Small Business & Entrepreneurship Quiz
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Questions and Answers

What is a founder in the context of entrepreneurship?

  • An entrepreneur who works in a partnership
  • A person who brings a new firm into existence (correct)
  • A person who manages an ongoing business
  • An investor who funds new ventures

    • What characterizes a second stage entrepreneur?

  • They operate under a strict franchise agreement
  • They oversee the operations of an ongoing business (correct)
  • They bring a completely new idea to the market
  • They primarily focus on social issues

    • How does being a franchisee limit an entrepreneur's power?

  • They must adhere to standards set by the franchising organization (correct)
  • Their business must be online only
  • They can only operate in certain geographic regions
  • They have no control over product pricing

    • Which statement best describes social entrepreneurship?

    <p>Involves innovative solutions to societal problems</p> Signup and view all the answers

    What common challenge do women entrepreneurs face?

    <p>Lack of access to credit</p> Signup and view all the answers

    What is an entrepreneurial team?

    <p>Two or more people collaborating as entrepreneurs</p> Signup and view all the answers

    Which trend has been noted in the context of women entrepreneurs?

    <p>More women entering established industries with less representation</p> Signup and view all the answers

    What does the triple bottom line for social entrepreneurs include?

    <p>People, profits, and the planet</p> Signup and view all the answers

    What percentage of all firms do small businesses represent?

    <p>99.7%</p> Signup and view all the answers

    Which type of business is characterized by minimal profits to its owner?

    <p>Microbusiness</p> Signup and view all the answers

    What is a defining characteristic of small businesses in terms of employment?

    <p>They employ over 50% of employees in the private sector.</p> Signup and view all the answers

    Which statement best describes an entrepreneurial legacy?

    <p>It refers to the impact and challenges faced by entrepreneurs.</p> Signup and view all the answers

    What distinguishes an opportunistic entrepreneur from an artisan entrepreneur?

    <p>They have a wider view of strategy.</p> Signup and view all the answers

    Why is it important for entrepreneurs to understand their motivations?

    <p>It assists in goal setting and sustained business direction.</p> Signup and view all the answers

    Which competitive advantage can small entrepreneurial companies have over larger firms?

    <p>Greater flexibility in decision-making.</p> Signup and view all the answers

    Which of the following characteristics is typical of an artisan entrepreneur?

    <p>Paternalistic approach to leadership.</p> Signup and view all the answers

    Which type of business is defined by its owner's desire to maintain a specific lifestyle?

    <p>Lifestyle Business</p> Signup and view all the answers

    Which of these traits is NOT associated with millennial entrepreneurs?

    <p>They have limited experience with technology.</p> Signup and view all the answers

    What type of marketing approach do opportunistic entrepreneurs typically adopt?

    <p>Diversified marketing approach.</p> Signup and view all the answers

    What percentage of private payrolls do small businesses account for?

    <p>43%</p> Signup and view all the answers

    How do artisan entrepreneurs typically approach capital?

    <p>They primarily rely on personal savings.</p> Signup and view all the answers

    Which characteristic best describes an opportunistic entrepreneur's approach to problem-solving?

    <p>Scientific approach.</p> Signup and view all the answers

    Which of the following is a common feature of millennial entrepreneurs?

    <p>Idealistic outlook.</p> Signup and view all the answers

    What is a major drawback of the artisan entrepreneur model?

    <p>They have a short planning horizon.</p> Signup and view all the answers

    What characteristic is associated with successful entrepreneurs regarding risk?

    <p>Moderate risk takers</p> Signup and view all the answers

    Which of the following is NOT a way to fail as an entrepreneur?

    <p>Hiring highly skilled professionals</p> Signup and view all the answers

    What does 'locus of control' signify in the context of entrepreneurship?

    <p>Self-reliance and personal accountability</p> Signup and view all the answers

    Which is a significant consequence of hiring mediocre people as an entrepreneur?

    <p>Limited growth potential for the business</p> Signup and view all the answers

    Which mindset is considered a hindrance to entrepreneurial success?

    <p>Taking oneself too seriously</p> Signup and view all the answers

    What is a critical aspect of ownership sharing within a business?

    <p>Sharing ownership in an equitable way</p> Signup and view all the answers

    Which of the following best defines 'tenacity' in entrepreneurship?

    <p>Consistent persistence in pursuing goals despite challenges</p> Signup and view all the answers

    What is one effect of failing to understand the market as an entrepreneur?

    <p>Ineffective business strategies</p> Signup and view all the answers

    Which characteristic reflects an entrepreneur's ability to deal with unpredictability?

    <p>Adaptability</p> Signup and view all the answers

    What characteristic is associated with an entrepreneur's desire to achieve excellence?

    <p>Motivation to Excel</p> Signup and view all the answers

    Which characteristic best describes an entrepreneur's willingness to take calculated risks?

    <p>Tolerance of Risk</p> Signup and view all the answers

    Which entrepreneurial characteristic involves the ability to inspire and guide others?

    <p>Leadership</p> Signup and view all the answers

    What trait reflects a deep focus on identifying and capitalizing on new opportunities?

    <p>Opportunity Obsession</p> Signup and view all the answers

    Which characteristic is most closely aligned with resilience in challenging situations?

    <p>Determination</p> Signup and view all the answers

    Which characteristic is related to an entrepreneur's innovative thinking?

    <p>Creativity</p> Signup and view all the answers

    Which entrepreneurial trait encompasses a positive mindset toward challenges and changes?

    <p>Attitudes and Behaviors</p> Signup and view all the answers

    Which characteristic involves an awareness of one's own abilities and confidence in decision-making?

    <p>Self-Reliance</p> Signup and view all the answers

    What aspect of entrepreneurial mindset is associated with managing confusion in new business ventures?

    <p>Ambiguity</p> Signup and view all the answers

    Study Notes

    Small Business & Entrepreneurship

    • Small businesses account for 99.7% of all firms, employ over 50% of the private workforce and create 43% of private sector payrolls.
    • Small businesses employ 43% of all high-tech workers and represent 97.3% of all exporters.
    • Small businesses provide increased business ownership opportunities for minorities and self-employed people with degrees.

    Small Business Growth Potential and Profits

    • High-Potential Ventures (Gazelles) have significant potential for growth.
    • Attractive Small Firms generate substantial profits for their owners.
    • Microbusinesses offer minimal profits to their owners, providing a modest income.
    • Lifestyle Businesses allow owners to pursue their desired lifestyle.

    Entrepreneurial Characteristics

    • Entrepreneurs often possess strong commitment and determination, motivation to excel, creativity and self-reliance, adaptability and tolerance for risk, ambiguity, and uncertainty.

    Strong Entrepreneurial Characteristics

    • Successful entrepreneurs are committed to their business with tenacity, have a strong locus of control, are moderate risk takers, and display a moderate level of risk-taking behavior.

    Ways to Fail as an Entrepreneur

    • Overestimating one's capabilities
    • Lacking an understanding of the market
    • Hiring mediocre individuals
    • Not being a team player
    • Being a domineering manager
    • Failing to share ownership equitably

    Varieties of Entrepreneurship

    • Founders are those who create new businesses.
    • Second Stage Entrepreneurs manage the ongoing operations of established businesses.
    • Franchisees operate businesses under a contractual agreement with a franchising organization.
    • Entrepreneurial teams consist of two or more individuals collaboratively working as entrepreneurs.

    Types of Entrepreneurship

    • Social Entrepreneurship focuses on finding innovative solutions to critical societal needs and issues.
    • Social Entrepreneurs aim to address societal and environmental problems while incorporating the triple bottom line of people, profits, and the planet.

    Women Entrepreneurs

    • There is a growing number of women business owners.
    • Female entrepreneurs face challenges such as gender discrimination, limited access to credit, and networking difficulties.
    • Balancing work and family life can also be a challenge for women entrepreneurs.

    Artisan Entrepreneurs

    • Artisan Entrepreneurs are skilled individuals with limited business knowledge, who start their own ventures.
    • They often adopt a paternalistic approach, delegate little, use limited capital, and have a traditional marketing strategy. They focus on personal sales efforts and have a short planning horizon.

    Opportunistic Entrepreneurs

    • Opportunistic Entrepreneurs possess both technical expertise and sophisticated managerial skills. They typically have broad-based education, a scientific approach to problem solving, and are willing to delegate.
    • They often have a wide strategic vision, engage in diverse marketing efforts, employ a longer planning horizon, and utilize sophisticated accounting and financial control.

    Millennial Entrepreneurs

    • Millennials are comfortable working with technology, idealistic and optimistic, collaborative, and prioritize community building.
    • They often start businesses while learning about entrepreneurship, embracing the concept of failing fast, learning from failures, and persevering.

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    Small Business Management Chapter 1 PDF

    Description

    Test your knowledge about the significance of small businesses and their impact on the economy. Explore entrepreneurial characteristics and insights into different types of small firms, their growth potential, and profitability. This quiz will challenge your understanding of key concepts in small business and entrepreneurship.

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