Convenience

152
Part 2:
Planning
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DISCUSSION QUESTIONS
Questions for Review
1.
Describe the similarities and differences between
entrepreneurial firms and large firms in terms of
their job creation and innovation.
2.
What characteristics make an industry attractive to
entrepreneurs? Based on these characteristics, which
industries are most attractive to entrepreneurs?
3.
Describe recent trends in new business start-ups.
4.
What are the different sources of advice for entre-
preneurs? What type of information would an
entrepreneur be likely to get from each source?
What are the drawbacks or limitations for each
source?
5.
What are the basic reasons small businesses suc-
ceed and what are the basic reasons they fail?
Questions for Analysis
1.
Entrepreneurs and small businesses play a variety
of important roles in society. If these roles are so
important, do you think that the government
should do more to encourage the development of
small business? Why or why not?
2.
Consider the four major reasons for new business
failure. What actions can entrepreneurs take to
minimize or avoid each cause of failure?
3.
The U.S. automotive industry is well established,
with several large and many small competitors.
Describe the unexploited niches in the U.S. auto
industry and tell how entrepreneurs could offer
products that fill those niches.
4.
List five entrepreneur-owned businesses in your
community. In which industry does each business
compete? Based on the industry, how do you rate
each business’s long-term chances for success?
Explain your answers.
5.
Using the information about managing a small
business presented in this chapter, analyze whether
you would like to work in a small business—either
as an employee or as a founder. Given your
personality, background, and experience, does
working in or starting a new business appeal to
you? What are the reasons for your opinion?
BUILDING EFFECTIVE DIAGNOSTIC SKILLS