Chapter 2
Review Questions
1. Discuss some of the underpinning traits held by entrepreneurs.
2. Consider the main attributes of the entrepreneur given by the three main economic
theorists of the entrepreneurial tradition, are they applicable today?
3. Are entrepreneurs homogeneous in terms of their types and motivations? Discuss.
4. To what extent is entrepreneurship a new phenomenon?
5. Why do entrepreneurs decide to undertake the risk of going it alone?
6. To what extent has academia resolved questions surrounding entrepreneurship?
Review Answers
1. Good answers are expected to highlight some of the enduring human attributes that
are attributed to the entrepreneurs in sections 2.2 and 2.3 that are said to lead some people
and not others to choose entrepreneurship. Answers should discuss the extent
entrepreneurs who exhibit such traits are more likely to exploit opportunities, as well as
take into account that no two are the same.
2. Answers should discuss the key economic theories of entrepreneurship introduced in
section 2.2 and focus in on the three main economists, Schumpeter, Kirzner and Knight,
all of whom influenced the way we view the entrepreneurs today.
3. Answers for this should be stimulated by section 2.3 that suggests entrepreneurial
decision making is more a matter of reducing uncertainty than it is about personality or
‘innate’ abilities. Which is why drawing an accurate picture of the individual
entrepreneur is almost impossible and instead the most important issue here appears to be
the fit between the process and other key elements of entrepreneurship.
4. Answers here should be drawing heavily on both sections 2.2 and 2.3 that discusses
the origins of entrepreneurship. Answers should acknowledge that the phenomenon of
entrepreneurship is indeed not new and while the fundamental tools may have changed
the ability has been present in every civilisation. Answers must include exemplars.
5. Answers should be drawing heavily on the discussion in section 2.4 incorporating
elements of motivation and the push and pull of entrepreneurship. Why do individuals
choose to enter into such risky endeavours? Answers should also the general concept of
“risk” in 2.2 as well as a detailed discussion of how a typical entrepreneur is characterised
by their ability to take calculated risks.
6. This answer incorporates everything in section 2.5 and should include a discussion of
what recent studies have pointed to – the heterogeneity of research in this field, and to the
lack of adequate explanations of how entrepreneurship actually occurs. While
acknowledging the work that has been done, answers should state that current theory is
underdeveloped and that, crucially, the study of process is now at the epicenter of the
debate.
Chapter 3
Review Questions
1. Consider De Bono’s six thinking hats, what practical applications does it have?
2. Consider two theoretical views of creativity, and outline the elements of each.
3. How does innovation impact upon markets?
4. To what extent is luck a factor in becoming a successful entrepreneur?
5. What factors influence the discovery or creation of opportunities?
6. Describe and discuss in detail the stages of creative problem solving.
Review Answers
1. Good answers should discuss de Bono’s Six Thinking Hats in section 3.1. Answers
should discuss the steps and processes in depth to show how teams generate
knowledge and awareness of a certain problem area, and also encourages them to
learn more about the problem as a team, as well as assisting them in researching
possible solutions and incubating their ideas in moments of reflection by asking
questions at each stage.
2. Answers should effectively present the two views in 3.1 expressed by Feldman on the
elite and developmental views. They must discuss the elements of both view and
consider examples to illustrate answers.
3. Answers here should be focused on section 3.2 on the discussions of innovation by
Christensen (1997): disruptive innovations and sustaining innovations. Answers
should detail both views as well as draw on other exemplars such as Schumpeter’s
(1934) types of innovation to add depth.
4. Answers here should focus on section 3.3 on how opportunities emerge. Answers
should discuss the elements of the planned and unplanned approach as well as discuss
in detail that it is not just a question of being in the right place at the right time but a
question of recognizing a good opportunity and having the skills to convert that
opportunity into a thriving business.
5. Answers here should be focused on section 3.4 and should be aimed at discussing
how entrepreneurs in the creation or discovery of opportunities implies a match
between the market on the one hand, and the knowledge, skills and competencies of
the entrepreneur on the other (figure 7).
6. A good answer should be focused on the discussion in section 3.5 note that the
process is iterative and each stage is interlinked to the next, like the entrepreneurial
process the creative process relies on revision and new insights. Those who hope to
make it happen must revisit and revise the original idea.
Chapter 4
Review Questions
1. Explain why it is important to understand diversity in entrepreneurship.
2. Discuss how the key challenges for ethnic minority entrepreneurs could be overcome.
3. Discuss how the key challenges for women entrepreneurs could be overcome.
4. Aside from ethnic minority and women entrepreneurs, which other groups of diverse
entrepreneurs are you now aware of? Can you think of any others?
5. What do you think are the biggest challenges that affect multiple groups of diverse
entrepreneurs?
6. What are the push and pull factors for grey entrepreneurs entering self-employment?
Review Answers
1. Understanding diversity in entrepreneurship is important to:
▪ Better understand the heterogeneity in entrepreneurship
▪ To understand what the motivations and challenges for entrepreneurs are
▪ To help identify and break down the barriers for entrepreneurs
2. Suggestions for ethnic minority entrepreneurs might include:
▪ Provision of financial support
▪ Provision of business advice
▪ Access to business courses
▪ Training and support for use of technology
▪ Access to language courses
3. Suggestions for women entrepreneurs might include:
▪ Provision of financial support
▪ Provision of mentoring services and business advice
▪ Access to formal business networks
▪ A cultural shift away from women’s role within the family and home
4. The other groups of diverse entrepreneurs mentioned in this text are: grey, LGBT,
disabled and graduate entrepreneurs. Other groups could be ‘mumpreneurs’ (mum–
entrepreneurs), ‘teenpreneurs’ (teenage entrepreneurs) / ‘youthpreneurs’ (youth
entrepreneurs), academic entrepreneurs, or others.
5. The biggest challenges that have arisen across multiple groups of diverse entrepreneurs
are:
▪ Access to finance or start-up capital
▪ Lack of education or skills and knowledge gaps
▪ Adapting to the role of technology in business
6. Push and pull factors for grey entrepreneurs entering self-employment;
Push factors for grey entrepreneurs
▪ Accommodation of medical conditions,
▪ loss of employment
▪ lack of quality jobs
Pull factors for grey entrepreneurs
▪ Strong asset base /financial security
▪ Control of working hours
▪ Control of level of responsibility assumed
▪ Vast high quality networks
Chapter 5
Review Questions
1. How do entrepreneurs differ from social entrepreneurs?
2. What are the differences between social enterprise and social entrepreneurship?
3. What are the differences between corporate social responsibility and social
entrepreneurship?
4. Discuss the two different schools of thought on social entrepreneurship.
5. Who are Rafael Alvarez, Alvaro Rodriguez Arregui Ignia and Richard Barth? What
have they done and what social impact have they made?
6. Analyse and explain why social capital is important to enhancing our understanding
of social entrepreneurship.
Review Answers
1. The differences between entrepreneurs and social entrepreneurs
Entrepreneurs are typically driven to enhance their personal wealth.
Entrepreneurs do not give primacy to social mission.
Social entrepreneurs do not seek to grow their personal wealth through a venture.
The success of social entrepreneurship is measured in terms of social impact.
Social entrepreneurs do not have harvest or exit strategies.
2. The differences between social enterprise and social entrepreneurship
Social enterprises are a particular type of venture within the third sector, whereas social
entrepreneurship can exist in any sector of the economy.
Not all social enterprises are entrepreneurial; many may be small ventures without growth
aspirations or potential.
Social enterprises must derive a minimum of 25% of their income from trading (50%
according to some theorists) whereas social entrepreneurs need 100% of income from trading
according to the earned income school of thought, or can be entirely reliant on grants and
donations without any earned income according to the social innovation school of thought.
3. The differences between CSR and SE
Social mission is paramount to social entrepreneurship, as it is a strategic choice for the
majority of managed organisations. SE entails primacy of social mission.
The success of social entrepreneurship is measured according to social value creation,
whereas the CSR can be measured across a variety of attributes, many of which are non–
social value related (creating of awareness, strengthening of brand and return on investment).
4. There are two schools of thought on social entrepreneurship
Social Innovation
Earned income
Both accept the primacy of social mission in their theoretical framework and also accept
social value creation as the fulfilment of social mission; however, the latter school insist that
only SEs with organisations self-sufficient from 100% earned income quality are social
entrepreneurs. According to this definition all social businesses are socially entrepreneurial.
The addition of this criterion excludes the founder of One World Health, Victoria Hale, from
being classified as a SE.
The key flaw with the earned income theory, and hence the strength of the social innovation
school of thought, is that it is logically unsound, as it is quite possible that a social business is
not entrepreneurial, and secondly that the theory fails to explain organisations like One World
Health.
5. Who are Rafael Alvarez, Alvaro Rodriguez Arregui Ignia and Richard Barth? What have
they done and what social impact have they made?
Rafael Alvarez Genesys Works: Genesys teaches low-income high school juniors basic IT
skills, like installing and troubleshooting software, then places them in paid internships,
hoping they’ll land steady jobs after graduation. As a bonus Genesys grads are far more likely
to go to college than their peers.
Alvaro Rodríguez Arregui Ignia: This “impact venture capital fund” invests in companies that
work to assist the millions of Mexicans who lack decent housing, health care and clean water.
Portfolio companies include MeXvi, which helps people build their own homes, private water
supplier Agua Natural and Finestrella, a company that helps folks without credit cards get
cell phones.
Richard Barth: It’s a simple idea, but it works: Keep kids in school longer and they learn
more. Students in the 109 KIPP (Knowledge Is Power Program) schools across the country
attend class from 7:30 a.m. to 5 p.m. (two and a half hours more than most other kids), plus
every other Saturday and for three additional weeks in the summer. Last year 98% of KIPP
eighth graders outperformed their peers in reading and 90% were better in math. Gap
founders Doris and Donald Fisher were early backers.
6. Analyse and explain why social capital is important to enhancing our understanding of
social entrepreneurship.
Social capital explains how communities develop and are enhanced by SE at the societal
rather than individual level. Research has shown that high rates of SC are indicative of
healthy, vibrant communities and demonstrate a strong sense of trust and municipality,
greater educational and health outcomes. Social capital is both a valuable precursor and
output of SE.
Chapter 6
Review Questions
1. Discuss the dimensions through which environmental turbulence has created the need for
corporate entrepreneurship.
2. What is corporate entrepreneurship?
3. What are the differences between start-up entrepreneurship and corporate
entrepreneurship?
4. Explain the four schools of thought on corporate entrepreneurship.
5. What are corporate entrepreneurship outcomes?
6. Discuss the variables that are vital for designing work environments that support a
corporation’s entrepreneurial strategy.
Review Answers
1. Four dimensions through which environmental turbulence has created a need for
corporate entrepreneurship:
a) Through customers – fragmented markets, increasing customer expectations, higher
cost of customisation, etc.
b) Through competitors – increased expenditure in product development, difficult to
differentiate, increased competition, etc.
c) Through technology – new information, service delivery, customer management,
logistics, inventory, sales force management and product development technologies.
d) Through legal, regulatory and ethical standards – increased accountability, visibility
