Chapter 7: Entrepreneurship and Starting a Small Business

Question 1

Entrepreneurship

Answer 1

Accepting the challenge of starting and running a business

Question 2

Entrepreneurial is different from small businesses: 4ways

Answer 2

Amount of wealth creation
Speed of wealth creation
Risk
Innovation

Question 3

Why people take the entrepreneur jump

Answer 3

Opportunity 
New idea, process, product
Profit 
Challenge 
Independence 
Family pattern

Question 4

What it takes to be an entrepreneur

Answer 4

1) self directed
2) self nurturing
3) action orientated
4) highly energetic
5) tolerant of uncertainty
6) able to learn quickly

Question 5

Questions to ask yourself

Answer 5

What do I want but can’t find
What product or service would improve my life
What really irritates me and what would help

Question 6

You have a good business idea if….

Answer 6

It fills customers needs
You have the skills and resources to start a business
You can sell the prouduct to customers and still make profit
Get the product out before the window closes
You can keep the business going

Question 7

Small and medium sized enterprises (SME)

Answer 7

Businesses with less than 500 employees

Question 8

Reasons for female entrepreneur

Answer 8

Financial need 
Lack of promotion opportunity 
Women returning to workforce 
Family and personal responsibility 
Public awareness of women in business 
Part time occupations 
Higher rate of success for women

Question 9

Entrepreneurial team

Answer 9

A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market new product

Question 10

Micro enterprise

Answer 10

Small business with 1-4 employees

Question 11

Micropreneur

Answer 11

Small business with less than 5 people, handle the stress of starting a business, maintain a personal life

Question 12

Reason for home based business

Answer 12

Computer technology
Corporate downsizing
Change in social attitude

Question 13

Intrapreneurs

Answer 13

Creative people who work as entrepreneurs within corporations

Question 14

Business incubators

Answer 14

Centres that provide space, services, advice, and support to assist new and growing businesses

Question 15

Small business

Answer 15

A business that is independently owned and operated, is not dominant in its field, and meets certain standards of size in terms of employees or annual revenue

Less than 100 workers

Question 16

Five functions of a small business

Answer 16

1) planning your business
2) financing your business
3) knowing your customers
4) managing your employees
5) keeping records

Question 17

Business plan

Answer 17

Detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and resources

Question 18

Angel investors

Answer 18

Private individuals, often successful business people, who invest their own money into a potentially rewarding private company

Shark tank

Question 19

Venture capitalist

Answer 19

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses

Question 20

Crowdfunding

Answer 20

Raising funds through the collection of small contributions from the general public (GOFUNDME)

Question 21

Size of small business

Answer 21

1-99 people

Question 22

Size of a large business

Answer 22

500+ people

Question 23

Size of medium business

Answer 23

100-499

Question 24

Market

Answer 24

People with unsatisfied wants and needs who have both the resources and the willingness to buy