Small Businesses and entrepreneurship

Question 1

What is an entrepreneur?

Answer 1

An individual who starts and operates a business, taking on financial risks in the hope of making a profit for an innovative ideas,

Question 2

What is entrepreneurship?

Answer 2

Is a process of creating and managing a business to achieve a desired objective

Question 3

What is micro entrepreneur

Answer 3

is an individual who operates a very small business, typically with fewer than 10 employees,

Question 4

What is a social entrepreneur?

Answer 4

Is someone who establishes a business or organization with the primary goal of addressing a social or environmental problem while also generating financial returns with the aim to create positive social impact through their ventures.

Question 5

What is a small business?

Answer 5

An independently owned or operated business that is not dominant in its competitive area with not more than 50 people employed

Question 6

Which industries attract small businesses

Answer 6

Retailers
Non-store retailers
Manufacturer
Wholesalers
Service providers

Question 7

What is the retailer

Answer 7

A businesses or individuals that sell goods or services directly to consumers. Retailers purchase products from wholesalers or manufacturers and then sell them to consumers at a markup, aiming to make a profit.

Question 8

What a non-store retailers

Answer 8

A businesses that sell goods or services to consumers without the need for a physical storefront utilising alternative methods of selling, such as online platforms,

Question 9

What’s the difference between direct market and direct selling?

Answer 9

Direct Marketing:
involves promoting and selling products or services directly to consumers without intermediaries such as retailers.

Direct Selling:
refers to the process of selling products or services directly to consumers outside of a traditional retail environment.

Question 10

What are wholesalers

Answer 10

Wholesalers are intermediaries in the distribution channel who purchase goods in bulk from manufacturers or producers and sell them in smaller quantities to retailers or other businesses.

Question 11

What a service providers

Answer 11

businesses or individuals that offer intangible services to customers instead of tangible goods. These services can include a wide range of offerings, such as consulting, healthcare, education, financial services, hospitality, transportation, entertainment, and more.

Question 12

What are manufacture

Answer 12

are companies or entities that produce tangible goods or products from raw materials or components. They are responsible for the design, production, and assembly of goods, and can allow customisation.

Question 13

What is sharing economy?

Answer 13

Where individuals or businesses share resources, assets, or services directly with each other,

Question 14

What is gig economy?

Answer 14

where individuals work as independent contractors or freelancers for various clients or companies, often on a project-by-project basis.

Question 15

List successful traits of young entrepreneurs

Answer 15

Productive - being able to produce a large amount of product during a given time
Resourceful - understanding how to use and spend resources wisely
Charismatic - having the ability to inspire other behind a central vision
Innovative - being able to come up with new and creative ideas
Risk taker - having the ability to pursue risky endeavours despite the possibility of failure
Persistent - continuing a certain action in spite of obstacles
Friendly - being able to have mutually beneficial interaction with people

Question 16

Give 4 advantages of a small business

Answer 16

Independence
Cost less money to start and maintain than a large one
Flexible decision-making is easier and can be executed quickly
Can specialize in niche markets or specific customer segments
Reputation can develop for quality goods and service

Question 17

Give 4 disadvantages of a small business

Answer 17

Business owners undergo high stress levels from competition, employee problems and expanding inventory
Lack of capital to operate a business normally
Poor management as an individual might not have extensive knowledge or experience to manage a growing business
Growth requires the owner to give up of direct authority
4

Question 18

What challenges are face in starting a new business?

Answer 18

Not having enough start up capital
Not understanding your competitive niche
Lack of effective utilisation of social media and marketing
Lack of business plan
Poor site location
Pricing mistake may be too high or low
Not finding complimentary partners to bring additional experience
Not hiring the right employees or training them properly
Not understanding legal and ethical responsibilities

Question 19

What is a business plan?

Answer 19

a comprehensive document that outlines the goals, strategies, operations, and financial projections of a business venture. It serves as a roadmap for entrepreneurs, guiding them through the process of starting, managing, and growing their businesses effectively.

Question 20

What is equity financing?

Answer 20

is a method of raising capital for a business by selling ownership shares or equity stakes to investors in exchange for funds.

Question 21

What is venture capitalist?

Answer 21

Is a professional investor or investment firm that provides funding to startup companies and small businesses with high growth potential in exchange for equity ownership or ownership stakes in the company.

Question 22

What is debt financing?

Answer 22

Refers to the practice of borrowing funds from external sources, such as banks, financial institutions, or bondholders, with the promise of repaying the borrowed amount plus interest over a specified period with collateral put down.

Question 23

What is line of credit?

Answer 23

is a borrowing arrangement that allows individuals or businesses to access funds up to a predetermined credit limit providing ongoing access to funds that can be borrowed as needed not as a lump sum

Question 24

What is the trade credit?

Answer 24

refers to the practice of buying goods or services from suppliers on credit, allowing the purchaser to defer payment for a specified period after the goods or services are received.

Question 25

What is downsizing / right sizing?

Answer 25

a strategic business practice that involves reducing the size of a company’s workforce or operations to improve efficiency, reduce costs, or adapt to changes in the business environment.

Question 26

What is an intrapreneur

Answer 26

an employee within a company who behaves like an entrepreneur, taking initiative to develop and implement new ideas, products, or processes within the organisation