ENT 2113 EXAM 1 STUDY GUIDE
ENTREPRENUIAL PATH - Answers :high tech / high growth
small & medium sized enterprises
family businesses
corporate entreprenuership
HIGH TECH / HIGH GROWTH - Answers :leading edge or new application of
technology
high research and development (coding, analysis, problem solving)
money upfront
low production cost, high margin
ease of scalability
SMALL & MEDIUM SIZED ENTERPRISES - Answers :main street not wall street
already deployed technology/business model
varying production costs (higher overhead, lower margin)
more physical & human resources
difficult to scale (low growth)
FAMILY BUSINESSES - Answers :usually multi-generational
not the same as small businesses
limitless business models
varying production costs, varying margins
scalability may be hampered by family issues
"family office"
CORPORATE ENTREPRENUERSHIP - Answers :organization-centric
large organizations becoming sluggish
not all can/will adopt innovation
NEC - manufactured technology, grew fast and became slow
FRANCHISES - Answers :replication of an existing business model
resources / revenue sharing
guidance and direction from franchisor
capital and execution from franchisee
corporate america - Answers :downsizing
rate of startups - Answers :increased
rate of small business failures - Answers :declined
success of entrepreneurial businesses - Answers :more focused than corporate
counterparts
no burden of policies, procedures, corporate layers of management
, manager of a large firm has no personal capital at risk
large firms = economies of scale - Answers :ability to operate more efficiently than a
smaller business
what leads to growth? - Answers :ability of entrepreneurs to respond more quickly and
operate more effectively
aspects of success in a small business - Answers :effective sales generation model
(generate consistent sales)
sustainable operating profit margins
being properly financed
history of entrepreneurship (1880s) - Answers :development of nation's industrial base
(robber barons)
history of entrepreneurship (1930s) - Answers :great depression, harder on smaller
businesses
history of entrepreneurship (1970-80s) - Answers :economic turmoil due to globalization
entrepreneurship - Answers :backbone of economic success in the US
catalyst for societal change (understanding of local communities, provide jobs and
means to meet demands of the public)
largest single group of new business founders - Answers :women (glass ceiling, work-
life balance)
small enterprises - Answers :strongest factor in any nations GNP - big impact
advantages of larger business - Answers :economies of scale
can produce more products / services for a cheaper price
advantages of smaller business - Answers :fill niches that larger firms cannot fill
owned and run by the same person
agency theory - Answers :individuals act to maximize their own individual benefit;
business makes money, owner makes money
risk tolerance - Answers :The degree, amount, or volume of risk that an organization or
individual will withstand. (should not spend more than personal risk tolerance);
background, values, family situation
prior experience - Answers :boundaries for decision-making will come from experiences,
history, culture and family values
ENTREPRENUIAL PATH - Answers :high tech / high growth
small & medium sized enterprises
family businesses
corporate entreprenuership
HIGH TECH / HIGH GROWTH - Answers :leading edge or new application of
technology
high research and development (coding, analysis, problem solving)
money upfront
low production cost, high margin
ease of scalability
SMALL & MEDIUM SIZED ENTERPRISES - Answers :main street not wall street
already deployed technology/business model
varying production costs (higher overhead, lower margin)
more physical & human resources
difficult to scale (low growth)
FAMILY BUSINESSES - Answers :usually multi-generational
not the same as small businesses
limitless business models
varying production costs, varying margins
scalability may be hampered by family issues
"family office"
CORPORATE ENTREPRENUERSHIP - Answers :organization-centric
large organizations becoming sluggish
not all can/will adopt innovation
NEC - manufactured technology, grew fast and became slow
FRANCHISES - Answers :replication of an existing business model
resources / revenue sharing
guidance and direction from franchisor
capital and execution from franchisee
corporate america - Answers :downsizing
rate of startups - Answers :increased
rate of small business failures - Answers :declined
success of entrepreneurial businesses - Answers :more focused than corporate
counterparts
no burden of policies, procedures, corporate layers of management
, manager of a large firm has no personal capital at risk
large firms = economies of scale - Answers :ability to operate more efficiently than a
smaller business
what leads to growth? - Answers :ability of entrepreneurs to respond more quickly and
operate more effectively
aspects of success in a small business - Answers :effective sales generation model
(generate consistent sales)
sustainable operating profit margins
being properly financed
history of entrepreneurship (1880s) - Answers :development of nation's industrial base
(robber barons)
history of entrepreneurship (1930s) - Answers :great depression, harder on smaller
businesses
history of entrepreneurship (1970-80s) - Answers :economic turmoil due to globalization
entrepreneurship - Answers :backbone of economic success in the US
catalyst for societal change (understanding of local communities, provide jobs and
means to meet demands of the public)
largest single group of new business founders - Answers :women (glass ceiling, work-
life balance)
small enterprises - Answers :strongest factor in any nations GNP - big impact
advantages of larger business - Answers :economies of scale
can produce more products / services for a cheaper price
advantages of smaller business - Answers :fill niches that larger firms cannot fill
owned and run by the same person
agency theory - Answers :individuals act to maximize their own individual benefit;
business makes money, owner makes money
risk tolerance - Answers :The degree, amount, or volume of risk that an organization or
individual will withstand. (should not spend more than personal risk tolerance);
background, values, family situation
prior experience - Answers :boundaries for decision-making will come from experiences,
history, culture and family values
