New Venture Creation Entrepreneurship for the 21st Century 10th Edition by Spinelli - Test Bank

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It is the entrepreneur and the management team which drive the opportunity, not the other way around. Hence it is crucially important that the people fit the opportunity in terms of experience, personality, ambitions and so on. Opportunities are simply that until a team of people transforms opportunities into reality.

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By thinking bigger there is a higher chance that an entrepreneur will start a high potential venture, whereas classic small business owners think atomistically, waiting to accumulate what is needed or not knowing where to go next or being limited by the type of opportunity they decide to take.

There is nothing straightforward about starting and succeeding with high potential opportunities. Often because it is a new idea which is leading to a new opportunity there may be problems in ‘selling’ the idea; the market may not be ready for the idea; there may not be sufficient funds to develop the idea and subsequent opportunity into a business; what might seem like a straightforward opportunity can be fraught with a multitude of problems.

A work of art is constructed using a set of techniques, but it is the way in which the techniques are used and applied that differentiates the artist from the ordinary. Artists have a different way of viewing the world and seeing possibilities and in some ways this is what high potential venture entrepreneurs are: artists who see the world differently to most of us.

Unless the opportunity is a good fit with all the various critical elements to the entrepreneurial process and the risk and reward has been appropriately balanced, there is a high chance that a high potential venture will fail.

One of the most important aspects of realising high potential ventures is the appreciation that they will exist in a dynamic context. This means that the context is constantly fluid and there are changes taking place as the result of such dynamism. It captures the extremely ever changing, ever evolving context with which a high potential entrepreneur needs to work.

The concepts enable potential entrepreneurs to visualise how the process works in building an opportunity, getting sufficient investment to get the opportunity happening, and finally harvesting the results.

This is where the importance of understanding the dynamic nature of the context of entrepreneurial opportunities becomes important – due to the dynamic, ever-changing nature of the context within which high potential ideas are turned into opportunity, the time has to be such that as soon as a window of opportunity presents itself, the entrepreneur is in a position to immediately take advantage of it, as such a window of opportunity may not ever recur. Page 154

Social entrepreneurs are primarily concerned with improving the human condition without necessarily profiting from it to the same extent a more traditional entrepreneur might. And this tends to be the main difference between the two. While all types of entrepreneurship do eventually benefit the community (among others) social entrepreneurs start with the community as the primary beneficiary.

Large firms are often too cumbersome and slow to allow for the necessary ‘space’ innovators might need. They are often unable to react with sufficient speed and can be too embedded in their existing products and processes to be bothered with encouraging the processes of innovation.

The marketplace is so highly competitive today that many firms secure a competitive advantage by placing customer service high on its list of priorities; not only placing it there in mission statements and so on but ensuring that it becomes a central part of the culture of the organisation. There are rare companies that can afford to ignore customer service (e.g. the banks and telcos in Australia due to a variety of reasons) but generally great customer service can be a necessity which keeps a firm a step ahead of competitors.

A good idea is simply the first of many steps in the process of converting the creativity of an entrepreneur into an opportunity. Many people can have good, even great, ideas; it is being able to actually do something with these ideas that matter at an entrepreneurial level.

Being able to recognise an idea and then being able to shape that idea into an opportunity is one of the key features of being an entrepreneur. There can be lots of good ideas, but it is the taking of an idea and turning it into an opportunity which differentiates the entrepreneur from the ordinary.

Unless the specified conditions are met, the business cannot be by definition a higher potential business. If a business meets all these conditions then there is a very high chance that it will be able to be developed into a higher potential business; but this is not an automatic process, nor does it last indefinitely. It is something that has to be constantly worked at, as other entrepreneurs/established businesses will want to make that market share their own.

What separates the different ways of obtaining competitive intelligence is the ethics of the individual/company that is seeking the information. None of the above methods are illegal, but some are ethical and others not. The entrepreneur gets to chose whether to act in ethical or unethical ways.

equity

premium

$50 million

narrow focus

Pattern recognition

left

window of opportunity

barrier to entry

three

capital markets

low-cost

Risk and reward

Speed and agility

30 per cent

10 per cent

20 per cent

One year or less

Opportunities create or add significant value to a customer or end-user. They do so by solving a significant problem, removing a serious pain-point, or meeting a significant want or need–for which someone is willing to pay a premium. Superior opportunities have robust market, margin, and moneymaking characteristics that will allow the entrepreneur to estimate and communicate sustainable value to potential stakeholders. They are a good fit with the founder(s) and the management team at the time and in the marketplace–and the exhibit an attractive risk-reward balance.

The question is designed to get students to think about the role that ethics play in the entrepreneurial process. The collection of competitive (or potential) information can range from the legal (material in the public domain) through to illegal (bribing people) industrial espionage (which may or may not be illegal). The ultimate aim of the question is to get students to think about their own ethical positions in relation to actions and to what extent the ends justifies the means and whether the means are an end in themselves.