Exam 3: The Entrepreneurial Process

Fast-growth firms should strive to create high impact,new product and service improvements with development expenditures that account for no more than approximately ________ percent of revenues.

By focusing on the needs of their customers,large companies leave themselves vulnerable to attack from startups.

The entrepreneurial process starts with the:

The Threshold Concept proposes that the odds of success change as a venture reaches a critical mass of over $8 million in sales and 50 employees.

There is often a direct correlation between creativity and innovation and the level of resources available at the start of a venture.

Fast-growth firms are careful not to link a defined exit strategy in the business plan with what the lead entrepreneur envisions as his or her long-term objectives.

A successful start-up venture,in addition to the strong leadership from the main entrepreneur,almost always involves building a team with ________.

As depicted in the Timmons Model,the entrepreneurial process can be appreciated as a constant balancing act,requiring continual assessment,revised strategies and tactics,and an ________ approach.

While government data,research,and business mortality statisticians may not agree on the precise failure and survival figures for new businesses,they do agree that moderate success is the rule,not the exception with new ventures.

The most effective entrepreneurial leaders of fast-growth companies practice top-down management and administration.

Most entrepreneurs launching businesses,particularly the first time,run out of what quicker than they bring in customers and profitable sales?

Failure is part of the dynamics of innovation and economic renewal.

Private investors have less stringent investment criteria than venture capitalists and are therefore an easier sell.

To achieve market penetration,fast-growth firms must initially deliver product and service benefits at below-market prices.

"Durability" refers to the market advantage a company can enjoy by developing proprietary barriers to entry.

Discuss the potential advantages and disadvantages of lifestyle ventures.

Bootstrapping can create significant competitive advantages.