Chapter 6 exam 2 Flashcards
Describe several types of entrepreneurs
Classical Entrepreneurs - accept the risk that come with starting their own companies based on innovative ideas. Include micropreneurs who start small and stay small. growth oriented preneurs want there business to grow into major corporations.
Multipreneurs - entrepreneurs who start a series of companies, they thrive on the challenge of building a business and watching it grow
Intrapreneurs - don’t own there own company but take there innovative ideas, visions and risk taking into a large corporation.
What differentiates an entrepreneur from a small business owner
Entrepreneurs - are innovators who start companies to pursue their idea for a new good or service, are sometimes visionaries who spot trends, but often they create businesses that turn out to be completely different then from what they intended as they adapt to the changing environment. Have big ideas, most likely to take risk, think to the future.
small business owner - are managers, or people with technical expertise, who started or bought a business and made a conscious effort to stay small. they have great ideas, like to know what is coming next and make calculated decisions, also manage day to day
What are some of the major factors that motivates entrepreneurs to start businesses
challenge of building a business desire to control their own destiny financial independence frustration working with someone else feeling of personal satisfaction
Why are small businesses becoming popular
they are becoming popular because
independence and a better lifestyle personal satisfaction from work rapidly changing technology outsourcing major corporate restructuring and downsizing
Discuss the major advantages and disadvantages of small businesses
advantages
greater flexibility
react more quickly
innovations can be brought to the market faster
more efficient operating
disadvantages
difficulty obtaining adequate financing
in adequate skills can lead to problems growing the company
more expensive to comply with regulations
How does a new business owners role change over time
over time the business grows and the owner will have to assign the at to day jobs to employees
What are the benefits to small companies
uncomplicated company structure allows small businesses to react more quickly to changing market force. product innovations can be developed and brought to market faster, using fewer financial resources and personnel then would be needed in a larger company
describe the personality traits and other skills characteristic of successful entrepreneurs
ambitious - high need for achievement and are competitive
self confident - understand challenges of starting a business but are decisive and have faith in their ability to resolve problems
risk taking - not averse to risk
visionary - ability to create new goods and services based on trends in the market place
creative - compete with larger companies
energetic - need due to long hours
passionate - they love their work
committed - make personal sacrifice to achieve their goal because they are committed to their companies
What are the benefits to small companies of doing business internationally and what steps can small businesses take to explore their options
Canadian goods become less expensive and there are greater opportunities to sell else where do to growing world markets.
