CH4- Entrepreneurs And SME

Question 1

Why do people start their own business?

Answer 1

Independence (being your own boss, no need to rely on others)

Greater financial success (bigger profits if successful)

Flexibility (make your own schedule)

Challenge (overcoming issues, thinking differently and growth)

Survival (to survive)

Question 2

What are the typical characteristics of an entrepreneur(+ explain)

Answer 2

Vision (new ideas and opportunities )

Self-reliance (rely on own abilities)

Energy (time consuming)

Confidence (believe in yourself)

Tolerance with uncertainty (you dont know what will happen and ur OK)

Tolerance with failure (you might fail)

Question 3

What are characteristics of a small business?

Answer 3

Less than 100people
Main source of job creation
98% of employers in CAN are small
Crucial to the economy
Source of innovation

Question 4

What is a microbusiness?

Answer 4

Less than 5 people

Question 5

What is a family business?

Answer 5

Two or more family members in management

The majority of ownership lies within the family

Question 6

What are the advantages of a small business

Answer 6

Focus on niche markets
Personalized service
Lower overhead costs
Technology

Question 7

What are the disadvantages of a small business?

Answer 7

High failure rates
Lack of knowledge and experience
Lack of financial capital
Regulatory burden

Question 8

How do you fund a small business?

Answer 8

Personal resources
Loans
Angel investor
Venture capitalist firms

Question 9

What are the basic components of a business plan?

Answer 9

Description of the business
Marketing
Competitive analysis
Operations
Financial data
Personnel

Question 10

What are the impact of a small business?

Answer 10

Creating new jobs
Fueling innovation
Creating opportunity for women