Chapter Seven Aida Moua
Small Businesses and Entrepreneurship: Economic Rocket Fuel
1. Review the benefits an entrepreneur might seek in starting a new business. Which benefits are most appealing to you? Why? Some benefits that are most appealing to me is having greater financial success, independence, flexibility, and challenge because with all of them combined, it’s beneficial to me and can help me gain more money easier.
2. Do you recognize any of the entrepreneurial personality characteristics in yourselves? Which ones? Do you think it’s possible for a person to develop the characteristics that he or she lacks? Why or why not? Yes, I have some qualities of entrepreneurial personality characterics that are self-reliance, having confidence in myself, energy, and tolerance of failure. It is possible for a person to develop those skills if they are devoted to changing their personality and are dedicated to learning the new skills.
3. What role does failure sometimes play in entrepreneurial success? What can an entrepreneur gain from failure? They see it as a chance to learn and gain from their failures to become better in the future.
4. How could you convince family and friends to support your new business launch? What kind of assurances would they need? What could you do to keep the funding relationships professional?
I would convince my family and friends to support my new business launch by proving to them that I know what I’m doing and have enough experience to launch it. I could provide them with facts and experience to reassure them and I could create goals for me to reach to keep the funding relationships professional and create a business plan for them to see.
5. Beyond personal resources, what are other funding options for small businesses? Why don’t more entrepreneurs tap into these resources? There are many other funding options such as bank loans, angel investors, and venture capital firms. Entrepreneurs don’t tap into those resources because it causes more stress for them and they constantly have to worry about paying them back with/without interest and in the long run, they may lose more money and they would just prefer personal resources.
6. Compare the opportunities and threats that small businesses face. Which opportunities are most compelling? Which threats are most intimidating? Why? Some opportunities are the market niches, personal customer service and lower overhead costs but some threats are a high risk of failure, lack of knowledge and experience as well as having too little of money. Opportunity that compelling is personal customer service because with it small business owner can build personal relationship with a customer. Another opportunity that is compelling is lower overhead costs because no one wants to spend huge amount of money and wants to spend as less as possible. The biggest threat that is intimidating is high risk of failure. When someone starts a business, he or she wants to succeed and not to fail. People are scared of losing even if they are tolerant to failure. Those that tolerant to failure don’t give easily up like others do.
7. Review the definition of niche marketer, and cite three examples of niche marketers. How has technology affected niche marketing? Market niche is a small segment of a market with fewer competitors than the market as a whole and tend to be more attractive to small firms. Three examples of niche marketers are organic cosmetics, Google, and E-Bay. Technology plays very important role today, because internet helped people to open new businesses and at the same time create more customers. It is good for businesses because they spend less money and grow faster.
8. If you were to launch a new business, would you start from scratch, buy an established independent business, or buy a franchise? Why? I would buy a franchise such as Starbucks because I know there are many people out there...
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