chapter 7

Question 1

what is entrepreneurship?

Answer 1

accepting the challenge of starting and running a business

Question 2

what does to entreprendre mean?

Answer 2

to undertake, to start a business

Question 3

how many people in Canada are self employed?

Answer 3

2.7 million

Question 4

how are small businesses different than entrepreneurship?

Answer 4

entrepreneurship does not intent to stay small but small businesses do.

Question 5

how does entrepreneurship differ from small businesses (4 ways)

Answer 5

1. Amount of wealth creation
2. Speed of wealth creation
3. Risk
4. Innovation

Question 6

what are some Canadian entrepreneurs?

Answer 6

Wallace & Harrison McCain
• Billes brothers
• Ablan Leon
• Jean Coutu & Louis Michaud
• J. W. Sobey
• Christine Magee

Question 7

why do people take the entrepenruoal challenge?

Answer 7

challenge, new idea, process or product, independence, family pattern, profit, immigrants

Question 8

what does it take to be an entrepreneur?

Answer 8

Self-directed : a self-starter, with a lot of confidence in yourself.
• Determined :believe in your idea even when no one else does.
• Action-Oriented
• Highly Energetic
• Tolerant of Uncertainty
• Able to Learn Quickly: Making errors is inevitable. What is important is what you learn from them.

Question 9

how many women in Canada are self employed and what percent of Canada do they account for?

Answer 9

950,000 and 36%

Question 10

who is heather reisman?

Answer 10

Chief Executive Officer of Indigo.

Question 11

who is Kristen chapman?

Answer 11

president

Question 12

what is an entrepreneurial team?

Answer 12

A group of experienced people from different areas of business who join together to form a managerial team with skills needed to develop, make & market a new product.

Question 13

what are micro enterprises?

Answer 13

small businesses that have fewer than 5 employees

Question 14

what do micropreneurs own?

Answer 14

home based businesses (people trying to combine career and family)

Question 15

why is there a growth to home based businesses?

Answer 15

computer technology, corporate downsizing & change in social attitudes

Question 16

who do online small businesses compete with?

Answer 16

other small businesses, large web-based & brick-and- mortar businesses.

Question 17

what are some home based business challenges?

Answer 17

Getting New Customers
• Managing Time
• Keeping Work & Family Tasks Separate
• Abiding by City Ordinances(Rules)
• Managing Risk

Question 18

what are some examples of home based businesses?

Answer 18

catering services, cleaning services, pet products and services, ecommerce,

Question 19

what are intrapreneuers?

Answer 19

Creative people who work as entrepreneurs within corporations.

Question 20

why do intrapeneurs exist?

Answer 20

company’s existing resources— human, financial & physical—to launch new products & generate new profits.

Question 21

what are incubators?

Answer 21

an organization that helps startup companies and individual entrepreneurs to develop their businesses by providing services starting with management training and office space to capital financing

Question 22

who can use incubators to help them?

Answer 22

Entrepreneurs & new start-ups

Question 23

what are the 3 parts of business establishment?

Answer 23

Has at least one paid employee
• Annual sales revenue of $30,000, or is incorporated
• Has filed a federal corporate income tax return at least once in the previous three years.

Question 24

how are small businesses owned and managed compared to large ones?

Answer 24

small businesses= Canadian-owned & managed.

large buisnesses= foreign owned and managed

Question 25

what are some reasons that small businesses can fail?

Answer 25

• no experience
• starting with too much or too little capital
• underpricing and overpricing g and s
• borrowing money without planning how to pay it back
• underestimating how much time it will take to build a market

Question 26

what are the five steps to getting into your first business venture?

Answer 26

1. Start your own company.
2. Buy an existing business.
3. Buy a franchise unit
4. Inherit/take over a family business
5. Get Some Experience
   – Many small-business owners get idea from prior jobs.

Question 27

what are the functions in a small business setting?

Answer 27

– planning your business
– financing your business
– knowing your customers (marketing)
– managing your employees (human resource development)
– keeping records (accounting).

Question 28

what is a business plan?

Answer 28

A detailed written statement that describes the nature of business, target market, advantages business will have in relation to competition, & resources & qualifications of owner(s).

Question 29

what does a business plan force potential owners of small businesses to do?

Answer 29

to be quite specific about g & s they intend to offer.

Question 30

does it take a long time to make a business plan?

Answer 30

yes

Question 31

what should a business plan include?

Answer 31

Cover Letter
• Executive Summary
• Company Background
• Management Team
• Financial Plan

Question 32

how to get money to fund a small business?

Answer 32

• supplier credit
• personal savings
• personal credit cards
• retained earnings
• business credit cards

Question 33

what is angel investment?

Answer 33

private individuals who invest money & then go public

Question 34

what is crowdfunding?

Answer 34

raising funds through the collection of small contributions from general public