Finance Study Guide
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Four Types of entrepreneurial ventures are: Marginal/Survival, Lifestyle, Managed Growth and High/Aggressive Growth.
Key Characteristics: (Types of Ventures handout)
Implications:
Time horizon and expectations
Cost structure and resource commitments
Financing – debt versus equity
Partners and kinds you choose
Ongoing cash flow management and its role
Exit strategy
Venture: aggressive growth – looking to scale across the US and perhaps international countries
3. It is useful to approach entrepreneurship as a process because it requires considerable thought, preparation and planning as well as rigor and discipline. Entrepreneurship is opportunity obsessed, holistic in approach, and leadership balanced for the purpose of value creation and capture.
Entrepreneurship Process:
Three issues that need to be addressed at teach state to launch Tablet Teach would be
One must be the most entrepreneurial in the ____ stage. **need to find answer for this**
5. No entrepreneurs are not born and there is no particular prototype that one has to fit. The individual just has to have an opportunity not money, strategy, networks, team, business plan, etc to start a venture.
Key Traits of an entrepreneur:
Achievement Motivation
Internal Locus of Control
Calculated Risk-taking
Tolerance of Ambiguity
Independence
Persistence/Perseverance/Tenacity
Key Competencies:
Ability to learn
Social abilities
Adaptation
Guerrilla capabilities
Ability to formulate and convey a vision
Opportunity recognition
Opportunity assessment
Creative problem-solving
Risk mitigation
Resource leveraging
Creative problem solving
Planning something from nothing
Implementation of something new
Key Cognitive Styles:
Cognitive biases (optimism bias, illusion of control, law of small numbers)
Entrepreneurial alertness: motivated propensity to formulate an image of the future; to process information differently, challenge assumptions, and see opportunity where others don’t
Signal detection: tendency to be more concerned with recognizing stimuli that are present than correctly concluding stimuli are not present
Prospect theory: tendency to focus more on opportunities for gain they will forfeit if they overlook an opportunity; E’s prefer to avoid loss when focusing on gains but seek risk when focusing on losses.
Regulatory focus: E’s regulate their behavior from more of a promotion (emphasis on accomplishment and multiple options) than a prevention (avoiding negative outcomes, considering fewer options) emphasis.
Founder of Tablet Teach: took the risk to take his recommended opportunity to a client on his own
7. Different types of entrepreneurs:
Personal achiever (Classic Entrepreneur)
High need for achievement and performance feedback
Desire to plan and set goals; strong individual initiative
Strong personal commitment and identification with organization
Super salesperson
Capacity to understand and feel others; to empathize; desire to help others
Social processes are important so are social interaction and relationships
Sales force is crucial to carrying out company strategy
Real manager
Desire to be a corporate leader; compete, decisive, desire for power,
Positive attitudes to authority, desire to stand out from the crowd.
Expert idea generator
Desire to innovate; love of ideas, curious and open minded; new product development is crucial to company strategy
Intelligence is a source of competitive advantage; desire to avoid taking risks
Closest type for me is cross between super salesperson and real manager
Implications: constant desire for social interaction may be distracting or inhibit significant growth for future ventures. Strong competitive desire and for power may be seen as intimidating or decisive to others
9. Promoter: more entrepreneurial focused; expects change and welcomes it; looks for resources;
external pressures = opportunity to exploit
Trustee/Administrative: thinks unpredictability is danger; thinks resources are controlled and tries to deplete them; defensive
I think I am more of a promoter due to my willingness to look for change and see it as a good thing. I see that when people are “stuck” in their own ways or do things because that’s how it’s “always been done” is an impediment to success and innovation.
Managers must be able to wear both hats because certain situations required a mix of both to be able to make the most effective decisions. Trustees look to reduce risk which is an attribute that a promoter would need to learn. On the other hand, trustees would need to learn to adapt to change in an increasingly dynamic and flexible world