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HULT International Business School
Principles of Entrepreneurship (ENT200) - Midterm Exam Study Guide
Note - For the semester with D
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Entrepreneurship is about ​Economy Growth​, ​the engine of growth in an economy (employment > consumption
> tax space > growth economy), ​New industry formation​, which can lead to the establishment of new industries
through the exploitation of technology, market trends, and overall consumer behavior
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​ The ​analysis of resources ​include:

- ​human​: intellectual, property, IT
- ​capital​: infrastructure, money, assets, technology
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Fail fast is a philosophy that values extensive testing and incremental development to determine whether an idea
has value
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Fail fast is often associated with the lean startup methodology
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The concept of failing fast is also
associated with differences between the waterfall and agile approaches to software development
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In contrast, a company that embraces the fail
fast philosophy develops their product or service incrementally, continually testing customer satisfaction to make
sure the product or service meets customer needs before investing more time and money
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Failing fast seeks to take the stigma out of the word "failure" by emphasizing that the knowledge gained
from a failed attempt actually increases the probability of an eventual success
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Funding options: never use your own capital in the pursuit of opportunities ​→ ​4F = Founder’s, Family, Friends,
Fools
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Obtaining seed

capital is the first of four funding stages required for a startup to become an established business
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It
generally covers only the first essentials such as a business plan and initial operating expenses
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Neither is inclined to invest large amounts of money in a new idea that exists only on paper unless it comes from a
successful serial entrepreneur
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They often enjoy a hands-on role in helping develop a company from scratch
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The assets of the company being acquired are often used as collateral for
the loans, along with the assets of the acquiring company
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Lean Startup Methodology: The lean startup is a method used to found a new company or introduce a new
product on behalf of an existing company
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As opposed to developing a product and then hoping that demand will emerge
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The process of developing a product or company based on the expressed desires of the market
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Uses validated learning, which is a process by which companies assess consumer interest
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Focuses heavily on customer related information such as customer churn rate, lifetime customer
value, and product popularity
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Experimentation is favored more than adherence to a rigid plan
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Involves the release of small form or early concept products in order to assess the customer
reaction to the product
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6 ∑ Methodology: Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc
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Six Sigma emphasizes cycle-time
improvement while at the same time reducing manufacturing defects to a level of no more than 3
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In other words, the system is a method to work faster with fewer mistakes
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Because only 3
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ASSIGNMENT FOR THE NEXT CLASS - ANSWERS
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identify and discuss the fundamental principles behind the Lean Start-up methodology
The Author States: “ Startup success can be engineered by following the process, which means it can
be learned, which means it can be taught
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The Lean Startup methodology is all about:
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get a desired product to the hands of the customer faster: always having a dynamic business
plan
it favors experimentation over elaborate planning, customer feedback over intuition, and
iterative design over traditional “big design up front” development
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, etc
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Briefly provide your understanding of a market opportunity analysis
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The key factors to conduct an effective market opportunity analysis are:
(1) Research your customers and competition (Porter 5 Forces)
(2) Get a high Level view of the market (inner statistics, ad hoc researches)

- ​What is the market size?
- ​How quickly is the market expanding or contracting?
- ​How many buyers are there?
- ​What are the barriers to entry?
- ​What is the bargaining power of suppliers?
- ​What is the intensity of the competition?
- ​Is there a threat of new entrants or substitute products or services?

(3) Explore adjacent opportunities (look for what the competition, similar start ups are pitching +
BCG matrix )
(4) Understand the business environment factors (PESTEL)

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