Entrepreneurship Concept

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Questions and Answers

What is the primary motivation for an entrepreneur to take on financial risks?

To gain recognition and fame

To show off their technical skills

To create and innovate to build something of recognized value (correct)

To impress their friends and family

What is the role of an intrapreneur in an organization?

To focus on marketing and advertising

To create a new line of business within a large organization (correct)

To start a new business from scratch

To manage a small team of employees

What percentage of the Egyptian economy is based on small firms?

70%

90% (correct)

80%

50%

What is the definition of an entrepreneur according to the Oxford dictionary?

Someone who sets up a business or businesses, taking on financial risks in the hope of profit Signup and view all the answers

What is the characteristic of an entrepreneur according to Schumpeter?

Someone who exploits market opportunity through technical and/or organizational innovation Signup and view all the answers

What is the significance of small firms in the US economy?

They are responsible for half of the private work force Signup and view all the answers

What is the primary goal of an entrepreneur?

To utilize available opportunities Signup and view all the answers

What is a characteristic of an entrepreneur's decision making process?

Making own decisions Signup and view all the answers

What is a key aspect of the entrepreneurial process?

Assuming major risks Signup and view all the answers

What motivates entrepreneurs, according to the text?

Utilizing available opportunities Signup and view all the answers

What is a key difference between entrepreneurs and businessmen?

Goal orientation Signup and view all the answers

What is the definition of entrepreneurship, according to Stevenson and Jarillo?

The process of pursuing opportunities without regard to resources they currently control Signup and view all the answers

What is a characteristic of the entrepreneurial process, according to Robert C. Ronstadt?

Infusing value by securing and allocating necessary skills and resources Signup and view all the answers

What is the outcome of the entrepreneurial process?

Incremental wealth Signup and view all the answers

What is a major contribution of an entrepreneur to the economy?

Generating employment and providing income to employees Signup and view all the answers

What is a key characteristic of an emerging technology?

Radical novelty and uncertainty Signup and view all the answers

What is the primary motivation of an entrepreneur in international trade?

To higher profits by selling products abroad Signup and view all the answers

What is the definition of an entrepreneur?

An individual who undertakes the creation, organization, and ownership of a business Signup and view all the answers

What is the entrepreneurial process?

The process of recognizing an opportunity, testing it in the market, and gathering resources Signup and view all the answers

What is a common fear of entrepreneurs?

Fear of lack of technical knowledge Signup and view all the answers

What is a characteristic of entrepreneurial firms?

Entrepreneurial and innovative Signup and view all the answers

What is a contribution of entrepreneurship to the country's economy?

It increases the gross national product Signup and view all the answers

Study Notes

Definition of Entrepreneur

An entrepreneur is someone who sets up a business or businesses, taking on financial risks in the hope of profit (Oxford dictionaries definition)
Derived from the French word meaning "to undertake or to try" (Richard Cantillon, 1775)
Exploits market opportunities through technical and/or organizational innovation (Schumpeter, 1965)
Creates and innovates to build something of recognized value around perceived opportunities (Bolton and Thompson, 2000)
Organizes, manages, and assumes the risks of a business (Kuratko and Hodgetts, 2001)

Characteristics of Entrepreneurs vs. Businessmen

Entrepreneurs: unlimited time, flexible nature of job, makes own decisions, moderate risk-taker, goal is to maximize self-potential
Businessmen: limited time, rigid nature of job, follows decision made by others, low risk-taker, goal is solely for profit maximization