Entrepreneurship vs Small Business Activities

Questions and Answers

What is the primary motive for opening a business in entrepreneurship?

To gain financial independence

To earn a consistent salary

To become successful based on entrepreneurial principles (correct)

To create a stable source of livelihood

How does an entrepreneur generally perceive risk in business?

As inevitable but manageable with proper planning

As something to be avoided at all costs

As an opportunity for growth and challenge (correct)

As primarily detrimental to business operations

What distinguishes an entrepreneur's reaction to changes in the business environment compared to that of an ordinary small business owner?

Entrepreneurs ignore changes while small business owners embrace them

Entrepreneurs view changes as opportunities, while small business owners remain passive (correct)

Entrepreneurs resist change, while small business owners adapt quickly

Entrepreneurs react negatively while small business owners remain static

In terms of competition, how does the viewpoint of an entrepreneur differ from that of an ordinary small business owner?

Entrepreneurs see competition as a sign of health in the economy, while small business owners fear it Signup and view all the answers

How does the horizon of business operation differ between entrepreneurs and ordinary small business owners?

Entrepreneurs plan for long-term growth while small business owners focus on immediate profits Signup and view all the answers

How does an owner of an ordinary small business typically perceive competition?

As an unhealthy element to avoid Signup and view all the answers

What distinguishes the vision of an entrepreneur from that of an ordinary small business owner?

Entrepreneurs outline short, medium, and long-term plans Signup and view all the answers

In terms of funding sources, how does an ordinary small business owner typically operate?

They prefer to use personal resources with limited external funding Signup and view all the answers

What is a common characteristic of an entrepreneur's approach compared to that of an ordinary small business owner regarding business horizons?

Entrepreneurs think globally but act locally Signup and view all the answers

What attitude do ordinary small business owners typically have toward business expansion?

They see expansion as unworthwhile Signup and view all the answers

Study Notes

Motive in Opening a Business

Entrepreneurship aims to create ventures driven by innovative concepts and the ambition for success.
Ordinary small businesses prioritize earning income to sustain livelihood over entrepreneurial ambitions.

Perception of Risk in Business

Entrepreneurs actively embrace and manage risks associated with business operations.
Small business owners view risks as deterrents, often leading to avoidance rather than proactive engagement.

Reactions to Changes in the Environment

Entrepreneurs perceive environmental changes as opportunities for innovation and growth.
Ordinary small businesses remain passive towards environmental shifts, seeing them as potential threats rather than opportunities.

View on Competition

For entrepreneurs, competition is an indicator of a dynamic market that necessitates the enhancement of products and services.
Small business owners often view competition as unfavorable, seeking to minimize its impact rather than leverage it for improvement.

Vision for Development and Growth

Entrepreneurs create structured plans for business direction across short, medium, and long-term goals, driven by a clear vision and mission.
Ordinary business owners tend to rely on luck to sustain their operations, showing limited interest in proactive growth strategies.

Horizon of Business Operation

Entrepreneurs adopt a global perspective while implementing local strategies, cognizant of broader economic trends.
Small business owners focus exclusively on local markets, rarely considering expansion or wider business opportunities.

Sources of Business Funds

Entrepreneurs seek diverse funding sources, looking both internally and externally to support wealth-generating ventures.
Small business owners generally restrict funding to personal finances, often hesitant to engage with financial institutions for support.

Description

This quiz explores the differences between ordinary small business activities and entrepreneurship. It covers various aspects such as motives, risk perception, competition, and business growth vision. Enhance your understanding of these two distinct approaches to business.