Big vs. Small Business
What is one key reason small businesses can make decisions more quickly than large businesses?
Owner is both the manager and the decision maker
Which personality test measures traits like openness, conscientiousness, agreeableness, emotional stability, and extroversion?
Big 5
Once entrepreneurs understand their own skills, what is the logical next step in developing a business idea?
Analyze the market to see where gaps exist
Friends and colleagues who provide legitimacy, advice, and feedback are examples of what type of support?
Social networks
What term describes the extra resources that allow large organizations flexibility in responding to problems?
Organizational Slack
What is the break-even point in business?
When revenue equals expenses, and the business “pays for itself”
If a deficit is high in a gap analysis, it would be ________ for the entrepreneur to overcome.
hard
Why is family often considered a key support system in new ventures?
They provide encouragement, funding, and act as a reality check
A start-up bakery tries to sell bread to a national grocery chain. The chain is hesitant. What concern do they likely have?
Uncertainty about whether the bakery can fulfill large or ongoing orders
Which personality dimension is most closely linked to being organized, dependable, and disciplined- traits that often help entrepreneurs stay on track?
Conscientiousness, from the Big Five test
What is in the 1st category of the gap analysis?
Business Idea(s)
What are community-based facilities that house small businesses and provide services such as office space and mentorship?
Incubators
Why are small businesses often quicker to adapt when customer preferences shift?
they are more flexible and can respond faster
What term explains why a business owner, who is also the manager, will act to maximize the business’s value?
Agency Theory
What is the purpose of comparing personal resources with the requirements of a business idea in gap analysis?
To identify deficits or gaps and decide if they are surmountable
What type of center, often funded by the SBA, provides free or low-cost advice and training to entrepreneurs?
Small Business Development Center
Why can Walmart sell products cheaper than many local shops?
Because big firms benefit from economies of scale (buying in volume reduces cost per unit)
Entrepreneurs differ in how long they can wait for profit. What concept measures this?
Risk Tolerance
What type of analysis is described as “gut-level” and helps entrepreneurs quickly judge whether an idea is realistic?
Gap analysis
Why should entrepreneurs seek multiple layers of support rather than relying on just one type?
No single support ensures success; multiple supports increase survival and growth chances