16 Questions
What is a key difference between small firms and large firms according to the text?
Small firms lack scale advantages that large firms have.
Which type of firms are defined based on firm age in the text?
New/young firms and established firms
What motivates necessity entrepreneurs according to the text?
Push factors as a last-ditch effort for economic survival
Which sector of activity do formal entrepreneurs focus on?
Legally registered new firms in a country
What is a common challenge faced by small firms according to the text?
Market failure when it comes to financing
Which group is referred to as prospective entrepreneurs in the text?
Those with skills and intentions to start a business
What distinguishes nascent entrepreneurs from high-growth entrepreneurs?
Nascent entrepreneurs focus on taking initial actions to set up their business, while high-growth entrepreneurs grow rapidly over a short period of time.
Which theory explains entrepreneurship as an occupational choice based on expected utility and opportunity costs?
Rational choice theory
According to O'brien et al. (2003), how does uncertainty impact entry into entrepreneurship?
Uncertainty lowers the rate of entry into entrepreneurship.
What factor intensifies the impact of uncertainty on investment decisions in the context of entrepreneurship?
Lower regional concentration of similar firms
How does Liang et al. (2018) view the effect of workforce aging on entrepreneurship rates?
Older employees gain valuable experience for entrepreneurship, leading to a decline in entrepreneurship rates.
According to theory, why do small firms produce most entrepreneurs?
Small firms provide a good training ground and spawn entrepreneurs at a higher rate than larger firms.
What differentiates creative destruction from creative construction in the context of new startups?
'Creative destruction' involves new companies from new knowledge, while 'creative construction' involves employees from existing companies starting new ventures.
Why is the entry of new firms considered important in the context of industries?
To bring about transformation or renewal of industries
'Serial entrepreneurs' are individuals who...
...sell or step back from one business before starting another.
What factors influence occupational choices according to Levesque & Minniti (2006)?
Inherent factors such as age and contextual factors like taxation.
Explore the key differences between small and new firms compared to large firms, focusing on aspects like liability, formality, bureaucracy, and internal opportunity structure. Understand the specific challenges faced by small firms, including market failure in financing.
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