Chapter One

Question 1

Small businesses employ over ____ of employees in the private sector

Answer 1

50%

Question 2

Entrepreneurs

Answer 2

A person who relentlessly pursues an opportunity, in either a new or an existing business, to create value while assuming both the risk and the reward for his or her efforts

Question 3

Criteria for defining small businesses

Answer 3

• small size relative to larger competitors
• fewer than 100 employees
• localized business operations
• financing supplied by one person or small group
• has the potential to become more than a “one person show”

Question 4

Entrepreneurial opportunities

Answer 4

Economically attractive and timely opportunity that creates values for interested buyers or end users.

Question 5

Reluctant entrepreneurs

Answer 5

Person who becomes an entrepreneur as a result of some severe hardship.

Question 6

Refugee

Answer 6

A person who becomes an entrepreneur to flee and uncomfortable situation.

Question 7

Founder

Answer 7

“Pure entrepreneur”. Person who brings a new firm to existence

Question 8

Administrative entrepreneur

Answer 8

An entrepreneur who oversees the operations of an on going business

Question 9

Franchisee

Answer 9

An entrepreneur whose power is limited by the contractual relationship with a franchising organization

Question 10

Entrepreneurial team

Answer 10

Two or more people working together as entrepreneurs

Question 11

High-potential venture (gazelle)

Answer 11

A small firm that has great prospects for growth

Question 12

Attractive small firm

Answer 12

A small firm that Provides substantial profits to its owner

Question 13

Micro business

Answer 13

A small firm that Provides minimal profits to its owner

Question 14

Lifestyle business

Answer 14

A micro business that Permits the owner a comfortable or desired pattern of living.

Question 15

Artisan entrepreneur

Answer 15

Person with primarily technical skills and little business knowledge who starts a business

Question 16

Opportunistic entrepreneur

Answer 16

Person with both sophisticated managerial skills and technical knowledge who starts a business

Question 17

40% of all new businesses are now majority __________

Answer 17

Female owned

Question 18

Problems facing female entrepreneurs

Answer 18

• discrimination
• lack of access to credit
• lack of networking
• try to balance work and family life

Question 19

Millennial entrepreneurs

Answer 19

• have no fear of technology
• idealistic and optimistic
• more collaborative
• build elements of community in the business
• start companies while studying entrepreneurship
• fail fast, learn a lot and keep going

Question 20

Characteristics of strong entrepreneurs

Answer 20

• strong commitment to the business
• strong internal locus of control
• moderate risk takers

Question 21

Small businesses comprise ______ of all firms with employees

Answer 21

99.7%

Question 22

Mentor

Answer 22

A knowledgeable person who can offer guidance from their experience in a given field

Question 23

Founders as managers

Answer 23

Not always good organizational members

Question 24

Resource constraints

Answer 24

Small bank accounts and a limited staff

Question 25

Professional level management

Answer 25

Develop as much professionalism as possible while still retaining the entrepreneurial spirit of the enterprise

Question 26

Micro loans

Answer 26

Very small loans, often provided to entrepreneurs in developing countries

Question 27

Bootstrapping

Answer 27

Doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them

Question 28

Paradigm shift

Answer 28

A change in how we fundamentally see a situation

Question 29

Technician personality

Answer 29

A personality that focuses on an already developed technical skill, wants to be left alone to get the job done and is primarily concerned about the present

Question 30

Manager personality

Answer 30

A personality that is pragmatic and likes order and planning operations

Question 31

Entrepreneur personality

Answer 31

A personality that focuses on the business as a whole and providing results for the customer

Question 32

Entrepreneurial legacy

Answer 32

Material assets and intangible qualities passed on to both heirs and society