DISCUSSION QUESTIONS AND ANSWERS
1. What is the entrepreneurial process?
The entrepreneurial process comprises: developing opportunities, gathering resources, and managing and building operations with the goal of creating value.
2. What is entrepreneurship? What are some basic characteristics of entrepreneurs?
Entrepreneurship is the process of changing ideas into commercial opportunities and creating value. While there is no prototypical entrepreneur, many are good at recognizing commercial opportunities, tend to be optimistic, and envision a plan for the future.
3. Why do businesses close or cease operating? What are the primary reasons why businesses fail?
Nearly one-half of businesses that fail do so because of economic factors including inadequate sales, insufficient profits, and industry weakness. Many of the economic factors are directly tied to financing concerns (e.g., insufficient profits for investors). Almost 40 percent of business failures not citing economic factors cite specifically financial causes like excessive debt and insufficient financial capital. The remaining cited reasons for failure include a lack of business and managerial experience, business conflicts, family problems, fraud, and disasters. Many businesses close and fail due to financial trouble which is mostly related to lack of sales and unsatisfactory profits.
4. What are three megatrend sources or categories for finding entrepreneurial opportunities?
They are: (1) societal changes, (2) demographic changes, and (3) technological changes
5. What asset and financial bubbles have occurred recently? How can bubbles and financial crises lead to entrepreneurial opportunities?
The “dot.com” or Internet bubble burst in 2000. An economic recession that began in 2001 was exacerbated by the 9/11 terrorist attack. The housing asset bubble, fueled by sub-prime mortgages offered to borrowers who could not afford them, burst in 2006. By the second half of...