Flashcards on Stages of an Entrepreneurial Venture
Stages of an Entrepreneurial Venture: A Student's Guide
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Entrepreneurial Venture Development
14 cards
Card 1
Question: What is Stage 1 (Incubation) in entrepreneurial venture development?
Answer: The pre-birth stage where the entrepreneur has identified an opportunity, assessed feasibility and viability, and prepares to establish the business.
Card 2
Question: What problems might an entrepreneur face in the incubation stage and what solutions may be required?
Answer: Problems: lack of clarity on feasibility, limited resources, poor planning, and risk assessment. Solutions: thorough feasibility studies, business pla
Card 3
Question: What happens during Stage 2 (Start-up) of a business?
Answer: Production and trading commence; the business begins operations and often experiences growing pains like slow break-even and high marketing capital ne
Card 4
Question: What problems are common in the start-up stage and how can they be solved?
Answer: Problems: not reaching break-even fast enough, large capital required for marketing. Solutions: control costs, improve pricing or value proposition, p
Card 5
Question: What characterizes Stage 3 (Breakthrough) in business development?
Answer: A period of accelerated growth where maintaining correct levels of factors of production is critical; managing rapid expansion is challenging.
Card 6
Question: What types of problems can occur during the breakthrough stage and how can they be solved?
Answer: Problems: overextension, supply shortages, quality control, managerial strain, cash flow issues. Solutions: scale operations carefully, strengthen sup
Card 7
Question: What defines Stage 4 (Maturity) of a business?
Answer: The business is established with a loyal customer base, captured market share, established distribution channels, and returns on initial investments.
Card 8
Question: What problems might an entrepreneur face in the maturity stage and how could they be solved?
Answer: Problems: market saturation, competition, stagnating growth. Solutions: innovate products/services, expand market share through marketing, diversify d
Card 9
Question: What is Stage 5 (Decline / Rejuvenation) in the life cycle of a business?
Answer: A stage where the business declines unless it rejuvenates; the entrepreneur must choose to close or attempt revitalization through innovation and stra
Card 10
Question: What problems occur in decline/rejuvenation and what solutions are possible?
Answer: Problems: loss of competitive advantage, falling sales, outdated products. Solutions: redesign products/services, relocate or change premises, expand