How did you do?
After attempting the self-assessment entrepreneurial test, I have managed to score a general average of 174 which is above the average obtained by entrepreneurs. Other areas where I have exceeded the average score for an entrepreneur are: Your motivations (average score: 62), Need for achievement/ success (average score: 18), Power/control appeal (average score: 19), Self-sufficiency/freedom (average score: 14), Perseverance/determination (average score: 15), Self-confidence / enthusiasm (average score: 15), and Creativity/imagination (average score: 22), and Perception to act upon one's destiny (average score: 21). These scores indicate my potential as a would-be entrepreneur. They depict that I possess the basic characteristics of a successful Canadian entrepreneur.
What is the difference between an entrepreneur and a small business owner? Are they the same? What do you think (“critical thinking”) was the intention behind this site?
To a layman, being an entrepreneur or a small business owner is interchangeable but in the real sense they are not the same. It is true both are self-employed and they are after money, but there are few differences. Entrepreneurs hardly want things to stay as they are rather they are they are ever looking to transform things, create more energy, and improve things (Keith, Unger, Rauch, & Frese, 2016). Small business owners, on the other hand, are usually contented with the way things are, satisfied to keep going (if successful). Entrepreneurs formulate and invent things, aim at doing things differently and are usually technically minded. In contrary, small business owners are more likely to do things other people are doing, like venturing in an already existing business idea.
The main intention of this site was to enable the test taker figure out where he/she has the pertinent characteristics of an entrepreneur or not. I am saying so since it provides one with average scores based on the traits he/she depicts through answering the questions.
Do you believe that all small business owners are entrepreneurs?
All small business owners are not entrepreneurs since they lack the vital features of an entrepreneur both in person and also their business activities (Wagner, 2006). Most of them cannot be said to be entrepreneurs since their main aim is to making profits regardless of the activities they will carry out to realize the profits. They are in contrary to entrepreneurs whose aim is try different ways of doing things - ones that are more sophisticated and resourceful. Some of them can be considered as entrepreneurs since it is possible to be entrepreneur and a small business owner at the same time.
Discuss the importance of small business to the Canadian economy.
Small and Medium Sized Enterprises (SMEs) with not more than 500 employees contribute 54.2% to Canada’s GDP (Canada.ca, 2015). This contribution increases further in relation to the industry. SMEs are also renowned for their job creating capacities and thus help reduce the unemployment menace in Canada. Also small businesses often fill market niches which big businesses are reluctant to compete in. SMEs, due to their innovative nature help in the creation of specialized products.
Why has there been an increased interest in small business and entrepreneurship?
There are various reasons why financial institutions charge small businesses and entrepreneurs high interest rates. Low interest rates turn out to be lower profits generated from making loans, and this normally discourages banks to grant credit requests made by small businesses and entrepreneurs. So, these entities must be charged higher interest rates to guarantee them a reliable source of loans whenever they need them (Arora, 2015)
Arora, R. ( 2015). Why Higher Interest Rates Are Good for Small Business. Rising interest rates make loans more profitable for big banks to approve, thereby encouraging them to grant more funding requests. Retrieved from: https://www.inc.com/rohit-arora/why-higher-interest-rates-are-good-for-small-business.html
Canada.ca, (2015). The Contribution of Small and Medium-sized Businesses to Gross Domestic Product: A Canada-United States Comparison. Main article. Retrieved from: https://www150.statcan.gc.ca/n1/pub/11f0027m/2011070/part-partie1-eng.htm
Keith, N., Unger, J. M., Rauch, A., & Frese, M. (2016). Informal learning and entrepreneurial success: a longitudinal study of deliberate practice among small business owners. Applied Psychology, 65(3), 515-540.
Wagner, B., (2006). What's Your Entrepreneurial Personality Type? Retrieved from: https://www.entrepreneur.com/article/84134