ENTREPRENEURSHIP & INNOVATION MIDTERM QUESTIONS WITH CORRECT ANSWERS

Definition of entrepreneurship CORRECT ANSWER Destroy the existing the economic order by introducing new products and services, new methods of production, new forms of organization, or by exploiting new raw materials. An entrepreneurial leader is... CORRECT ANSWER An innovator who recognizes and seizes upon opportunities; develops and executes strategies to capitalize on marketable ideas; and creates employment and wealth for themselves and their communities. An entrepreneurial mindset is not just for entrepreneurs... CORRECT ANSWER Must include a variety of stakeholders that are willing to support and cooperate with dynamic efforts. Non-entrepreneurs with entrepreneurial mindsets... CORRECT ANSWER May indirectly influence / stimulate others to start businesses. Indicates the value of broader societal acceptance of entrepreneurship. Emerging economies are embracing entrepreneurship as a key economic development tool CORRECT ANSWER - Most prevalent reasons for business discontinuance in North America: CORRECT ANSWER 1. Personal reasons 2. Business not profitable 3. Another job or business opportunity Small Businesses CORRECT ANSWER Small businesses employed about 1/2 of nation's private workforce Why is entrepreneurship so important? CORRECT ANSWER 1. Primary source of new jobs in the economy 2. Driving force in the economy 3. Outstanding source of innovation 4. Is the essence of the "American Dream" 5. Creates wealth -- advances society ** empowers individuals to pursue their professional career dreams ** Entrepreneurial Mindset CORRECT ANSWER Important for entrepreneurs themselves and policy makers -- but also for members of society