Entrepreneurship

Question 1

What is a entrepreneur?

Answer 1

People who risk their time, money, and other resources to start and manage a business.

Question 2

What are some of the reasons that people become
entrepreneurs?

Answer 2

1- Being your own boss
* 2- Financial Success
* 3- Job Security
* 4- Quality of life

Question 3

Types of entrepreneurship?

Answer 3

1. Local
   - Self employed
   - Franchises
   - Local service industry
2. Global
   - Innovative
   - Elon Musk
   - Opera Winfrey
   - Jeff Bezos

Question 4

what is a mini entrepreneur?

Answer 4

– individuals launching super small scale enterprises. Include microbusiness, freelancers, side
businesses, weekend
entrepreneurs, hobbypreneurs,
Web-driven entrepreneurs, free
agents and more..

Question 5

Starting a business from scratch pros?

Answer 5

The choice of target market, product quality and selection,
location, suppliers, operating
structure, marketing and general
concept is up to you.
* You don’t have to deal with the
prior owner’s bad decisions
* i.e. location, employees,
reputation, etc.

Question 6

Starting a business from scratch cons ?

Answer 6

There are a lot of decisions to
make, which can mean a lot of
pressure and can be timeconsuming.
* It can be hard to get credit for a
business that is not proven.
* Logistics can be challenging
* i.e. arranging suppliers, hiring
employees, etc.
* It can take a significant amount of
time to build a reputation and a
clientele and for the business to
become profitable.

Question 7

buying an establish business pros?

Answer 7

The concept, organizational structure,
marketing and operating practices are
in place.
* Relationships with suppliers are
established.
* Experienced employees are available.
* Clientele is established and
company’s reputation is made.
* Financing may be easier to obtain due
to proven track record.

Question 8

buying an establish business cons?

Answer 8

• Working with someone else’s idea
  may not be as rewarding.
• You are obliged to keep the existing
  employees.
• You inherit the reputation, clientele,
  products, etc. which may not be what
  you want.
• The purchase price may be difficult to
  negotiate and more expensive than
  starting on your own.

Question 9

what is the franchisee and franchisor relationship?

Answer 9

• The franchisee signs a contract to use the brand
  name, trademark and operating formula of the
  franchisor and usually must follow strict operating
  standards
• The franchisor offers support such as training,
  marketing and other services
• The franchisee must pay a franchise fee as well as
  royalties, marketing and other fees normally based on a
  % of sales to the franchisor

Question 10

Buying a franchise pros?

Answer 10

• Partnering with established brand;
  existing reputation and customer
  base as well as promotional
  support
• Start-up is easier (assistance with
  location, set-up, equipment
  selection, negotiated prices with
  suppliers, existing operating
  procedures)
• Training and ongoing operational
  management coaching
• Access to financing
• Less risk; lower failure rate due to
  above points

Question 11

Buying a franchise cons?

Answer 11

• Less opportunity for creativity;
  need to follow standard
  procedures and subject to
  constant evaluation of
  performance
• Tied to national brand’s mistakes
  and decisions
• Purchase price (franchise fee)
  and on-going royalties, marketing
  fees and other fees can be high
  and reduce profitability