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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 1

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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual

Ace your coursework with Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual, designed to simplify complex topics.

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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 1 preview imageFirst ScreenFrom “Preparing Effective Business Plans” by Bruce R. BarringerPart 1: Strength of Business IdeaFor each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)score.Low Potential (-1)Moderate Potential (0)High Potential (+1)1.Extent to which theidea:Takes advantage ofan environmentaltrendSolves a problemAddresses anunfilled gap in themarketplaceWeakModerateStrong2.Timeliness of entry tomarketNot timelyModerately timelyVery timely3.Extent to which theidea “adds value” forits buyer or end userLowMediumHigh4.Extent to which thecustomer is satisfiedby competingproducts that arealready availableVery satisfiedModerately satisfiedNot very satisfiedor ambivalent5.Degree to which theidea requirescustomers to changetheir basic practicesor behaviorsSubstantial changesrequiredModerate changesrequiredSmall to no changesrequired
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 2 preview image
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 3 preview imagePart 2: Industry-Related IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Number ofcompetitorsManyFewNone2.Stage of industry lifecycleMaturity phase ordecline phaseGrowth phaseEmergence phase3.Growth rate ofindustryLittle or no growthModerate growthStrong growth4.Importanceofindustry’s productsand/or services tocustomers“Ambivalent”“Would like to have”“Must have”5.Industry operatingmarginsLowModerateHighPart 3: Target Market and Customer-Related IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Identification oftarget market for theproposed new ventureDifficult to identifyMay be able to identifyIdentified2.Ability to create“barriers to entry” forpotential competitorsUnable to createMay or may not be ableto createCan create3.Purchasing power ofcustomersLowModerateHigh4.Ease of makingcustomers aware ofthe new product orserviceLowModerateHigh5.Growth potential oftarget marketLowModerateHigh
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 4 preview imagePart 4: Founder- (or Founders-) Related IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.Founder or foundersexperience in theindustryNo experienceModerate experienceExperienced2.Founder or foundersskills as they relate tothe proposed newventure’s product orserviceNo skillsModerate skillsSkilled3.Extent of the founderor foundersprofessional andsocial networks in therelevant industryNoneModerateExtensive4.Extent to which theproposed new venturemeets the founder orfounders personalgoals and aspirationsWeakModerateStrong5.Likelihood that ateam can be puttogether to launchand grow the newventureUnlikelyModerately likelyVery likelyPart 5: Financial IssuesLow Potential (-1)Moderate Potential (0)High Potential (+1)1.InitialcapitalinvestmentHighModerateLow2.Number of revenuedrivers (ways inwhich the companymakes money)OneTwo to threeMore than three3.Time to break evenMore than twoyearsOne to two yearsLess than one year4.Financialperformance ofsimilar businessesWeakModestStrong5.Ability to fund initialproduct (or service)development and/orinitial startupexpenses frompersonal funds or viabootstrappingLowModerateHigh
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 5 preview imageOverall PotentialEach part has five items. Scores will range from -5 to +5 for each part. The score is aguide—there is no established rule-of-thumb for the numerical score that equates to highpotential, moderate potential, or low potential for each part. The ranking is a judgmentcall.Score(-5 to +1)Overall Potential of theBusiness Idea Based onEach PartSuggestions forImproving thePotentialPart 1:Strength of BusinessIdeaHigh potentialModerate potentialLow potentialPart 2:Industry-RelatedIssuesHigh potentialModerate potentialLow potentialPart 3:Target Market andCustomer-RelatedIssuesHigh potentialModerate potentialLow potentialPart 4:Founder- (orFounders-) RelatedIssuesHigh potentialModerate potentialLow potentialPart 5:Financial IssuesHigh potentialModerate potentialLow potentialOverall AssessmentHigh potentialModerate potentialLow potentialSummary—briefly summarize your justification for your overall assessment:
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 6 preview imageEntrepreneurshipSixth EditionBruce R. BarringerDuane IrelandNew York, NYInstructor’s Resource Manual(Download only) forEntrepreneurship: SuccessfullyLaunching New VenturesRam Subramanian
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 7 preview imageiTABLE OF CONTENTSPart 1Chapter Outlines,Answers to Boxed Features Questions,Answers to End-of-Chapter Questions,Analysis of“You Be theVC”Exercises, and CasesChapter 1Introduction toEntrepreneurship1Chapter 2RecognizingOpportunitiesandGenerating Ideas23Chapter 3FeasibilityAnalysis44Chapter 4Developing anEffectiveBusiness Model67Chapter 5Industry and CompetitorAnalysis87Chapter 6Writing aBusinessPlan111Chapter 7PreparingtheProperEthicalandLegalFoundation135Chapter 8Assessinga New Venture’sFinancial Strengthand Viability161Chapter 9Building aNew-VentureTeam183Chapter 10GettingFinancingor Funding202Chapter 11UniqueMarketingIssues224Chapter 12The Importance ofIntellectualProperty246Chapter 13Preparingfor andEvaluatingthe Challenges ofGrowth268Chapter 14Strategies forFirm Growth288Chapter 15Franchising308Part 2Sample Course Outlines332Part3Student and Instructor Resources336
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 8 preview imagePart 2: Sample Course Outlines332PART 2SAMPLE COURSE OUTLINESSample Weekly ScheduleEntrepreneurshipBased on 15-Week Semester(Class Meets Twice a Week)DateTopicAssignedReadingWeek 1:Class 1Introduction to EntrepreneurshipChapter 1Week 1:Class 2Introduction to EntrepreneurshipCase 1.1 or Case 1.2You Be the VC 1.1 or You Be the VC 1.2Chapter 1Week 2:Class 1Recognizing Opportunities and Generating IdeasChapter 2Week 2:Class 2Recognizing Opportunities and Generating IdeasCase 2.1 or Case 2.2Chapter 2Week 3:Class 1Feasibility AnalysisChapter 3Week 3:Class 2Feasibility AnalysisYou Be the VC 3.1 or You Be the VC 3.2Chapter 3Week 4:Class 1Developing an Effective Business ModelChapter 4Week 4:Class 2Developing an Effective Business ModelCase 4.1 or Case 4.2Chapter 4Week 5:Class 1Industry and Competitor AnalysisChapter 5Week 5:Class 2Guest Speaker—To discuss the topic of developing theimportance of a firm’s industry to its success;Local Successful EntrepreneurWeek 6:Class 1Individual Exam #1Chapters 1–5Week 6:Class 2Writing a Business PlanCase 6.1 or Case 6.2Chapter 6Week 7:Class 1PreparingtheProper Ethical and Legal FoundationChapter 7Week 7:Class 2PreparingtheProper Ethical and Legal FoundationCase 7.1You Be the VC 7.1 or You Be the VC 7.2Chapter 7Week 8:Class 1Assessing a New Venture’s Financial Strength andViabilityChapter 8Week 8:Class 2Assessing a New Venture’s Financial Strength andViabilityCase 8.1 or Case 8.2You Be the VC 8.1 or You Be the VC 8.2Chapter 8
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 9 preview imagePart 2: Sample Course Outlines333Week 9: Class 1Building a New-Venture TeamChapter 9Week 9: Class 2Building a New-Venture TeamCase 9.1 or Case 9.2Chapter 9Week 10: Class 1Getting Financing or FundingChapter 10Week 10: Class 2Guest Speaker on Getting Funding or Financing;Local Venture Capitalist or Business AngelCase 10.1Week 11: Class 1Individual Exam #2Chapters 6–10Week 11: Class 2Unique Marketing IssuesCase 11.2Chapter 11Week 12: Class 1The Importance of Intellectual PropertyChapter 12Week 12: Class 2The Importance of Intellectual PropertyCase 12.1 or Case 12.2Chapter 12Week 13: Class 1Preparing for and Evaluating the Challenges of GrowthChapter 13Week 13: Class 2Preparing for and Evaluating the Challenges of GrowthYou Be the VC 13.1 or You Be the VC 13.2Case 13.1Chapter 13Week 14: Class 1Strategies for Firm GrowthChapter 14Week 14: Class 2Strategies for Firm GrowthCase 14.1 or Case 14.2Chapter 14Week 15: Class 1FranchisingChapter 15Week 15: Class 2FranchisingCase 15.1 or Case 15.2Chapter 15Final ExamAdministered During Final WeekChapters 11–15 orcomprehensive
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 10 preview imagePart 2: Sample Course Outlines334Sample Weekly ScheduleEntrepreneurshipBased on 15-Week Semester(Class Meets Once a Week)DateTopicAssignedReadingWeek 1Introduction to EntrepreneurshipCase 1.1 or Case 1.2You Be the VC 1.1 or You Be the VC 1.2Chapter 1Week 2Recognizing Opportunities and Generating IdeasCase 2.1 or Case 2.2Chapter 2Week 3Feasibility AnalysisCase 2 in the Case AppendixYou Be the VC 3.1 or You Be the VC 3.2Chapter 3Week 4Developing an Effective Business ModelCase 4.1 or Case 4.2Chapter 4Week 5Industry and Competitor AnalysisGuest Speaker—To discuss the topic of developing theimportance of a firm’s industry to its success;Local Successful EntrepreneurChapter 5Week 6Individual Exam #1Chapters 1–5Writing a Business PlanCase 6.1 or Case 6.2Chapter 6Week 7PreparingtheProper Ethical and Legal FoundationCase7.1You Be the VC 7.1 or You Be the VC 7.2Chapter 7Week 8Assessing a New Venture’s Financial Strength andViabilityCase 8.1 or Case 8.2You Be the VC 8.1 or You Be the VC 8.2Chapter 8Week 9Building a New-Venture TeamCase 9.1 or Case 9.2Chapter 9Week 10Guest Speaker on GettingFinancing orFunding;Local Venture Capitalist or Business AngelCase 10.1Chapter 10Week 11Individual Exam #2Chapters 6–10Unique Marketing IssuesCase 11.2Chapter 11
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 11 preview imagePart 2: Sample Course Outlines335Week 12The Importance of Intellectual PropertyCase 12.1 or Case 12.2Chapter 12Week 13Preparing for and Evaluating the Challenges of GrowthYou Be the VC 13.1 or You Be the VC 13.2Case 13.1Chapter 13Week 14Strategies for Firm GrowthCase 14.1 or Case 14.2Chapter 14Week 15FranchisingCase 15.1 or Case 15.2Chapter 15Final ExamAdministered During Final WeekChapters 11–15 orcomprehensive
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 12 preview imagePart 3: Student and Instructor Resources336PART 3STUDENT AND INSTRUCTOR RESOURCESThis portion of the Instructor’s Manual contains resources that may be helpful to you andyour students throughout the course of the semester.LIST OF USEFUL WEB SITES IN THE TEACHING OF ENTREPRENEURSHIPEntrepreneurship-Focused PeriodicalsPeriodicalWeb Site AddressBloomberg Businessweekwww.businessweek.comEconomisthttp://www.economist.com/Entrepreneurwww.entrepreneur.comFast Companywww.fastcompany.comHarvard Business Reviewhttps://hbr.orgHome Business Journalwww.homebusinessjournal.netHome Business Magazinewww.homebusinessmag.com/Inc.www.inc.comIndustry Weekwww.industryweek.com/Minority Business Entrepreneurwww.mbemag.comMIT Technology Reviewwww.technologyreview.comSan JoseMercury Newswww.mercurynews.com/Small Business Opportunitieswww.sbomag.comThe Business Journalswww.bizjournals.comThe Wall Street Journalwww.wsj.comWiredwww.wired.comEntrepreneurship-Focused Web Sites (general information)Web SiteWeb Site Address3 Day Startuphttp://3daystartup.org/All Businesswww.allbusiness.comAmerica’s SBDChttp://americassbdc.org/Austin Startuphttp://austinstartup.com/BizFilingswww.bizfilings.comBizStats.comwww.bizstats.comBloomberg Business Week Small Businesswww.businessweek.com/smallbizBoth Sides of the Tablehttp://www.bothsidesofthetable.com/BusinessFinance.comwww.businessfinance.comCEO (Collegiate Entrepreneurs’Organization)http://www.c-e-o.org/
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 13 preview imagePart 3: Student and Instructor Resources337College Startuphttp://www.collegestartup.orgDorm Room Fundhttp://dormroomfund.comeCornerhttp://ecorner.stanford.edu/Entrepreneurship.orgwww.entrepreneurship.org/Entrepreneurship Education on the Webhttp://eweb.slu.eduEscape From CubicleNationhttp://www.escapefromcubiclenation.com/Global Entrepreneurship Monitorwww.gemconsortium.orgGlobal Student Entrepreneur Awardswww.gsea.orgGrowththinkwww.growththink.comHacker Newshttps://news.ycombinator.com/Harvard Business School Entrepreneurshttp://www.hbs.edu/entrepreneurship/Idea Caféwww.businessownersideacafe.comImmpreneurhttp://immpreneur.comMixerywww.mixery.comMorebusinesswww.morebusiness.comNational Association for the Self-Employedhttp://www.nase.org/National Federation of IndependentBusinesswww.nfib.comOnStartupswww.onstartups.comPaul Graham’s Essayshttp://www.paulgraham.com/articles.htmlRed Herringwww.redherring.comSEC Filingswww.sec.gov/edgar.shtmlSmall Business Advisorwww.isquare.comSmall Business Labshttp://www.smallbizlabs.com/Small Business Trendswww.smallbiztrends.comStartup Company Lawyerhttp://www.startupcompanylawyer.com/Startup Digesthttps://www.startupdigest.com/Startup Nationhttp://www.startupnation.com/Startup Weekendhttp://startupweekend.org/Steve Blankwww.steveblank.comSTVP Educators Corner (Stanford)http://edcorner.stanford.eduTechCrunchhttp://techcrunch.com/The Franchise Kinghttp://www.thefranchiseking.com/The Lean Startuphttp://theleanstartup.com/The Maverick CEOhttp://maverick-ceo.com/TheSelfEmployedwww.theselfemployed.comUnder30CEOhttp://under30ceo.com/UFundedwww.ufunded.comU.S. Small Business Administrationwww.sba.govVenture Beathttp://venturebeat.com/Venture Hackshttp://venturehacks.com/Yahoo!Financehttp://biz.yahoo.com/ic/index.htmlYoungUpstartshttp://www.youngupstarts.com/
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 14 preview imagePart 3: Student and Instructor Resources338Entrepreneurship-Focused Web Sites (specific information)Web SiteWeb Site AddressAngel Investor Newswww.angel-investor-news.comAngelListhttps://angel.coBizPlanItwww.bizplanit.comBizStatswww.bizstats.comBPlanswww.bplans.comBusinessFinance.comwww.businessfinance.comCenter for Business Planningwww.businessplans.orgCenter for Rural Entrepreneurshiphttp://www.energizingentrepreneurs.org/Chic CEOhttp://www.chic-ceo.com/Cool Business Ideaswww.coolbusinessideas.comCollabFinderwww.collabfinder.comCollegiate Entrepreneurs Organizationwww.c-e-o.orgCrunchBasewww.crunchbase.comDuck Tape Marketinghttp://www.ducttapemarketing.com/Dutiee (SocialStartups)www.dutiee.comE2 Environmental Entrepreneurshipwww.e2.orgEpicLaunchhttp://epiclaunch.com/Evan Carmichaelwww.evancarmichael.comFambiz.com (family business)www.fambiz.comFindLawhttp://biz.findlaw.comFit Small Businesshttp://fitsmallbusiness.com/FundersClubhttps://fundersclub.com/Franchise.comwww.franchise.comFranchise Directwww.franchisedirect.comFranchise Opportunitieshttp://www.franchiseopportunities.com/IRS—Small Businesshttp://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Small-Business-and-Self-Employed-Tax-Center-1Knowledge @ Whartonhttp://knowledge.wharton.upenn.edu/Ladies Who Launchwww.ladieswholaunch.comMarketwatch From Dow Joneswww.marketwatch.comMicrosoft Business Hubhttp://www.microsoft.com/en-us/business/Money Tree Reportwww.pwcmoneytree.comNASDAQwww.nasdaq.comNational Business Incubation Associationwww.nbia.orgNational Inventor Fraud Centerwww.inventorfraud.comNational Venture Capital Associationwww.nvca.orgQuorawww.quora.comQuirkywww.quirky.com
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 15 preview imagePart 3: Student and Instructor Resources339ReadWritehttp://readwrite.com/RealTimeBoardhppp://realtimeboard.comSCOREhttps://www.score.org/SEC Edgar Databasewww.sec.gov/edgar.shtmlService Corps of Retired Executiveswww.score.orgSmall Business State Economic Profileshttps://www.sba.gov/category/advocacy-navigation-structure/research-and-statistics/state-economic-profilesSpringwisehttp://www.springwise.com/Startup Lawyerwww.startuplawyer.comThe Capital Connectionwww.capital-connection.comThe Center for Venture Researchhttps://paulcollege.unh.edu/cvrVentureWellwww.venturewell.orgUnassumerwww.unassumer.comU.S. Patent and Trademark Officewww.uspto.gov/Valuation Resourceswww.valuationresources.comYahoo! IPO Newshttp://biz.yahoo.com/reports/ipo.htmlYEChttp://yec.coEntrepreneurship-Focused BlogsBlogWeb Site AddressA VC—Musings of a VC in NYChttp://avc.blogs.comAsk the VChttp://www.askthevc.com/wp/Be Excellenthttp://www.sixdisciplines.com/_blog/The_Six_Disciplines_BlogBen Casnochahttp://casnocha.com/blogBusiness Opportunity Blogwww.businessopportunity.comBusiness Opportunities Weblogwww.business-opportunities.bizCanadian Entrepreneurhttp://canentrepreneur.blogspot.com/Dan Dodge on the Next Big Thinghttp://dondodge.typepad.com/David Cancelhttp://davidcancel.com/Dave McClurehttp://500hats.com/Entrepreneurs-Journeywww.entrepreneurs-journey.comFeldThoughtswww.feld.comFor Entrepreneurshttp://www.forentrepreneurs.com/Guy Kawasaki’s Bloghttp://blog.guykawasaki.com/InnovationNethttp://venture2.typepad.com/innovationnet/John Battelle’s Searchbloghttp://battellemedia.comJordan Cooper’sBloghttp://jordancooper.wordpress.com/Pamela Slimhttp://pamelaslim.com/blog/Paul Allenwww.paulallen.netPaul Grahamhttp://paulgraham.com/Practice Trumps Theoryhttp://practicetrumpstheory.com/
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 16 preview imagePart 3: Student and Instructor Resources340Rajesh Settyhttp://www.rajeshsetty.com/Redeye VChttp://redeye.firstround.comSeth Godin Blogwww.sethgodin.com/sg/Signal vs. Noisehttps://signalvnoise.com/postsSilicon Prairie Newshttp://siliconprairienews.com/Small Business Ideas Bloghttp://www.smallbusinessideasblog.com/Start Up Bloghttp://startupblog.wordpress.com/Social Entrepreneurship Blogwww.socialroi.comThe Entrepreneurial Mindhttp://www.drjeffcornwall.com/ThisIsGoing To Be Big…http://www.thisisgoingtobebig.com/Tony Wrighthttp://www.tonywright.com/VentureBeatwww.venturebeat.comVentureBlogwww.ventureblog.comYoungEntrepreneurwww.youngentrepreneur.com/blogXconomyhttp://www.xconomy.com/Entrepreneurship-Focused PodcastsPodcastWeb Site AddressEntrepreneur on Firehttp://www.entrepreneuronfire.com/Got Invention Radio Podcastwww.gotinvention.com/Foundationhttp://foundation.bzHBR Idea CastAccess via iTunesMixergywww.mixergy.comPRI: Social EntrepreneurshipAccess via iTunesStanford Entrepreneurial Thought Leadershttp://ecorner.stanford.edu/podcasts.htmlStartups for the Rest of Ushttp://www.startupsfortherestofus.com/This Week in Startupshttp://thisweekinstartups.com/Entrepreneurs and Organizations to Follow on TwitterEntrepreneurTwitter AccountAltucher, James—Author and Blogger@jaltucherBaer, J—Austin, TX Entrepreneur@JoshuaBaerBlank, Steve—Lean Startup Advocate@sgblankBranson, Richard@RichardBransonConway, Ron—Angel Investor@RonConwayCreative Sandbox@CreativeSandboxCuban, Mark—Shark Tank Shark@mcubanDorsey,Jack—Co-founder of Twitter@JackEntrepreneur Magazine@EntMagazineEntrepreneurs@EntrepreneursQFast Company@FastCompany
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 17 preview imagePart 3: Student and Instructor Resources341Feld, Brad—Venture Capitalist@bfeldFerris, Tim—Author of 4-Hour Workweek@TferrisFOXBusiness@FoxBusinessGerber, Michael—Author@MichaelEGerberGladwell, Malcolm—Author@GladwellGodin, Seth—Author@thisissethsblogGoogle for Entrepreneurs@googleforentrepreneursHsieh, Tony—CEO of Twitter@tonyhsiehInc Magazine@IncInnovation America@Innovation DailyInnovation LLC@innovationJohn, Daymond—Shark Tank Shark@TheSharkDaymondKauffman Foundation@KauffmanFDNKawasaki, G—EntrepreneurandAuthor@GuyKawasakiKhan Academy@khanacademyKickstarter@kickstarterLean Startup Circle@LeanCircleMichaels, J—Fitness Guru Entrepreneur@JillianMichaelsNFIB@NFIBO’Leary, Kevin—Shark Tank Shark@kevinolearytvOsterwalder, Alex—Author@AlexOsterwalderRies, Eric—Lean Startup Advocate@ericriesStart-Ups Co@Start_Ups_CoSuster, Mark—Venture Capitalist@msusterSXSW@sxswTEDTalks@TEDTalksTechstars@techstarsThe Lean Startup@leanstartup3 Day Startup@3DayStartup30 Second MBA@30SecMBAShark Tank@ABCSharkTankStartup America@StartupAmericaStartup Chronicle@StartUpChronUnder30CEO@Under30CEOVenture Hacks@venturehacksVaynerchuk, Gary—Entrepreneur@GaryVeeVentureWell@venturewellWSJ@wsjWSJstartup@WSJstartupWired@WIREDWomen Entrepreneur@WomenEntYCombinator Startups@YCstartupsYoungEntrepreneur@YoungTrepYoungWorld Inventors@YWInventors
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 18 preview imagePart 3: Student and Instructor Resources342Entrepreneurship-Focused Scholarly JournalsJournalWeb Site AddressEntrepreneurship & Regional Developmenthttp://www.tandfonline.com/toc/TEPN20/current#.VJhzW4AGAEntrepreneurship Theory & Practicehttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-6520Frontiers of Entrepreneurship Researchhttp://www.babson.edu/Academics/centers/blank-center/bcerc/Pages/frontiers-of-entrepreneurship-research.aspxJournal of Business Venturinghttp://www.journals.elsevier.com/journal-of-business-venturing/Journal of Small Business Managementhttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-627XJournal of Small Business Strategyhttp://smallbusinessinstitute.biz/page-1259165?Small Business Economicshttp://www.springer.com/business+%26+management/business+for+professionals/journal/11187Strategic Entrepreneurship Journalhttp://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1932-443XThe Journal of Product InnovationManagementhttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-5885Venture Capital—An International Journalof Entrepreneurial Financehttp://www.tandfonline.com/toc/tvec20/current#.VJhyA4AGACompany InformationWeb SiteWeb Site AddressAnnual Report Servicewww.annualreportservice.comCEO Expresswww.ceoexpress.comBRINTwww.brint.comBusiness Wirewww.businesswire.comHoover’s Onlinewww.hoovers.comPR Newswirewww.prnewswire.comThomas Registerhttp://www.thomasnet.com/The Wall Street Journalwww.wsj.com
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 19 preview imageChapter 1: Introduction toEntrepreneurship1CHAPTER 1INTRODUCTION TOENTREPRENEURSHIPLEARNING OBJECTIVESAfter studying this chapter students should be ready to:1.Describe entrepreneurship, corporate entrepreneurship, and the characteristics ofentrepreneurial firms.2.Discuss three main reasons people decide to become entrepreneurs.3.Identify four main characteristics of successful entrepreneurs.4.Explain five common myths regarding entrepreneurship.5.Discuss the three types of start-up firms.6.Discuss the changing demographics of entrepreneurs in the United States.7.Discuss the positive effects of entrepreneurship and entrepreneurial firms oneconomies and societies.8.Explain the entrepreneurial process.9.Learn how understanding entrepreneurship and the entrepreneurial process canfacilitate your career success.CHAPTER OVERVIEWThis chapter (1) introduces the book, (2) provides an overview of the entrepreneurialprocess, and (3) introduces a conceptual model that shows how the entrepreneurialprocess typically unfolds. The model, which is shown at the top of the next page, depictsthe entrepreneurial process as a 10-step process, beginning with the decision to becomean entrepreneur. The chapters of the book follow the model. We hope that this approachprovides your students a nice visual way of understanding how the entrepreneurialprocess unfolds.The chapter focuses on why people become entrepreneurs, the characteristics ofsuccessful entrepreneurs, the changing demographics of entrepreneurs, and theimportance of entrepreneurship to the economy and society. The three boxed features,which appear in every chapter, are introduced. The chapter ends with a brief discussion ofeach of the major sections of the book.The chapter, like the rest of the book, is written in an upbeat yet realistic manner.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 20 preview imageChapter 1: Introduction toEntrepreneurship2Basic Model of the Entrepreneurial ProcessThe Model Parallels the Chapters in the BookCHAPTER OUTLINECHAPTER OUTLINEI.Introduction to EntrepreneurshipII.What Is Entrepreneurship and Why Is It Important?III.Why Do People Become Entrepreneurs?A.Be Their Own BossB.Pursue Their Own IdeasC.Pursue Financial RewardsIV.Characteristics of Successful EntrepreneursA.Passion for the BusinessB.Product/Customer FocusC.Tenacity Despite FailureD.Execution IntelligenceV.Common Myths About EntrepreneursA.Myth 1: Entrepreneurs Are Born, Not MadeB.Myth 2: Entrepreneurs Are GamblersC.Myth 3: Entrepreneurs Are Motivated Primarily by MoneyD.Myth 4: Entrepreneurs Should be Young and EnergeticE.Myth 5: Entrepreneurs Love the SpotlightVI.Types of Start-Up FirmsVII.Changing Demographics of EntrepreneursA.Women EntrepreneursB.Minority EntrepreneursC.Senior EntrepreneursD.Millennial EntrepreneursVIII.The Positive Effects of Entrepreneurship and Entrepreneurial Firms
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 21 preview imageChapter 1: Introduction toEntrepreneurship3A. Economic Impact of Entrepreneurial FirmsB. Entrepreneurial Firms’ Impact on SocietyC. Entrepreneurial Firms’ Impact on Larger FirmsIX.The Entrepreneurial ProcessA.Decision to Become an Entrepreneur (Chapter 1)B.Developing Successful Business Ideas (Chapters 2–6)C.Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10)D.Managing and Growing an Entrepreneurial Firm (Chapters 11–15)X.Developing Skills for your CareerCHAPTER NOTESI.Introduction to EntrepreneurshipThere is tremendous interest in entrepreneurship around the world.Although the highest rates of entrepreneurial start-up activity occur in low-income countries, where good jobs are not plentiful, the rates are alsoimpressive in high-income countries. According to the GEM Study, 1 out ofevery 8 ½ (11.9%) of American adults is actively engaged in starting abusiness or is the owner/manager of a business that is less than three-and-a-half years old.II.What Is Entrepreneurship and Why Is It Important?Entrepreneurship is defined as the process by which individuals pursueopportunities without regard to resources they currently control for thepurpose of exploiting future goods and services.We want to note here that established firms with an orientation toward actingentrepreneurially practice corporate entrepreneurship.All firms fall on a conceptual continuum that ranges from highly conservativeto highly entrepreneurial.III.Why Do People Become Entrepreneurs?A.Be Their Own Boss. Many entrepreneurs want to be their own boss becauseeither they have had a long-term ambition to own their own business or theyhave become frustrated working in traditional jobs.B.Pursue Their Own Ideas. Some people are naturally alert, and when theyrecognize ideas for new products or services, they have a desire to see thoseideas realized.C.Pursue Financial Rewards. People start their own firms to pursue financialrewards. This motivation, however, is typically secondary to the first two andoften fails to live up to its hype.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 22 preview imageChapter 1: Introduction toEntrepreneurship4IV.Characteristics of Successful EntrepreneursA.Passion for the Business. The number one characteristic shared by successfulentrepreneurs is passion for the business. This passion typically stems fromthe entrepreneur’s belief that the business will positively influence people’slives.B.Product/Customer Focus. An entrepreneur’s keen focus on products andcustomers typically stems from the fact that most entrepreneurs are, at heart,craftspeople.C.Tenacity Despite Failure. Because entrepreneurs are typically tryingsomething new, the failure rate associated with their efforts is naturally high.Developing a new business may require a certain degree of experimentationbefore a success is attained. Setbacks and failures inevitably occur during theprocess. The litmus test of entrepreneurs is their ability to persevere throughsetbacks and failures.D.Execution Intelligence. The ability to effectively execute a business ideameans developing a business model, putting together a new-venture team,raising money, managing finances, leading employees, and so on.V.Common Myths About EntrepreneursA.Myth 1: Entrepreneurs Are Born, Not Made. This myth is based on themistaken belief that some people are genetically predisposed to be anentrepreneur.B.Myth 2: Entrepreneurs Are Gamblers. Entrepreneurs are usually moderate risktakers, as are most people.C.Myth 3: Entrepreneurs Are Motivated Primarily by Money. It is naïve to thinkthat entrepreneurs don’t seek financial rewards.As discussed previously,however, money is rarely the primary reason entrepreneurs start new firms.D.Myth 4: Entrepreneurs Should Be Young and Energetic. Although it isimportant to be energetic, investors often site the strength of the entrepreneurs(in terms of business experience, skill, and talent) as their most importantcriterion in the decision to fund a new venture.E.Myth 5: Entrepreneurs Love the Spotlight. While some entrepreneurs areflamboyant, the vast majority of them do not seek or attract public attention.Typically those that are working on proprietary products or services avoidpublic notice.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 23 preview imageChapter 1: Introduction toEntrepreneurship5VI.Types of Start-Up FirmsA.Salary-Substitute Firms. Are small firms that afford their owner or owners asimilar level of income to what they would earn in a conventional job.1.Examples of salary-substitute firms are dry cleaners, convenience stores,restaurants, accounting firms, and hairstyling salons.B.Lifestyle Firms. Provide their owner or owners the opportunity to pursue aparticular lifestyle and earn a living while doing so.1.Examples of lifestyle firms include ski instructors, golf pros, and tourguides.C.Entrepreneurial Firms. Bring new products and services to market by creatingand seizing opportunities.1.Examples of entrepreneurial firms are Dropbox, Facebook, and Uber.VII.Changing Demographics of EntrepreneursA.Women Entrepreneurs. Although men are still more likely to start businessesthan women, the number of women-owned businesses is increasing.According to a study commissioned by American Express and OPEN, therewere 11.3 million women-owned businesses in the United States in 2016.B.Minority Entrepreneurs. There has been a substantial increase in minorityentrepreneurs in the United States. In 2012 (the most recent stats available),there were 8 million minority-owned firms.1.The average gross receipts for minority-owned firms was $58,119.C.Senior Entrepreneurs. The number of seniors (those 50 years of age and older)starting businesses is substantial and growing. In 2015, 5.4 percent of newbusinesses were started by people 62 years and older.D.Millennial Entrepreneurs. A desire to pursue an entrepreneurial career is highamong young people. According to a Bentley University survey, 66 percent ofmillennials have a desire to start their own businesses.VIII.The Positive Effects of Entrepreneurship and Entrepreneurial FirmsA.Economic Impact of Entrepreneurial Firms. For two reasons, entrepreneurialbehavior has a strong impact on an economy’s strength and stability.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 24 preview imageChapter 1: Introduction toEntrepreneurship61.Innovation. Innovation is the process of creating something new, which iscentral to the entrepreneurial process. Small innovative firms are 16 timesmore productive than larger innovative firms in terms of patents peremployee.2.Job creation. According to the SBA, small businesses create a substantialnumber of net new jobs in the United States. Firms with 500 or feweremployees created more than 7 million out of the 11 million new jobscreated during the recent economic recovery.B.Entrepreneurial Firms’ Impact on Society.The innovations of entrepreneurialfirms have a dramatic impact on society. Think of all the new products andservices that make our lives easier, enhance our productivity at work, improveour health, and entertain us. Many of these products and services wereconceived and brought to market by entrepreneurial firms.C.Entrepreneurial Firms’ Impact on Larger Firms. In addition to the impactentrepreneurial firms have on the economy and society, entrepreneurial firmshave a positive impact on the effectiveness of larger firms.1.For example, some entrepreneurial firms are original equipmentmanufacturers, producing parts that go into products that larger firmsmanufacture and sell.2.Thus, many exciting new products are not solely the result of the efforts oflarger companies with strong brand names. They were produced with thecutting-edge component parts or research development efforts provided byentrepreneurial firms.3.The evidence shows that many entrepreneurial firms have built their entirebusiness models around producing products and services that help largerfirms be more efficient or effective.IX.The Entrepreneurial ProcessFigure 1.3 in the book (and reproduced earlier in this review) models theentrepreneurial process. This process is the guide or framework we use todevelop this book’s contents.A.Decision to Become an Entrepreneur (Chapter 1). As discussed earlier, peoplebecome entrepreneurs to be their own boss, to pursue their own ideas, and torealize financial rewards.B.Developing Successful Business Ideas (Chapters 2–6). Many new businessesfail not because the entrepreneur didn’t work hard but because there was noreal opportunity to begin with.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 25 preview imageChapter 1: Introduction toEntrepreneurship71.Developing a successful business idea includes opportunity recognition,feasibility analysis, developing an effective business model, industry andcompetitor analysis, and writing a business plan.C.Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10). This is acritical stage in the entrepreneurial process.1.This section deals with preparing the proper ethical and legal foundation,assessing a new venture’s financial strength and viability, building a new-venture team, and getting financing or funding.D.Managing and Growing an Entrepreneurial Firm (Chapters 11–15). Giventoday’s competitive environment, all firms must be managed and growthproperly maintained to ensure their ongoing success. This is the final stage ofthe entrepreneurial process.1.This section deals with unique marketing issues, the importance ofintellectual property, preparing for and evaluating the challenges ofgrowth, strategies for growth, and franchising.X.Developing Skills for your CareerA.Whether you want to be an entrepreneur or not, the contents of this bookaddress a number of “employability” skills that are critical to have asuccessful career in organizations. Key among these skills are ethics andsocial responsibility, critical thinking, collaboration, and data literacy.BOXED FEATURES: QUESTIONS FOR CRITICAL THINKINGNote: Each boxed feature in the textbook is followed by four questions. The questionscan be used for individual or group assignments or can be used to stimulate classroomdiscussion. The following are suggested answers for the questions at the end of eachboxed feature.What Went Wrong?Prim: How a Lack of Passion and Resolve Can Kill a Business1.Why is passion such a critical part of entrepreneurial success? Prim’s founderswere apparently passionate about building a company but not the laundrybusiness specifically. In what ways is this combination problematic?Answer: The number one characteristic shared by successful entrepreneurs is apassion for their business. The passion typically stems from the entrepreneur’sbelief that the business will positively influence people’s lives.Prim’s foundermay have mistakenly developed a passion for starting a business rather than a
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 26 preview imageChapter 1: Introduction toEntrepreneurship8passion for the business they started.This is problematic because once the initialexcitement of starting the business was over (and the business startedexperiencing challenges), the founders were left with the day-to-day grind ofrunning thebusiness and may have found that they weren’t as interested in the(laundry) business as they originally thought theywouldbe.One way to checkwhether one’s passion is real is to work in the industry your firm will participatein (over an extended period of time, if possible) to see if you like it.Somefranchise organizations, for example, require prospective franchisees to work inone of the company’s franchise outlets for a period of time, just to ensure thatthey like the work before they become franchisees.As illustrated throughout the book, starting a business is a rewarding yetchallenging process.There will be many ups and downs.A person’s passion forthe business that he or she startsiswhat sustains one during the challengingperiods.2.How could Prim’s co-founders have better anticipated that laundry serviceswould eventually see Prim as siphoning off their own business and be reluctantto work with them?Answer:Students will vary in terms of their answer to this question.One thingPrim’s co-founders could have done prior to starting the business is complete athorough feasibility analysis.This topic is addressed in Chapter 3.By talking tolaundry services in advance, the founders may have gained an awareness thattheir business model wasnotviable.3.Rather than employ its own drivers to pick up and deliver laundry for itscustomers, Prim relied on the use of third-party delivery services.In what waysdo you think this approach could have limited Prim’s growth in other markets?Answer:Prim was not developing core competencies in the logistics of itsoperations.At its heart, Prim was a pick up and delivery service.It picked up itscustomers’laundry, took the laundry to a laundry service to have washed andfolded, and then returned the laundry to the customer.If Prim had developedunique capabilities in performing this task, it could have extended its pick up anddelivery service to other industries.Instead, Prim outsourced this service so itdeveloped no core competenciesin this area.4.San Francisco, the city in which Prim launched, has several innovative laundryservices.These services include LaundryLocker, where you drop your clothes ina public locker;Sfwash, a delivery service where you pay by the pound;andSudzee, which requires special lockable bags.Spend some time studyingLaundryLocker (https://laundrylocker.com), Sfwash (https://sfwash.com), andSudzee (http://sudzee.com).Select the service that you think has the mostpotential and explain the rationale for your selection.Compare the service toPrim’s approach.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 27 preview imageChapter 1: Introduction toEntrepreneurship9Answer:LaundryLocker’s customers place their laundry in a locker and thecustomersarenotified by text when the laundry is finished and returned to thelocker (within two business days).Sfwash picks up your laundry (at your homeor business) and returns it to the same address.The pickupand delivery timesare done within agreed upon windows of time.Sudzee offers two options.Itoffers home pickup and return, similar to Sfwash.It also offers a service wherecustomers can place their laundry in a large secure container in a Sudzee bag.Sudzee will notify the customer when the laundryis done.The laundry can beretrieved from the container via a securefour-digit code.Pricing seems to besimilar across the companies.Sudzee seems to be the best—capturing theadvantages of both Sfwash, which offers a pickup and delivery service, andLaundryLocker, which offers a dropoff and retrieval service as explained.It alsobeats out Prim, which offeredonlythe pickup and delivery service.Savvy Entrepreneurial FirmStart-Up Incubators and Accelerators: A Smart Way of Gaining Access to Mentors,Partners, Investors, and Other Critical Start-Up Resources1.If you were starting a new venture, do you think you would benefit fromparticipating in a business incubator or accelerator program? If so, what do youthink the primary benefits would be?Answer: Most students will say they would benefit from participating in abusiness incubator or accelerator program. The obvious benefits are gainingaccess to mentors and advisors. Start-up incubators and accelerators are alsofertile places for entrepreneurs to meet potential co-founders, business partners,and equity investors.2.Find an example of a start-up incubator or accelerator at the college or universityyou are attending or in the town you live in or a nearby city. Describe theprogram. Which one of the programs mentioned in this feature does it resemblethe most?Answer: Answers will vary for this question. Many university entrepreneurshipprograms support a start-up incubator or accelerator, as do many towns andcities. The incubators and accelerators will vary in terms of the programs andterms they offer, but the benefits are similar across locations.3.If you have a promising business idea, what can you do whileyou’rein collegeto improve your chances of being admitted to a prestigious start-up incubator oraccelerator program when you graduate?Answer: Answers will vary to this question. Most students will say thatinvolvement in the following college activities will boost their chances of beingaccepted into an incubator:
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 28 preview imageChapter 1: Introduction toEntrepreneurship10Coursework in entrepreneurship.Participation in entrepreneurship-related activities, such as pitchcompetitions and business plan competitions, and winning awards inthose activities.Participating in a college or university-sponsored incubator.Networking (to the extent that the student could ask several high-profileentrepreneurs or investors to write letters of support).Make good headway on a business idea, so the student is partway downthe runway prior to applyingfor admittance to the incubator.4.Make a list of the types ofmentorsthataparticipant in astart-upincubator oraccelerator programmight encounter.Answer: There are a number of partnership opportunities that are likely toemerge from participating in an accelerator program. Theyinclude:Identifying a potential co-founder for a business.Identifying potential channel partners.Identifying potential investors.Identifyingpotential advisory board members and other mentors andadvisors.Partnering for SuccessPartnering with College Students via Campus Ambassador and Campus Rep Programs1.As part of your college experience, do you think you would benefit fromparticipating in a campus ambassador or campus rep program? Why or why not?Answer: Most students will say they would benefit from participating in acampus ambassador or campus rep program. These are more like paidinternships and so the obvious benefits are gaining access to prospectiveemployers and gaining experience at the same time. In addition, such positionsalso help to defray living costs.2.In what ways would participating in a campus ambassador or campus repprogram help you prepare to own your own business someday?Answer: The main way is that a campus ambassador or a campus rep becomes anevangelist for the product.This helps when marketing the product of one’s ownbusiness. It also helps in creating a network which would be useful in helping astart-up succeed.3.Why do you think companies such as Apple, Flex Watches, and Her CampusMedia sponsor campus ambassador or campus rep programs? How do thecompanies benefit?
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 29 preview imageChapter 1: Introduction toEntrepreneurship11Answer:The companies benefit because they get low cost grassroots marketing.Also, when a company’s target market is young people, this allows for peer-to-peer selling. Finally, it helps these companies in their recruitment process.4.What types of start-ups would benefit the most from starting campus ambassadorprograms?Answer:It is likely that such programs help companies that sell a product or aservice to consumers and not businesses. In addition, if the target demographicis young people, these programs help in grassroots marketing.REVIEW QUESTIONS1-1.Do you anticipate that entrepreneurship will continue spreading throughout theworld, or do you think its appeal will subside over time?Answer: All indicators point to entrepreneurship continuing to spread throughoutthe world. The primary reasons are: (1) the downsizing of large firms, whichhave placed a large number of people off the job market that would rather starttheir own firm than work for another large firm; (2) the push for improvedefficiency and effectiveness on the part of firms and individuals, which hasprovided entrepreneurs the opportunity to meet needs; (3) the rapid pace ofchange that is taking place worldwide, which provides entrepreneurs additionalopportunities to meet needs; and (4) the increasing recognition thatentrepreneurship is the engine that fuels economic growth and prosperityworldwide. Most students will argue that there is no reason to think the appeal ofentrepreneurship will subside over time. The need to solve problems and meetunmet needs is universal worldwide.1-2.What key insights does the GEM study provide us about entrepreneurship?Answer: The key insight provided by the GEM study is that entrepreneurialactivity is taking place across the world. In addition, although the highest rates ofentrepreneurial start-up activities occur in low-income countries, where goodjobs are not as plentiful, the rates are also impressive in high-income countriessuch as France, United Kingdom, and the United States. The GEM study alsoidentifies whether its respondents are starting a new business to take advantageof an attractive opportunity or because of necessity to earn an income. Themajority of people in high-income countries are drawn to entrepreneurship totake advantage of attractive opportunities. The reverse is true of people in low-income countries, who tend to be drawn to entrepreneurship primarily because ofnecessity.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 30 preview imageChapter 1: Introduction toEntrepreneurship121-3.What does evidence show us about the rate of failure associated withentrepreneurial ventures?Answer: One criticism of entrepreneurship, which is often repeated in the press,is that the majority of new businesses fail.It simply isn’t true.The often usedstatistic that 9 out of 10 businesses fail in their first few years is an exaggeration.According to the Bureau of Labor Statistics, over half the businesses started arestill in existence five years later.1-4.What is entrepreneurship?Answer:The standard definition for entrepreneurship is that it’s “theprocess bywhich individuals pursue opportunities without regard to resources theycurrently control.”It can occur at the individual level, the team or group level, orat the corporate level. There are other definitions of entrepreneurship. FredWilson, a venture capitalist, definesentrepreneurship as “the art of turning anidea into a business.”Both definitions focus on behaviors. In general,entrepreneurship is associated with the task of identifying opportunities andputting useful ideas into practice.1-5.In what ways is an entrepreneur who just launched a restaurant different fromsomeone who just took a job as the general manager of a restaurant owned by amajor restaurant chain?Answer: Entrepreneurial firms, which are the focus of this book, bring newproducts and services to market by seizing opportunities. The person who justlaunched a restaurant is bringing a new product or service to market, and isassuming the risk associated with doing that. The person who just took a job asthe general manager of a restaurant isn’t bringing something new to market.Althoughthe person is assuming employment risk, he/she isn’t assuming the riskof owning a business.1-6.What are the three main attributes of firms that pursue high levels of corporateentrepreneurship?Answer: Entrepreneurial firms are typically proactive, innovative, and not averseto taking risks.1-7.What are the three primary reasons people become entrepreneurs?Answer: The three primary reasons that people become entrepreneurs and starttheir own firms are to (1) be their own boss, (2) pursue their own ideas, and (3)realize financial rewards.
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Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual - Page 31 preview imageChapter 1: Introduction toEntrepreneurship131-8.Of the three primary reasons people become entrepreneurs, which one is givenmost commonly and why?Answer: Be their own boss. The reason this is the most common motivation forbecoming an entrepreneur is either because some people have a long-standingambition to be their own boss or because they become frustrated working intraditional jobs. For many people, a traditional job may be too confining andthey yearn for the freedom that entrepreneurship brings.1-9.Why is passion such an important characteristic of successful entrepreneurs?Answer: The passion that an entrepreneur feels for his or her business typicallystems from a belief that the business will positively influence people’s lives.It isimportant that this passion exist because the process of starting and building anew firm is demanding.1-10.What is it about passion that makes it particularly compatible with theentrepreneurial process?Answer: Passion is particularly important because, although rewarding, theprocess of starting a firm or building a business is demanding. Absent passion,the demands would outweigh the potential rewards for people who are notpassionate about what they’re doing.1-11.Why is product/customer focus an important characteristic of successfulentrepreneurs?Answer: Although all parts of the entrepreneurial process are important,ultimately if a new business does not have a successful product that is directedtoward a receptive market the business will fail. A product/market focus alsoinvolves the diligence to spot product opportunities and to see them through tocompletion.1-12.What is it about“tenacity”that makes it such an important characteristic forentrepreneurs?Answer: Because entrepreneurs are typically trying something new, thepossibility of failure exists. The litmus test for entrepreneurs is the tenacity thatthey have to persevere through setbacks and failures.1-13.What are the five common myths of entrepreneurship?Answer: The five common myths of entrepreneurship are as follows:
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