Being an Entrepreneur
What is an entrepreneur?
Answer: Someone who takes a risk to start a business to earn profits.
A small business is defined as having fewer than how many employees?
Answer: fewer than 500
What is startup financing?
Answer: The amount of money needed to open the business.
What are two reasons people start a business?
Answer: To innovate, be independent, earn profits, turn passions into careers, flexibility with schedule
What is one of the first steps in starting a new business?
Answer: Developing an idea.
What is entrepreneurship?
Answer: The process of starting, organizing, managing, and assuming responsibility for a business.
Who usually manages a small business?
Answer: The owner
What is short-term financing?
Answer: Money needed for 30 days to 1 year of operation.
What does “innovation” mean in entrepreneurship?
Answer: Creating something brand new, such as a new product or idea.
What is a business plan?
Answer: A written description of a business idea, goals, and how it will operate.
Name two characteristics of successful entrepreneurs.
Answer: Persistent, creative, independent, goal-oriented, self-confident, reliable, or competitive.
What percentage of new jobs are created by small businesses each year?
Answer: 60–70%
What is long-term financing used for?
Answer: Resources such as land, buildings, or equipment.
Name two common reasons small businesses fail.
Answer: Lack of capital, low sales, high expenses, competition, or poor management.
Name one key section of a business plan.
Answer: Customer analysis, marketing plan, or financial plan.
Entrepreneurs must have the ability to _______ from failure.
Answer: learn
What government agency helps small businesses?
Answer: The Small Business Administration (SBA)
List two common sources of startup funding.
Answer: Personal savings, friends and family, or venture capital investors
What does “improvement” mean in entrepreneurship? What is an example of a business that exists from improving upon another business's product?
Answer: Making an existing product or service more useful, efficient, or appealing.
What is included in a marketing plan section of a business plan?
Answer: Major marketing activities, resources needed, and a schedule of activities.
How did Sam Walton's idea for Walmart meet a specific customer need?
Answer: He saw a gap in the market — customers in smaller communities needed affordable goods close to home, so Walmart offered low prices and convenient local access that built loyal customers.
Name two types of businesses often started as small businesses.
Answer: Construction, retail, tech services, health care, hotels/restaurants, or real estate
What is venture capital?
Answer: Money provided by large investors to finance new businesses.
A new business struggles because the owner can’t manage its growth. What type of risk is this?
Answer: A management challenge risk
Why is preparation and research important before starting a business?
Answer: It helps reduce risk and improve decision-making by understanding the market and resources needed.