Questions and Answers
Define E-Myth.
The myth of the entrepreneur. Gerber says most small businesses are not started by entrepreneurs, despite the romantic belief.
What is an Entrepreneurial Seizure?
The moment where a person realizes they can start their own business.
Define the Fatal Assumption.
If you understand the technical work of a business, you understand a business that does that technical work.
What is the 'real tragedy' when a technician falls to the Fatal Assumption?
Signup and view all the answers
What are symptoms of someone who has an Entrepreneurial Seizure? (Select all that apply)
Signup and view all the answers
Looking at business owners, what is the average balance of Entrepreneur, Manager and Technician?
Signup and view all the answers
List traits of a Technician.
Signup and view all the answers
List traits of a Manager.
Signup and view all the answers
List traits of an Entrepreneur.
Signup and view all the answers
What are the 3 phases of a business's growth?
Signup and view all the answers
What occurs during the Infancy stage?
Signup and view all the answers
What occurs during the Adolescence stage?
Signup and view all the answers
At what point does the Adolescence stage kick into effect?
Signup and view all the answers
Describe the difference between Management by Abdication versus Delegation.
Signup and view all the answers
Define an owner's Comfort Zone.
Signup and view all the answers
What are the 3 courses of action that can be taken once the owner's Comfort Zone has been outgrown?
Signup and view all the answers
According to the SBA, how many small businesses close their doors each year?
Signup and view all the answers
Describe 'Going for Broke'.
Signup and view all the answers
What occurs during the Adolescent Survival stage?
Signup and view all the answers
Study Notes
E-Myth Overview
- E-Myth refers to the myth that most small businesses are started by genuine entrepreneurs, challenging romantic notions of entrepreneurship.
- Entrepreneurial Seizure describes the moment when an individual realizes their ability to start a business and believes they can do it better.
Fatal Assumption
- Fatal Assumption is the belief that understanding the technical aspects of a business equates to understanding how to run a business in that field.
Technician's Tragedy
- The "real tragedy" is when a technician, believing they’ve escaped traditional employment, becomes enslaved by their own business.
Entrepreneurial Seizure Symptoms
- Symptoms experienced: exhilaration, terror, exhaustion, despair, representing the emotional rollercoaster of starting a business.
Business Owner Balance
- Typical balance for business owners: 10% Entrepreneur, 20% Manager, 70% Technician, illustrating the predominance of technical skills over entrepreneurial vision.
Traits of Business Roles
- Technician traits include being a "doer," enjoying tinkering, focusing on present tasks, and having an interest in practical execution.
- Manager traits are characterized by planning, a desire for order, focusing on past experiences, and pragmatism.
- Entrepreneur traits include being a visionary, a dreamer, seeking control, future-oriented, and craving change.
Phases of Business Growth
- Businesses grow in three phases: Infancy, Adolescence, and Maturity.
- In the Infancy stage, owners act as "Master Jugglers," with the business identity intertwined with their own.
- Adolescence begins as owners realize change is necessary for success, often triggered by a crisis in the earlier stage.
Management Approaches
- Management by Abdication involves abandoning responsibility, while Delegation is about selectively handing off tasks to others.
Owner's Comfort Zone
- The Comfort Zone is defined as the boundaries where an owner feels secure and capable of managing their environment, with varying limits for Technicians, Managers, and Entrepreneurs.
Actions After Outgrowing Comfort Zone
- After exceeding the Comfort Zone, owners may choose to: downsize (Getting small again), take significant risks (Going for Broke), or navigate the pressures of survival (Adolescent Survival).
Business Closure Statistics
- Annually, more than 400,000 small businesses close their doors, indicating high turnover in the industry.
Going for Broke Defined
- "Going for Broke" characterizes a company's rapid growth that leads to self-destruction due to unsustainable momentum.
Adolescent Survival Stage
- During Adolescent Survival, the owner becomes overwhelmed by the demands of the business, potentially leading to burnout or breakdown.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers key concepts from Chapters 1-5 of 'The E-Myth' book by Michael E. Gerber. Learn about the myths surrounding entrepreneurship, the entrepreneurial seizure, and the fatal assumptions that can hinder business success. Ideal for those studying entrepreneurship and small business management.