16 Questions
What is the first step in the entrepreneurial process?
Deciding to become an entrepreneur
How many net new jobs were created by firms with 500 or fewer employees in 2014?
2 million
What makes entrepreneurial firms impactful on society according to the text?
Offering new products and services that enhance productivity, health, and entertainment
How do many entrepreneurial firms contribute to larger firms according to the text?
By providing products and services that help larger firms become more efficient and effective
In the entrepreneurial process, what does Step 4 involve?
Managing and growing the entrepreneurial firm
Why are small businesses highlighted for their job creation according to the text?
Because they are known for creating a significant number of net new jobs in the United States
Which of the following is NOT a characteristic of entrepreneurial firms according to the text?
Conservative
According to the academic definition provided, which of the following is NOT a key aspect of entrepreneurship?
Controlling existing resources
Which of the following statements about corporate entrepreneurship is TRUE according to the text?
It is a measure of a firm's willingness to take risks and innovate.
According to the alternative view presented in the text, what is entrepreneurship?
The art of turning an idea into a business
Based on the information provided, which of the following statements about the number of books on entrepreneurship and small business is TRUE?
There are more books on small business than on entrepreneurship.
What is the biggest obstacle preventing millennials from starting businesses?
Lack of finances
Which of the following statements about the economic impact of entrepreneurial firms is true?
Small innovative firms are 16 times more productive than larger innovative firms in terms of patents per employee.
Which of the following organizations has been established to encourage college students to consider becoming entrepreneurs?
All of the above
What percentage of all businesses in the United States in 2013 were owned by someone under the age of 30?
3.6%
What is the key role that innovation plays in the entrepreneurial process?
Innovation is the process of creating something new, which is central to the entrepreneurial process.
Study Notes
Changing Demographics of Entrepreneurs
- Only 3.6% of all businesses in the United States were owned by someone under the age of 30 in 2013.
- The biggest obstacles preventing millennials from starting businesses are lack of finances, lack of desire, fear of failure, and lack of knowledge of the business startup process.
Millennial Entrepreneurs
- Many colleges and universities offer courses in entrepreneurship, with over 2,300 institutions offering at least one course.
- Organizations such as 3-Day Startup, Dorm Room Fund, CEO, Startup Weekend, and VentureWell encourage college students to consider entrepreneurship.
Economic Impact of Entrepreneurial Firms
- Small innovative firms are 16 times more productive than larger innovative firms in terms of patents per employee.
- Entrepreneurial firms have a significant impact on society, creating new products and services that improve lives, productivity, and health.
What Is Entrepreneurship?
- Entrepreneurship is the process of pursuing opportunities without regard to resources currently controlled (Stevenson and Jarillo).
- Entrepreneurship is the art of turning an idea into a business (alternative view).
- Entrepreneurs assemble and integrate resources to transform an idea into a viable business.
Corporate Entrepreneurship
- Corporate entrepreneurship is the conceptualization of entrepreneurship at the firm level.
- Firms fall along a continuum from highly conservative to highly entrepreneurial, with their position referred to as their entrepreneurial intensity.
Why Become an Entrepreneur?
- Small businesses create a substantial number of net new jobs in the United States.
- Firms with 500 or fewer employees created two million of the roughly three million private sector jobs in 2014.
The Entrepreneurial Process
- The entrepreneurial process consists of four steps: deciding to become an entrepreneur, developing successful business ideas, moving from an idea to an entrepreneurial firm, and managing and growing the entrepreneurial firm.
- The entrepreneurial process involves taking risks, being proactive, and being innovative.
Test your knowledge on how small businesses contribute to job creation and the impact of entrepreneurial firms on society. Explore the relationship between small and large firms in job creation and innovation.
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