1.1 1.1 The Enterprise Process, Entrepreneurship Fundamental, Sources of Entrepreneurship Opportunities

Entrepreneurs provide the financing to individuals who think, reason, and act to convert ideas into commercial opportunities and create opportunities.

Entrepreneurs provide the financing to individuals who think, reason, and act to convert ideas into commercial opportunities and create opportunities.

False

Entrepreneurship is the process of changing ideas into commercial opportunities and creating value.

True

Small businesses, those with less than 500 employees, represent over 99 percent of all employers, and account for about one-half of the gross domestic product in the United States.

True

Small high-technology firms are responsible for twice as many product innovations per employee and obtain more patents per sales dollar than large high-technology firms.

True

Nearly half of business failures are due to economic factors such as inadequate sales, insufficient profits, and industry weakness.

True

One study of Inc. magazine’s 500 high-growth firms suggests that about 88 percent of founders feel their firms’ successes are due to extraordinary ideas, while the remaining 12 percent feel their firms’ successes are due to exceptional execution of ordinary ideas.

True

“Fads” are large societal, demographic, or technological trends or changes that are slow in forming but once in place continue for many years.

False

The so-called “baby boom” generation applies to people born in the United States during the 1946-1964 time period.

True

Environmental commerce, or e-commerce, involves the use of electronic means to conduct business online.

False

Reasonable estimates place non-employer (e.g., single person or small family) business started each year at less than 100,000.

False

Studies by Phillips and Kirchhoff, and by Headd, found that one-half of new firms or new employers were still in existence after four years of operation.

True

Successful entrepreneurs exhibit which of the following traits?

recognize and seize commercial opportunities

tend to be doggedly optimistic

About one-half of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?

4 years

“Fads” are:

-not predictable

-have short lives

-do not involve macro changes

“E-commerce” refers to:

electronic commerce

While entrepreneurial opportunities come from an almost unlimited number of sources, this textbook focuses on:

societal changes

demographic changes

technological changes

crises and bubbles

emerging economies and global changes