Stage 1 - Assessing your potential

Question 1

Name 4 principal reasons for entrepreneurial success:

Answer 1

1) Responding positively to challenges
2) Learning from mistakes
3) Taking personal initiative
4) Having great perseverance

Question 2

Example for a question. Read the following case and describe which attitudes and behaviours the entrepreneur has (There are 15 in total, name the first 5)

Answer 2

1) Commitment, Determination, and Perseverance - Probably the most critical factor to success
2) Success Orientation - An enormous desire to achieve goals
3) Opportunity and Goal Orientation - Enterparnures that start with the opportunity and let their understanding of it guide other issues such as resources, structure or strategy.
4) Action Orientation and Personal Responsibility - Produce results immediately, take initiative (Doer, not dreamer)
5) Persistent Problem-solving, Need to Achieve - The view that the impossible just takes a little longer

Question 3

Attitudes and behaviours (6-10)

Answer 3

6) Reality Orientation - Know their own strengths and weaknesses and of the competitive environment in which they operate
7) Seeking and Using Feedback - Keep score, seek feedback, get better
8) Self-reliance - Fate of a venture is related to own ability – not luck
9) Self-confidence - Failure is not a real possibility

10 Tolerance of Ambiguity and Uncertainty - The ability to make effective decisions under conditions of uncertainty.

Question 4

Attitudes and behaviours (11-15)

Answer 4

11) Taking moderated calculated risks, where it’s not a gamble but not a 100% success as well.
12) Response to failure - Treat mistakes as temporary setbacks
13) Low Need for Status and Power - Driven by a need for achievement over status
14) Integrity and reliability - Long-term personal and business relationships are built on honesty and reliability
15) Team Builder - Recognizes the challenges of building a business by working alone, but they also actively build a team

Question 5

Which 3 types of reactions do people relate to the world through?

Answer 5

1) Cognition - Mental activities (Knowledge, beliefs, opinion)
2) Affect - Emotion associated with thoughts, actions, objects

3) Behaviour - The way we respond to our environment
9habits, intentions)

Question 6

What are the three entrepreneurial archetypes:

Answer 6

1) Craftspeople
2) Freedom fighters
3) Empire builders

Question 7

Describe who are craftspeople

Answer 7

1) 70% of the small business owners
2) Derive their sense of self-worth from their mastery of a craft or trade
3) Greater focus on developing skill over the business
4) Generally work alone
Examples: Plumber, mechanic, vet, farmer etc’

Question 8

Describe who are freedom fighters

Answer 8

1) Represent about 30 percent of small businesses
2) Staff 3-50 employees (more likely to hire family)
3) Growth less than 30% per year
4) The goal is to be free to work hard and control their destiny

Example: Retailers

Question 9

Describe who are Empire Builders

Answer 9

1) Motivated by achievement
2) They usually see high growth rates (over 30% annually)
3) Over 75% have college degrees
4) Work long hours and have high expectations
5) More concerned with power than with money

Examples: Larry Rossy (Dollarama)

Question 10

What are the three External Role Demands for an entrepreneurial career?

Answer 10

1) Need for total Commitment - Almost any venture required the top priority of your time, emotions and loyalty.
2) Management of Stress
3) Economic and Personal Values - Values of the free enterprise system: Private ownership, profits, capital gains and growth.