Answer Chapter Entrepreneurship Essay Example

Answer Chapter Entrepreneurship Essay Example Answer Chapter Entrepreneurship Paper Answer Chapter Entrepreneurship Paper INC Magazine claims, Entrepreneurship is more mundane than Its sometimes arrayed You dont need to be a person of mythical proportions to be very, very successful in building a company. Do you agree? Explain. Answer own answer 4. Will vary according to the student. 4. What are the major benefits of business ownership? Answer a) opportunity to gain control over your destiny, b) opportunity to make a difference, c) opportunity to reach your full potential, d) opportunity to reap unlimited profits, e) opportunity to make a contribution to society and receive recognition for your efforts. Nell AT ten potential rearwards to Dustless ownership are most critical? Students responses will vary but should cover the following drawbacks: a) uncertainty of income, b) risk of losing invested capital, c) long hours and hard work, d) lower quality of life until the business gets established, d) complete responsibility. 61. Briefly describe the role of the following groups in entrepreneurship: women , minorities, immigrants, part-timers, home-based business owners, family business owners, coroners, corporate castoffs, and corporate dropouts. Answer -own answer 7. What contributions do small businesses make to our economy? Answer There is no set definition of a small business. SABA criteria vary by industry, see page 36. 98% of U. S. Businesses could be considered small. Theyve contributed almost all of the recent Job growth, employ over 50% of the private workforce, and contribute 48% of our GNP and 42% of all business sales. 8. Describe the small business failure rate. Answer The failure rate for small businesses is higher than for big businesses. Based on data released from SABA, 60 percent of new businesses fail within six years. The primary reason is incompetent management. Other reasons are poor financial control, failure to plan, I n appropriate location, lack of inventory control, improper managerial attitudes, and in ability to make the entrepreneurial transition. 9. Outline the causes of business failure. Which problems cause most business failures? Answer Management incompetence This one causes the most problems. The manager lacks the capacity to operate a small business successfully. Lack of experience. Many owners who start businesses in fields in which they have no prior experience fail. Some owners lack the right kind of experience. Poor financial control Internationalization -Starting the business on a shoestringoften leads to failure. Lack of strategic planning -Too many owners neglect it because they think it only benefits large companies. Uncontrolled growth Growth is natural and healthy, but unplanned growth can be fatal to the business. Inappropriate location Owners who choose a business location without proper analyses, Investigation, Ana planning oaten Tall. Lo Orin, owners seek canapà © sleets and locate themselves straight into failure. Lack of inventory control Although inventory is typically the largest investment for the owner, inventory control is one of the most neglected duties. The result is loss through crime and pressure on cash flows from handling the wrong items. Inability to make the entrepreneurial transition Having started the business, some entrepreneurs lack the ability to manage it when it gets larger and fail to turn it over to a different management team. 10. How can the small business owner avoid the common pitfalls that often lead to business failure? Answer Doing the following will help to avoid pitfalls: ) know the business in depth, b) prepare a business plan, c) manage financial resources, d) understand financial statements and know how to use them, e) learn to manage people effectively, f) keep in tune with yourself. 1 1 . Why is it important to study the small business failure rate? Answer It provides a realistic picture for potential entrepreneurs to consider prior to their launching of their businesses. It provides understanding of why businesses fail and offers insight into ways to prevent it. 12. Explain the typical entrepreneurs attitude toward failure. Answer He/she learn from the mistakes and tries again. He/she takes moderate, considered risks, has a positive upbeat attitude, and doesnt avoid failure; he/she learn from it. 13. One entrepreneur says that too many people dont see that by spending their lives afraid of failure, they become failures. But when you go out there and risk as I have, youll have failures along the way, but eventually the result is great success if you are willing to keep risking. For every big yes in life, there will be 199 nose. Do you agree? Explain. Answer Students responses will vary. 14. What advice would you offer an entrepreneurial friend who has Just suffered a Answer Students responses will vary but the advice should include a reality check, long hours, high failure rate, and a dose of the positive, persist, learn, dont give up. 15. Noting the growing trend among collegiate entrepreneurs launching businesses while still in school, one educator says, A student whose main activity on campus is running a business is missing the basic reason for being here, which is to get an education. Do you agree? Explain. Answer- Students responses will vary. Step into the Real World . Choose an entrepreneur in your community and interview him or her. Whats the story behind the business? What advantages and disadvantages does the owner see In analog Dustless want value wool a en or seen offer to someone considering launching a business? 2. Search through recent business publications (especially those focusing on small companies such as Inc. , Entrepreneur, Business Start-ups, Nations Business, or Your Company) and find an example of an entrepreneurpast or presentwho exhibits the entrepreneurial spirit of striving for success in the face f failure as Gail Borden did. Prepare a brief report for your class. 3. Select one of the categories under the section The Diversity of Entrepreneurship in this chapter and research it in more detail. Find examples of the entrepreneurial profile. Prepare a brief report for your class. 4. Lengthier a local banker who has experience lending to small companies. What factors does he or she believe are important to a small companys success? What factors has he or she seen to cause business failures? What does the lender want to see in a business startup before agreeing to lend any money?