Entrepreneurship
Terms
undefined, object
copy deck
- Creative Destructionism
- When something new, destroys something old
- Entreprenuer
- One who shifts economic resources of out an area of lower productivity into an area of higher productivity
- External Locus of Control
- Belief that powerful others, fate or chance primarily determine events, and control their decisions and their life
- Internal Locus of Control
- Belief that events result primarily from their own behaviour and actions, and tend to influence other people
- Happiness Deficient
- Unmet needs
- 10x shift
- in order to achieve faster adoption,a product must be 10x better, faster, smaller, cheaper, profitable. Example: email vs snail mail, ebay vs garage sale
- Opportunity
- favourable set of circumstances that create need for product or service
- Opportunity has 4 essential Qualities
- Attractive Durable Timely Creates/adds value for buyer/user
- Opportunity - Attractive
- Risk vs Reward - attractive to investors, customers
- Opportunity - Durable
- last long enough to be able to make money Example: prepaid pones
- Opportunity - creates/adds value
- has to be important to the buyer - or else they wont buy it; the more value, the more market demand Example: taking a plane adds value because it takes you there faster
- Adversity Quotient
- When you pick yourself up after obstacles/failure
- Feedback loop
- making suboptimal to optimal by listening to negative and positive feedback
- The Grameen Bank
- Suboptimal - couldnt get loan from banks Solution - support by giving money to them (microlending) 10x better - woman could take out money Result - successful business
- Survivorship Bias
- you always hear about successful ones, not the ones that fail People think that all entrepreneurs are successful
- CAGR
- Compounded Annual Growth Rate should be higher than 25% The rising tide floats all boats - If the market is demanding something, everyone in that industry will succeed
- Wilfull Blindness
- Entrepreneur thinks he's the only one that is correct
- The Talent Triangle
- Business Acumen Domain Knowledge Operational Experience
- Business Acumen
- has the skill, knowledge and experience to make the key business decisions. Example: CEO, CFO
- Operational Experience
- focused on infrastructure and logistics make decisions that relate to how the venture will implement and execute its business plan. COO, CTO
- Domain Knowledge
- must understand the industry’s key value drivers VP of Sales