Read the summary and the most important questions on Essentials of Business Entrepreneurship

• Tentamen

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• Which two stages does entrepreneurship have?

  • discovery

  
  - repeatable: something you can do over and over
  - scalable: can be executed on a larger scale
  --> in the beginning costs a lot of resources, energy. you're losing money by finding the right business model. so reduce the costs as much as possible. risks and costs are higher for big companies so grow needs to be scalable.
  - interact early with the customers
  
  

  • execution

  
  - executing a repeatable and scalable business model. 

• why does entrepreneurship requires that people hold different beliefs about value of resources (two reasons) (shane)

  1. entrepreneurship involves joint production, where several different resources have to be brought together to create the new product of service. for the entrepreneur to obtain control over these resources in a way that makes the opportunity profitable, his of her conjecture about the accuracy of resources prices must differ from those of resource owners and other potential entrepreneurs (must see the different values to products)
  2. if all people possessed the same entrepreneurial profit, dividing it to the point that the incentive to pursue the opportunity was eliminated. 

• what is the difference between creation and discovery theory?

  discoverymountain climbing: opportunities are already there and entrepreneurs find them before other do
  
  creationmountain building: competitive imperfections in the markets are created by the actions of entrepreneurs.

• What is the problem/solution fit

  - start with the customer: who is it, customer segmet. what is the problem they are experiencing. narrow it down or else get different answer and might build the wrong solutions
  
  - early adoptors: first to try the product. keenly aware of pain and activly searching for a solution
  
  - what are you solving and how are customers solving these problems today?

• In what ways can entrepreneurship (education) be a usefull skill to entrepreneurs and non entrepreneurs?

  - it is a driver of social change: not merely a career option or fallback in cases of employer downsizing or economic downturns
  
  - problem solving: may be applied to a wide variety of issues of human well-being and social improvement.   --> skills

• what is the difference between the managerial logic and the control based logic?

  managerial: causal reasoning: prediction based, planned. 
  ex: you get ingredients to reach a particular goal. this works with existing businesses but not with entrepreneurship because there are a lot of outcomes you don't know.
  
  control based: what kind of food do we have? you have the resources and then you start. it is ambigious.

• what is the difference between causation and effectuation?

  causation: logic of prediction: causation processes take a particular effect as given and focus on selecting between means to create that effect
  
  effectuation: logic of control: effectuation processes take a set of means as given and focus on selecting between possible effects that can be created with that set of means.

• What is the difference between a managed economy and an entrepreneurial economy?

  managed economyafter ww -> large companies.

  • factors of production: capital, labor and natural resources, main sources of competitive advantage
    
  • dominant role of large entreprises in the economy
  • stability, specialization, homogeneity, scale, certainty, predictability, incremental innovations

  
  
  entrepreneurial economy

  • knowledge (R&D, human capital, patented inventions) main source of competitive advantage
  • entrepreneurship as engine of growth
  • flexibility, turbulence, diversity, innovation, linkages, clustering, disruptive innovations

• what is the 3 stage model of economic development?

  1. factor driven economies (primary)

  
  

  • agriculture, mining, natural resources
  • weak institutions, poor infrastructure, macro econoimc, instability, poor healthcare, basic schooling

  
  
  2. efficiency-driven economies (secondary sector)
  

  • manufacturing, industry
  • efficient product and services market; good higher education; efficient labour market; reliable financial markets. supply of cheap labour

  
  
  3. innovation-driven economies (tertiary sector)
  

  • services and knowledge
  • entrepreneurship, innovation, internationalization

  
  
  the higher you get the more value you get. 

• why must governement care about the difference between IDE and SME?

  • government s who are looking to create jobs
    
  • Organizations enthusiastic efforts to support entrepreneurship fail to achieve the results they desire, precisely because they try to address SME and IDE entrepreneurship through a singular organization.
    
  • There needs to be two separate support structures for these two types that have different support personnel and different programs.
    
  • Organizations that intend to support either IDE or SME need different metrics for success and should be judged over a different timeframe.