization’s newness.
 Assets of Newness: new firms that their lack of established routines, systems, and processes
means that they have a clean slate, which give them learning advantages over older firms.

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