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Macro and micro views of entrepreneurship

1. Briefly describe the evolution of the term entrepreneurship.
2. What is the macro view of entrepreneurship?
3. What is the micro view of entrepreneurship?

Topic 2 The Entrepreneurial Mind-Set in Individuals: Chapter 2

 1. What is “entrepreneurial cognition” and how does it impact the mind-set of entrepreneurs? How does “metacognition” come into play here?
2. Entrepreneurs have a tolerance for ambiguity, are calculated risk takers, and exude passion. What do these characteristics mean for any potential entrepreneur?
3. Is it true that most successful entrepreneurs have failed at some point in their business careers? Explain.

Topic 3 The Entrepreneurial Mind-Set in Organizations Chapter 3

1. In your own words, what is corporate entrepreneurship?
2. What are two reasons that such a strong desire to develop corporate entrepreneurs has arisen in recent years?
3. What are some of the corporate obstacles that must be overcome to establish a corporate entrepreneurial environment?

Topic 4 Social Entrepreneurship and the Global Environment for Entrepreneurship. Chapter 4

1. Outline a few of the current trends that illustrate the social entrepreneurship movement.
2. Define a social entrepreneur.
3. Describe the challenging boundaries involved with social enterprise.

Topic 5 Innovation Chapter 5

1. Describe opportunity identification for the entrepreneur.
2. How are prior knowledge and learning important to the recognition of opportunities?
3. What are the major sources of innovative ideas? Explain and give an example of each.

Topic 6 Assessment of Entrepreneurial Opportunities. Chapter 6

1. Explain the challenges involved in new-venture development.
2. Describe some of the key factors involved in new-venture performance (use Figure 6.1).
3. Many entrepreneurs lack objectivity and have no real insight into the market. Why are these characteristics considered pitfalls of selecting new ventures?

Topic 7 Pathways to Entrepreneurial Ventures. Chapter 7

1. Identify the three main pathways to entering business for a prospective entrepreneur.
2. What is the new-new approach to starting a new venture? How does this approach differ from a new-old approach?
3. What are the advantages of buying an ongoing business? Explain them.

Topic 8 Sources of Capital for Entrepreneurial Ventures. Chapter 8

1. Describe some of the sources of capital available to entrepreneurs, and discuss how they correlate to the varying levels of risk involved with each stage of the venture.
2. What are the benefits and drawbacks of equity and of debt financing? Briefly discuss both.
3. If a new venture has its choice between long-term debt and equity financing, which would you recommend? Why?

Topic 9 Legal Challenges for Entrepreneurial Ventures. Chapter 9

1. In your own words, what is a patent? Of what value is a patent to an entrepreneur? What benefits does it provide?
2. In your own words, what is a copyright? What benefits does a copyright provide?
3. In your own words, what is a trademark? Why are generic or descriptive names or words not given trademarks?

Topic 10 C Marketing Research for Entrepreneurial Ventures. Chapter 10

1. Describe the “new” marketing concept for entrepreneurs with the 4Cs.
2. In your own words, what is a market? How can marketing research help an entrepreneur identify a market?
3. What are the five steps in the marketing research process? Briefly describe each.
4. Which is of greater value to the entrepreneur, primary or secondary data? Why?

Macro and micro views of entrepreneurship

Ans1. The word “entrepreneurship originated from the French word “entre prendre”, which states to undertake. It started as a concept to recognize one who carries out to organize and manage the risks of the business. It is stated that several definitions are being used to determine entrepreneurship, which has associated with capitalism and free enterprise, while specific activities have been predicted that entrepreneur serve as a catalyst for transformation, assist to grow the business, encourage to perform, deliver creative ideas for the organization, and make profits for the future. Entrepreneurship has been defined as the method of launching a new business, which typically delivers a product, service, or process for sale (Kuratko, 2016).        

Q.2What is the macro view of entrepreneurship.

Ans2. The macro view of entrepreneurship determines an extensive range of factors that associate to failure or success in entrepreneurial ventures. This range of factors involves external processes that are often beyond the individual’s control. It is a view, which represents broad factors in entrepreneurial process in the external locus of control. There are three schools of thought involves the environmental school, which deals with external aspects that impact the lifestyle of a potential entrepreneur. The financial school deals from a financial point of view. The displacement school of thought focuses on the adverse side of the group, where someone can be displaced from the group (Welter et al., 2017).

Q.3What is the micro view of entrepreneurship.

Ans3. The micro view of entrepreneurship evaluates the aspects that are specific, which is a part of internal locus of control. The potential entrepreneur has the capability to manage the outcome of major influence. It also categorizes in three schools of thought, which involves the entrepreneurial school concentrates on researches about identifying similar characteristics that can enhance the opportunities for the future. The venture school of thought deals with the capability to identify new opportunities and ideas and execute the necessary action. The strategic formulation of thought concentrates on profitable venture development (Davidsson, 2015).       

Q.1What is “entrepreneurial cognition and how does it affect entrepreneurs mindset? How does “metacognition come into play here?

Ans1.The cognition of entrepreneur is determined as the structures that people use to make appropriate decisions, judgments, and assessments incorporating venture creation, growth, and development. It is maintained to how an entrepreneur thinks, innovate new things, and based on the matters of thinking upon the reason for doing things. Entrepreneurial cognition is about understanding in which manner entrepreneur utilize models to collaborate that assist them to renovate new product and accumulate the required resources to grow and develop the business. Metacognition is the study of higher-study cognitive processes so that the entrepreneur can frame the task effectively and efficiently. It involves a particular strategy gathered into a new set of various responses to the decision task (Shepherd et al., 2019).

Corporate Entrepreneurship and its obstacles

Q.2 Entrepreneur has a tolerance for ambiguity is termed as risk takers. What do these characteristics mean for any potential entrepreneur?

Ans2. Start-up entrepreneur deals with uncertainty compounded by continuous changes that introduce stress and ambiguity into each aspect of the business. It is stated that surprises and setbacks are unavoidable, which involves structure, order, and delegation, and lack of organization is a way of life. A tolerance for ambiguity exists when the entrepreneurs face several transformation and setbacks continuously in their careers and can easily adapt to diverse situations. They are also willing to take risk frequently, adapt it in a careful manner, and avoid taking unnecessary risks. They are passionate about their employment, which means that they are involved in actions in which they are interested in (Lian and Yen, 2017).

Q.3Is it true that entrepreneurs have failed in their business careers.

Ans3.Yes, it is true because of the reason as ventures generated to pursue unique and innovative opportunities fail due to the uncertain situation within which they grow and develop. It is quite satisfied for entrepreneurs to fail at some point in their business careers and there are other reasons for the decline of entrepreneurs like poor marketing, promotional activities, human resource planning, and poor management (Wyrwich, Stuetzer and Sternberg, 2016).

Q.1What is corporate Entrepreneurship.

Ans1. Corporate Entrepreneurship is a process in which a person or a group of person in relation to an existing company. It generates a new organization or initiates development within an organization. A method assists the organization’s efforts to innovate continuously and adapt efficiently with the competitive environment that organization experience when contending in the international market. It assimilates the activities that attain resource commitments and organizational sanction for the objective of innovative results (Dentchev et al., 2016).  

(Hughes and Mustafa, 2017)

Q.2What are two reasons that such a strong commitment to maintaining corporate entrepreneurs, which has arisen in recent years?   

Ans2. The reasons, which elaborate on the strong commitment to develop corporate entrepreneurship, which has grown in recent years, are economic development, competition, and publicity. It traditionally maintained the organization, which has a well-suited structure for the internal efficiencies of distributing controlled resources. It is significant to keep the entrepreneurial spirit in a company to grow and innovate (?yigün, 2015).

Q.3 Elaborate corporate obstacles that must be overcome to develop corporate entrepreneurial environment.

Ans3. The obstacles to corporate entrepreneurship normally deliberate the ineffectiveness of traditional management techniques as applied to profitability and growth. It is unintentional as the negative effect of a particular method can be so destructive that the people within an organization will lead to avoid corporate entrepreneurial. These obstacles are critical to the development of corporate entrepreneurship as they develop the basis for all other motivational efforts. The corporate obstacles, which must be overcome to maintain corporate entrepreneurship, are inefficient operations & low motivation, low market penetration, missed opportunities, the wrong decision about the market, and venture failure (Foss and Saebi, 2017).  

Social entrepreneurship trend

Q.1 Describe some of the current trends that illuminate the social entrepreneurship movement.

Ans1. The current trends that illustrate the social entrepreneurship movement are-

  • The passion of young individuals
  • Get to the root of the international concern
  • Collaboration (van der Have and Rubalcaba, 2016)

Q.2 Elaborate social entrepreneur.

Ans2. A social entrepreneur is a form of entrepreneurship, which exhibits feature of non-profits, administration, business, large-scale innovation with solving the social concern, risk-taking, and combining private-sector concentrate on innovation. The process of social entrepreneurship begins with a perceived social growth into an organization in which resources and assets are acquired and established to implement the organization objectives. It assists in embracing the mission to sustain and generate social value, increased the sense of accountability, the creation of opportunities for social value, and engagement of continuous development (Hlady?Rispal and Servantie, 2018).

Q.3 Explain the challenging boundaries engaged with social enterprise.

Ans3. It is stated that non-profit with income strategies involve the social enterprise performing the corporate and social entrepreneurial activity to attain self-reliance. Social-centric businesses execute commercial and social entrepreneurial activity to attain sustainability. He works with an organization, which is financially independent and the stakeholders can achieve advantage from personal economic gain (Busenitz et al., 2016).

Q.1 Elaborate opportunity identification for the entrepreneur.

Ans1. Opportunity identification is emerging as a significant aspect of entrepreneurial innovation. A competency can be maintained for developing the capabilities and abilities to recognize opportunities. It shows that people can learn methods of opportunity identification and enhance the concept of innovation and idea generation. Additionally, it deliberates the predisposition towards innovation does not substantially alter the capability of opportunity identification (Suddaby, Bruton and Si, 2015).

Q.2How is prior to learning and knowledge significant to the opportunity identification.

Ans2.  It is stated that it assists the entrepreneur to maintain the unusual sources of encouraging innovative ideas into potential opportunities.  It helps in understanding experiences and establishments. The entrepreneur must identify their opportunities and develop the existing knowledge and understanding, education, and work experience. General industry learning, specific industry knowledge, previous understanding, prior customer experience, and education assists in managing unusual sources of developing innovation and growth (Yitshaki and Kropp, 2016).  

Q.3 Explain the major source of innovative ideas.

Ans. The major sources of innovative ideas are-

  • Demographic changes- healthcare and old population
  • Inconsistencies- FedEx
  • Trends- Mobile phones, technology
  • Knowledge-based concepts- Mobile phones should involve their camera quality to be good (Chan and Parhankangas, 2017).

Q.1 Describe the challenges in new-venture development.

Ans1. The challenges involve in new-venture development involve are-

  • Finance- It is stated that finance is the main challenge to start a business because of the difficult economic and social environment. Based on the matters of customer needs and market situations, the entrepreneur should manage the needs of the customers, employees, and investors.
  • Human Resources-The next challenges is the procurement of skilled human resource as they have to give proper training and motivate them in order to generate profitability.  
  • Customer preferences-Change in their needs and tastes can have a major effect on the demand and potential of the product (Kuratko and Morris, 2018).

Q.2 Explain some of the significant factors engaged in new-venture development.

Ans2. The critical factors involved in new-venture development are-

  • Investment and market size
  • Customer and product accessibility
  • Anticipated sales growth involves high-growth venture and small profitable venture

(McKelvie, Wiklund and Brattström, 2018)

Challenges in new-venture development

Q.3Why is these characteristics are determined as pitfalls of selecting new-venture development.

Ans3. It is stated that this stage of transition from an idea generation to potential venture development can be the most critical for the development of new-venture transition.

  • The absence of objective evaluation- Several entrepreneur lack objectivity as it seems unaware of the preference of the scrutiny in the general work of their understanding. In this manner, it avoids the pitfalls to constant investigate and study upon the matter.
  • The inefficiency of technical requirements- The innovation of product probably includes various techniques, which assists in maintaining a new-venture. Their unexpected technical difficulty commonly poses costly and time-consuming (Abor, 2017).

Q.1 Recognize the three main pathways for a prospective entrepreneur.

Ans1. The three main pathways for the entrepreneur are-

  • Purchasing an existing venture- It helps in attaining future success and development in order to attain profitability. It also reduced effort, time, and productivity and helps in achieving a minimum price.
  • Buying franchise- It helps in combining large corporation and interdependence of an organization. The franchise is commonly economically and legally dependent.  
  • Social venturing- It is stated that entrepreneur directed by a motivation to discover the solution to environmental concerns (Roundy et al., 2018).

Q.2What is the new-new approach and how it differs from a new-old approach?

Ans2. The new approach states the most common business idea that leads to emerging from individual experiences. It explains the common source of ideas, which are personal problems, hobbies, and interests. It brings an existing idea to a new approach, enhance competition, and mitigate difficulties. It differs from the new-old approach in that manner to cooperate within team and departments and manage the employee participation with modern business strategies (Melvin, 2016).  

Q.3 Describe the advantages of purchasing an on-going venture.

Ans3. The advantages of acquiring an on-going venture are-

  • Good Price: It is stated that sometimes it is possible to acquire a venture at a very effective price. They might develop the opportunity to trade the business for the critical situation that has occurred.
  • Reduced effort and time: An existing enterprise has managed the equipment, necessities, human workforce, and inventory. They have spent enough time working out of the bugs so that the business is carried out effectively and efficiently. However, if the new owners should deal with the human workforce in an equal manner, they need not worry about hiring, placing, training, and motivating employees (Shams, 2016).

Q.1Elaborate the sources of capital for the entrepreneur and interrelate to the varying level of risk at each stage of the venture.

Ans1. The source of capital for each entrepreneur is-

  • Personal investment: It is stated that in respect to starting a new business, an initial investor should be yourself either by petty cash or by the collateral of your assets. This is proven a fact that bankers and investors to have a broad commitment and easily adapt to the risks. In this risk, variation is 100% risk as if your new venture fails then your whole money is at risk.
  • Venture capital: It is not necessarily for all entrepreneurs. They are looking for companies with technology driven and organizations with high-growth potential like communication and information technology. In this risk capitalization is low, as they need to invest after generating knowledge and experience.
  • Angels: They are commonly those individuals who invest directly in a small organization owned by others. They are those leaders who contribute their network of association and contribute the experience by establishing management and technical knowledge. In this, risk capitalization is also low as they reserve their right in management practices (Hochberg, Serrano and Ziedonis, 2018).

Q.2 Discuss the benefits and drawbacks of equity and debt financing.

Ans2. The benefits of equity financing-

  • Less risk: It is stated that equity financing has less risk, which can be helpful with a start-up venture.
  • Cash flow: Equity financing does not take funds and resources from outside the business as debt repayment decreases the money required to finance growth.

The drawbacks of equity financing are-

  • Loss of control- The owner has to attain the control of the company, as it required making the decisions.
  • Cost: The equity investors are expected to attain a return on their money as the amount given to the partners could be increased on debt financing.

The benefits of debt financing are-

  • Taxes- It is stated that loan interest is deductible and dividends paid are not deductible.
  • Control: It is stated that the relationship ends when debt is repaid.

The drawbacks of debt financing are-

  • Cash flow- Investors will also seek the organization as a higher risk in making an equity investment.
  • Collateral: It is stated that creditors will make a demand that specific assets of the organization are said to be collateral (Beneish, Miller and Yohn, 2015).

Q.3What would be preferred among equity financing and long-term debt in new-venture.

Ans3.Equity financing is more preferable than long-term debt financing as in debt financing it plays a major emphasis on the entrepreneur with repayment of the loan with interest (Fraser, Bhaumik and Wright, 2015).  

Q.1What is a patent. What benefits does it provide and what value to an entrepreneur?

Ans1.  The patent is government protection or right from everyone from using, copying, and selling an invention of the individual. It can benefit in justify the investment in production, design, and marketing. It gives the confidence that it would not justify the production, design, and marketing (Kiebzak, Rafert and Tucker, 2016).  

Q.2What is copyright. What benefits does this copyright provide?

Ans2. Copyright is a legal right, which is existed in several countries that grant exclusive rights to determine the original work by others. It assists in protecting the work of people and can prevent others from stealing the work to achieve the profit (Ku, 2017).

Q.3What is a trademark. Why are generic or descriptive names not given trademarks?

Significant factors in new-venture development

Ans3. A trademark is a recognizable design, which recognizes products and services of a particular source from others. It is registered for the life of the product or company, which do not need to guard against expressions becoming generic. Generic trademark is not given trademark protection because they include the words, symbols, or logo, which are very common in differentiating the product. For ex., Fruit as a trademark that cannot be given as it is very common.  Descriptive trademark is not given trademark as they also involve the logo, symbols or names, which are very common (Linford, 2015).

Q.1 Describe the new marketing concept for the entrepreneur.

Ans1. Marketing has been the major element of any entrepreneurial venture as the new marketing concept for entrepreneur involves the understanding and knowledge of marketing research, social media marketing, approach towards pricing strategy, and encouragement of a marketing plan (Zehir, Can and Karaboga, 2015).

From product…………….To Cocreated

From price…………………To Customizable

From place…………………To Choice

From promotion…………...To Communities

Q.2What is a market. How can marketing research assist an entrepreneur to recognize a market?

Ans2.A market can be defined as a place where sellers and buyers fulfill the satisfaction of the customers in delivering the goods and services is called market. Marketing research assists an entrepreneur to recognize a market by developing knowledge and experience of the process incorporated in marketing research, which can be beneficial in gathering, interpreting, and processing market information (Cai et al., 2015).

Q.3What are the five steps in the marketing research process?

Ans3. The five steps in the marketing research process involve-

  • The first step is to define the objectives, which will lay the basis for marketing research.
  • The second step is to gather secondary data.
  • Next step is to collect the primary data.
  • Then maintain the relevant data and information in a specific manner.
  • Lastly, interpret and take action to develop marketing research (Morard and Simonin, 2016).

Q.4Which of them maintains greater value primary or secondary data for the entrepreneur.

Ans4.It is stated that secondary data are of greater importance as they commonly involve the information desired, which are inexpensive (Williams and Shepherd, 2017).

Q.1 Describe the significance of financial information and key components for entrepreneurs.

Ans1.The financial information carries out the information cooperatively in all the sections of the business i.e. manufacturing, marketing, and distribution. It assembles all the historical information involving business operations. The key components involve the balance sheet, which states the financial situation of the organization. Next is the income statement as a profit & loss statement, which evaluates the success of the firm. Then the cash flow statement, which allows making investing and financial decisions (Aparicio, Urbano and Audretsch, 2016). 

Q.2 Describe the advantage of the budgeting process.

Ans2. Budgeting process permits top administration to evaluate the organization goals. This gives benefit, as they are more familiar with the resources, objectives, and strategies of the organization. Another benefit is the involvement of operating management in the process (Dudin et al., 2015).

Major sources of innovative ideas

Q.3 Explain how a cash flow budget is created.

Ans3. The cash flow budget is generated by firstly determining the cash inflows and then determined the cash outflows, which make up the cash flow budget (Glaum, Schmidt and Schnürer, 2016).

Q.1What is a Business plan?

Ans1.A business plan is a written description that discusses the expected needs & preferences, planned venture, and projected results. It will determine to invest the money efficiently, operational model, human resource management, and details needs for growth and success (Brinckmann et al., 2018).

Q.2 Describe the benefits of a business plan.

Ans2.The benefits of a business plan for an entrepreneur are-

  • It maintains its strategic focus.
  • Business planning manages cash-flow.

The benefits of a business plan for financial sources are-

  • It helps in assessing the resources and funds from investors and other sources
  • It helps in attaining grant from government (Rahimi, Møller and Hvam, 2016).

Q.3 Explain the financial statement that is significant for the business plan.

Ans3. The financial statement, which is significant for the business plan is-

  • Income statement
  • Cash-flow projection
  • Balance sheet (Karadag, 2015)

Q.1How entrepreneur vision impacts the strategic plan of the company.

Ans1. It is stated that the entrepreneurship vision must be sustained within the enterprise for personnel to understand responsibility for its development and growth. They can communicate the vision directly to the personnel, which can be shared through a shared vision in generating the future (Mårtensson and Westerberg, 2016).

Q.2How is the strategic plan of an engineer entrepreneur being different from an entrepreneur whose strength is manufacturing area?

Ans2. It is being one of the reason is they have more knowledge and experience in business and technology than the other does. This may restrict the understanding and necessities of formal planning to assist in managing future development for the enterprise (Reid et al., 2018).

Q.3.Why many entrepreneurs do not formulate a strategic plan.

Ans3. The reasons are-

  • Lack of knowledge and experience- They have less experience and knowledge of the whole management.
  • Lack of skills- They are frequently lacking in expertise and capabilities required for the strategic growth (Camuffo, Cordova and Gambardella, 2017).


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