ENT3003 EXAM 3 REVIEW

Chapter 3
Entrepreneurial opportunity * The fundamental difference between an idea and an opportunity is that the entrepreneur extracts value from the idea * 2 fundamental theories on how opportunities happen * Discovery theory – arising from shifts in external factors in the market or industry * Creation theory – that there is no single coherent theory, but a number of assumptions about contexts and behaviors that don’t fall within the realm of discovery theory
Creativity
* Enables entrepreneurs to differentiate their business * Is the basis for invention * Critical skill for recognizing or creating opportunity

Wallas’s four stages of the creative process * Preparation * Incubation * Illumination * Verification

Challenges to creativity * 3 Main types of roadblocks * Personal * Problem solving * Environmental * No time for creativity * One of the biggest contributors to this is multitasking * No confidence

Developing creative skill * Design an environment to stimulate creativity * Keep a log of ideas * Most business concepts come from existing ideas on which the entrepreneur makes improvements * Take advantage of personal network * Return to childhood

Techiniques to generate ideas * Define the problem * Restate the problem * Identify the pros/cons for potential solutions * Develop a decision tree * Brainwriting * Connecting unrelated concepts * Attribute identification * Restating the problem

Innovation * Schumpeter five categories * New product or substantial change in an existing product * New process * New market * New sources of supply * Changes in an industrial organization

Chapter 4
Drucker’s 5 questions on the business model