Entrepreneurship Ch 1 Entrepreneurs Recognize Opportunities

Entrepreneurship, Ch. 1 - Entrepreneurs Recognize Opportunities

Homework questions - Ch. 1

1) What is an entrepreneur and what are differences between products and services?

2) How is small business defined?

3) What is an economy? Why is a free enterprise system/ capitalism necessary for entrepreneurs to thrive? How is socialism different?

4) Name 3 benefits and 3 costs of being an entrepreneur.

5) What is opportunity cost and cost/benefit analysis?

6) What is social entrepreneurship?

7) Why is every idea not necessarily a viable option for a startup business?

8) What are Schumpeter\'s 5 ways to find opportunities for new businesses?

9) What is necessary for a business to survive in the long-run?

10) Explain what is meant by \"The Entrepreneurial Myth,\" the \"Entrepreneurial Seizure\" and the \"Fatal Assumption.\"

11) Explain the 3 roles that a successful entrepreneur must take on to succeed.

Solution

Common people require many things in their day to day life to carry out the smooth functioning of their daily activities. For example, the need of pressure cooker to cook food, air conditioners to maintain the room temperature, transport facility, and hair dressing.

The process of finding the needs and wants of the common public i.e. the problems faced by the common public and providing them a solution for the same is called as entrepreneurship.

Since, entrepreneurship is the process of finding opportunities (problems) giving their solutions, an entrepreneur must carefully decide what to produce (products or services) and how much to produce by conducting an appropriate market study so as to minimise the losses and maximize the profits. The following are the key characteristics of an entrepreneur:

Entrepreneurship involves various pros and cons with it.

Pros:

Cons:

The following are the difference b/w products and services:

Note: As per chegg policy only one question can be answered at one time.