S02 - Entrepreneurship & The Profile of Entrepreneurs Fichier Flashcards
What is the primary motivation for social entrepreneurs compared to traditional entrepreneurs?
A. Maximizing profits through market expansion
B. Solving societal challenges through innovative strategies
C. Securing venture capital for technology projects
D. Outperforming competitors in their industry
What is the primary motivation for social entrepreneurs compared to traditional entrepreneurs?
Answer: B. Solving societal challenges through innovative strategies
Which of the following would NOT be considered a form of necessity-driven entrepreneurship?
A. Launching a small retail business after losing a corporate job
B. Developing an app due to inspiration from market trends
C. Operating a food truck to avoid unemployment
D. Starting a sewing business to support household expenses
Which of the following would NOT be considered a form of necessity-driven entrepreneurship?
Answer: B. Developing an app due to inspiration from market trends
Which skill is most critical for an innovative entrepreneur aiming to disrupt an industry?
A. Risk aversion
B. Extensive technical expertise
C. Ability to adapt to change and implement visionary ideas
D. Proficiency in accounting and financial reporting
Which skill is most critical for an innovative entrepreneur aiming to disrupt an industry?
Answer: C. Ability to adapt to change and implement visionary ideas
How does intrapreneurship primarily differ from traditional entrepreneurship?
A. Intrapreneurship has less financial risk but offers more creative freedom.
B. Traditional entrepreneurship depends entirely on external funding.
C. Intrapreneurship operates within existing organizations with shared resources.
D. Traditional entrepreneurship focuses solely on social impact.
How does intrapreneurship primarily differ from traditional entrepreneurship?
Answer: C. Intrapreneurship operates within existing organizations with shared resources
What key characteristic differentiates opportunity-driven entrepreneurship from necessity-driven entrepreneurship?
A. The absence of personal financial risk
B. A focus on short-term survival strategies
C. The deliberate pursuit of innovations or systematic searches for new ventures
D. Reliance on government subsidies for starting the business
What key characteristic differentiates opportunity-driven entrepreneurship from necessity-driven entrepreneurship?
Answer: C. The deliberate pursuit of innovations or systematic searches for new ventures
Which of the following strategies is LEAST likely to encourage intrapreneurship within a company?
A. Allocating specific hours for employees’ personal projects
B. Offering monetary rewards for innovative proposals
C. Enforcing rigid hierarchical structures for decision-making
D. Spinning off successful internal projects into standalone ventures
Which of the following strategies is LEAST likely to encourage intrapreneurship within a company?
Answer: C. Enforcing rigid hierarchical structures for decision-making
What is a significant challenge that imitator entrepreneurs face compared to other types of entrepreneurs?
A. Building a market for a completely new product
B. Gaining a competitive edge in markets with established players
C. Creating a balance between profit-making and social impact
D. Sustaining a business during economic downturns
What is a significant challenge that imitator entrepreneurs face compared to other types of entrepreneurs?
Answer: B. Gaining a competitive edge in markets with established players
Graph-Based Analysis
The following graph shows the entrepreneurial activity rate by necessity and opportunity across three regions.
(Imagine a bar graph with the following data for necessity-driven entrepreneurship rates: Region A = 30%, Region B = 20%, Region C = 10%. For opportunity-driven rates: Region A = 15%, Region B = 40%, Region C = 60%.)
Question:
Based on the data:
Which region is most likely to have a higher prevalence of innovative startups, and why?
Discuss how regional economic factors might explain the differences in entrepreneurial activity.
Region C is most likely to have a higher prevalence of innovative startups because opportunity-driven entrepreneurship rates are the highest (60%). Opportunity-driven entrepreneurship is often associated with innovation, as individuals deliberately pursue unique solutions and leverage market trends.
Economic Factors: The lower necessity-driven rate in Region C suggests a stable economy with less unemployment, allowing individuals to focus on opportunity-driven ventures. Conversely, Region A has high necessity-driven rates (30%), indicating a more challenging economic environment where individuals may start businesses for survival rather than innovation.
Scenario-Based
Imagine a company where intrapreneurship is encouraged, and an employee has successfully pitched a project idea to streamline manufacturing processes, saving $1 million annually. The company is now considering whether to spin off this project as an independent startup or retain it internally.
Question:
What factors should the company consider in making this decision? Discuss the potential risks and benefits of both approaches.
Factors to consider:
Benefits of spinning off:
* Allows the project to develop independently with dedicated resources.
*Can attract external funding and grow faster as a standalone entity.
Benefits of retaining internally:
* Maintains control over intellectual property.
* The company can integrate cost savings directly into its operations.
Recommendation:
If the project aligns with the company’s core strategy, retain it. Otherwise, spin it off to focus on external growth.
Case Study with Hypothetical Data
A survey of 1,000 entrepreneurs in a country reveals the following:
* 70% cite funding as their primary challenge.
* 50% identify the lack of skilled employees as a major hurdle.
* 30% struggle with adapting to new technologies.
Question:
If you were the government of this country, which initiatives would you prioritize to enhance the entrepreneurial ecosystem, and why? Support your answer with a strategy that addresses all three challenges.
Government initiatives:
- Address funding challenges: Create government-backed loan programs or tax incentives to ease funding access.
- Upskill the workforce: Offer training programs to develop the skills entrepreneurs need in technology and management.
- Promote technology adoption: Subsidize digital transformation initiatives for startups to help them stay competitive.
Hypothetical Market Trend Analysis
A scalable tech startup focuses on electric vehicle (EV) software. The market is projected to grow at 20% annually. However, the company is operating at a loss while capturing only 5% of the market share.
Question:
What entrepreneurial strategies should the founder adopt to achieve sustainable growth and profitability within the next five years? Evaluate options like seeking venture capital, pivoting the business model, or scaling down operations.
Strategies:
- Seek venture capital to scale operations and increase market share quickly.
- Focus on niche markets within the EV space to gain competitive differentiation.
- Optimize operations to reduce costs and improve profitability.
- Leverage partnerships with larger EV companies to enhance visibility and adoption.
The company should prioritize growth while maintaining operational efficiency to transition from loss-making to profitability.
Data-Driven Decision-Making
A region’s entrepreneurial survey reveals the following statistics:
1. Businesses with less than 10 employees have a 60% survival rate over five years.
2. Businesses started by necessity-driven entrepreneurs have a 40% survival rate over the same period.
3. Opportunity-driven businesses have a 70% survival rate.
Question:
Using this data, analyze the correlation between business size, type of entrepreneurship, and survival rates. Recommend which type of entrepreneurship policy should be encouraged to maximize long-term economic growth.
Correlation analysis:
- Opportunity-driven entrepreneurship has the highest survival rate (70%), indicating that these businesses are often more sustainable.
- Small businesses with fewer than 10 employees have a reasonable survival rate (60%), suggesting they adapt better to market changes.
- Necessity-driven businesses show the lowest survival rate (40%), often due to short-term motivations or lack of resources.
Recommendation:
Policies should focus on fostering opportunity-driven entrepreneurship, as these ventures contribute to long-term economic growth and stability.
Creative Scenario: Social Entrepreneurship
Imagine a social entrepreneur is working on providing clean drinking water to remote villages. Their project is funded by a mix of government grants (40%), private donations (30%), and revenue from selling water purification kits (30%). Recently, a funding cut from the government jeopardizes their operations.
Question:
What steps should the entrepreneur take to ensure the project’s sustainability? Evaluate strategies such as diversifying revenue streams, expanding private sector partnerships, or altering the business model.
Steps for sustainability:
- Diversify revenue streams: Expand the sale of water purification kits to urban markets or introduce subscription models for clean water services.
- Seek partnerships: Collaborate with private sector firms, NGOs, or international organizations for additional funding.
- Innovate: Explore cost-effective production methods or alternative funding models like crowdfunding.
Hypothetical Entrepreneurial Profiles
Two hypothetical profiles are given:
Emma: A planner-focused entrepreneur, meticulous with market research and product development but slow in execution.
Liam: A visionary artist entrepreneur, highly creative but lacking attention to detail in operations.
Question:
For a rapidly evolving tech market, which entrepreneur profile is better suited, and how should they address their shortcomings to maximize their potential?
- Better suited profile: Liam, the visionary artist entrepreneur, is more suited for the rapidly evolving tech market, where creativity and adaptability are critical.
- Addressing shortcomings: Liam should collaborate with a planner-focused co-founder or hire operational experts to compensate for his lack of attention to detail. Emma could thrive in a more stable market requiring detailed execution but would struggle to match the pace of innovation in tech.
