Week 1 (Chapter 1)

Question 1

Myths about entrepreneurship

Answer 1

1. Entrepreneurs are born, not made
2. Entrepreneurs are gamblers
3. Entrepreneurs are motivated primarily. by money
4. Entrepreneurs should be young and energetic
5. Entrepreneurs love the spotlight
6. Gender (Male>Female)

Question 2

Creative destruction

Answer 2

Entrepreneurs develop products and technologies that are typically. better than those they. replace and the availability of improved products and technologies increases consumer demand, creative destruction stimulates economic activity.

Question 3

Entrepreneurship

Answer 3

An activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, processes, and raw materials through organizing efforts that previously did not exist.

Question 4

Entrepreneurship as an innovation proces

Answer 4

Entrepreneurship is creating and building something of value from practically nothing. That is, entrepreneurship is the proces of creating or seizing an opportunity and pursuing it regardless of resources presently controlled.

Question 5

Types of start-up firms

Answer 5

1. Salary-Substitute firms
2. Lifestyle firms
3. Entrepreneurial firms

Question 6

Salary-substitute firms

Answer 6

Firms that basically provide their owner or owners a similar level of income to what they would be able to earn in a conventional job

Question 7

Lifestyle firms

Answer 7

Firms that provide their owner or owners the opportunity to pursue a particular lifestyle, and make aa living at it

Question 8

Entrepreneurial firms

Answer 8

Firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control