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Chapter 1: The 21st Century Entrepreneur
Review Questions – p. 17
1. How do entrepreneurial businesses impact the economy?
2. Name several entrepreneurs who have grown their businesses into
major organizations.
Henry Ford (Ford Motor), Steve Jobs ( Apple Computer), Ron Brilland and Pat
3. Explain what is meant by the science and the art of starting and
managing a business.
4. How have entrepreneurial businesses impacted the growth of the United
States?
5. Why does the entrepreneur need to be honest about their motivation for
starting the company?
6. What differentiates an entrepreneurial business from one that is a
venture-backed business?
Venture-backed businesses include the following: are well-funded; formed
IM 1-1
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
Individual Exercises – p. 17
Student responses will vary.
Class Activities and Sample Assignments
1. Ask students to discuss why individuals want to be entrepreneurs. What motivations
are mentioned in the text? Discuss other reasons why individuals pursue
entrepreneurship. Next, ask students if they want to become entrepreneurs. Discuss
why or why not. Write their responses on a flip chart or blackboard. (LO 1-3)
2. Ask students to interview an entrepreneurial business owner in their community. The
interview questions should detail what motivated that individual to start the business,
how many employees work at the business, and a description of the stakeholders.
Include questions on the best and worst thing about owning the business and if they
would do it again. Next, ask students to prepare a report on the outcome of the
interview and/or present their findings to the class. (LO 1-1, 1-2, 1-3, 1-4, 1-5, 1-6)
3. In groups, ask students to discuss why more than half of new entrepreneurial
businesses fail within the first four years of operation. Then, ask them what they
would change to assure that more entrepreneurial businesses survive longer than
four years. Discuss a restaurant business, an automotive manufacturing business,
online business and a retail business. (LO 1-1)
4. In groups, brainstorm and develop a list of all possible new entrepreneurial
opportunities that might be popular in the year 2020; and write them on the board or
a flip chart. Discuss each potential business opportunity and why it is important in
the future business environment. (LO 1-1)
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
5. Ask students to compare and contrast the difference in business plans for
entrepreneurial businesses and venture capital-backed firms. Discuss why business
plan development is important for these new ventures in the planning process. (LO
1-6)
6. When were the first entrepreneurial businesses established? Discuss the differences
in new entrepreneurial businesses compared to today’s entrepreneurial businesses.
Include differences in technology, values, and the purposes of the businesses. (LO
1-2)
7. In groups, ask students to define economies of scale. Discuss the advantages and
disadvantage of economies of scale in small and large businesses. Which firms are
likely to operate more efficiently and why? (LO 1-1)
Discussion Questions for Online/Hybrid classes
1. Define economies of scale and discuss why they are important in both large and
small industries? (LO 1-1)
2. If you choose to become an entrepreneur, which business opportunity would you
pursue and why? (LO 1-1)
3. Discuss the advantages and disadvantages associated with entrepreneurial
business ownership. (LO 1-3)
4. Define a stakeholder and discuss the individuals and groups that qualify as
stakeholders. (LO 1-3)
5. In reference to the timeline of business in the United States, why was the period
of the Great Depression harder on smaller business than on larger businesses?
(LO 1-2)
6. What does the government do to enhance the success of SMEs? Why? (LO
1-5)
7. Discuss the characteristics of an entrepreneurial business start-up. Why are
entrepreneurial businesses important in the United States and abroad? (LO
1-6)
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
8. Describe the differences between entrepreneurial businesses and venture
capital-backed firms. (LO 1-6)
9. What do new entrepreneurs plan prior to the establishment of their new small
business? (LO 1-6)
10.What is a harvest plan? Why is it important to consider a harvest plan? (LO 1-6)
Discussion Questions for Online/Hybrid classes- Responses
1. Define economies of scale and discuss why they are important in both
large and small industries? (LO 1-1) Economies of scale allows for the
2. If you choose to become an entrepreneur, which business opportunity
would you pursue and why? (LO 1-1) Responses will vary.
3. Discuss the advantages and disadvantages associated with entrepreneurial
business ownership. (LO 1-3) Advantages - being your own boss, controlling
4. Define a stakeholder and discuss the individuals and groups that qualify as
stakeholders. (LO 1-3) Stakeholders are individuals or other organizations that
5. In reference to the timeline of business in the United States, why was the
period of the Great Depression harder on smaller business than on larger
businesses? (LO 1-2) Small businesses did not have the resources of larger
6. What does the government do to enhance the success of SMEs? Why?
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
7. Why are entrepreneurial businesses important in the United States and
abroad? (LO 1-5) Small businesses are more focused, respond more quickly
8. Discuss the characteristics of an entrepreneurial business start-up. (LO l-6)
9. Describe the differences between entrepreneurial businesses and venture
capital-backed firms.(LO 1-6) Venture-backed firms are well funded, are formed
10.What do new entrepreneurs plan prior to the establishment of their new
small business? (LO 1-6) New entrepreneurs should develop a business plan
11. What is a harvest plan? Why is it important to consider a harvest plan?
Lecture Links
Lecture Link 1.1: Entrepreneurs and New Small Business Planning Goals.
(LO 1-6)
The authors of the text emphasize that the three initial goals for new entrepreneurial
business owners are to guide the new business in its early stages of development, have
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
those goals in writing, and reflect how the business will be financed and managed and
how it will maintain its competitive advantage.
The Counselors to America’s Small Business i web site provides individuals information
to assist individuals with their small business needs. Visit this web site at
http://www.score.org and click on the “start-up” tab and preview free business
information, related business links, entrepreneurial newsletters, and other learning
resources and articles. Consider these resources when you implement the initial plans
for your new small business development.
Now it is time to start planning for your new entrepreneurial business.
1. What type of new entrepreneurial business do you want to pursue? Why?
2. Describe the products and/or services will you offer in your new entrepreneurial
business?
3. List your goals for this new business.
4. Discuss how will you finance your initial operations?
5. Discuss who will be involved in your new business.
6. Compare your intended products and/or services to those of your competitors. How will
you assure your new business maintains a competitive advantage?
7. Discuss how your new business will implement positive change in your community?
Lecture Link 1.2: The Advantages of the Small Business Administration (SBA)
(LO 1-1)
The Small Business Administration (SBA)ii provides a new small business owner with
many tools and resources to enhance the owner’s business planning and development,
as well as other tools to enhance the organizational effectiveness of the new small
business. Visit the web site at www.sba.gov/ and click on the “local assistance tab”.
Here you can find a Small Business Administration (SBA) office near where you reside.
Review the tools that you might find important for you to consider when you initiate your
new small business.
Discussion Questions:
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
1. Discuss the various services that the Small Business Administration (SBA) can
provide to business owners. Summarize how those services can assist in starting
a new entrepreneurial business venture.
2. Ask students to find the local office of the Small Business Administration (SBA)
where they reside. What beneficial services could the SBA provide? Why?
3. What are the steps required to open an entrepreneurial business? What other
important details should be considered?
4. Discuss what type of assistance is needed to enhance the start-up initiatives of a
new business?
Lecture Link 1.2: The Advantages of the Small Business Administration (SBA)
(LO 1-1) - Notes
Discussion Questions:
1. Discuss the various services that the Small Business Administration (SBA)
provides to business owners. Summarize how those services can assist
you in your new entrepreneurial business venture.
2. Ask students to find the local office of the Small Business Administration
(SBA) where they reside. What services would be beneficial to a new
business? Why? Responses will vary.
3. What are the steps required to open an entrepreneurial business? What
other important details should you consider? According to the SBA website,
4. Discuss what type of assistance you need to enhance your new business
start-up initiatives? Responses will vary but may include professional help,
family help and funding.
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
Discussion Questions:
1. Explain how the Overseas Private Investment Corporation (OPIC) enhances the
growth and development of new small businesses in the United States and abroad.
2. Summarize the advantages and disadvantages associated with implementing such
programs.
3. Discuss the challenges that entrepreneurs experience in other countries versus the
United States.
4. Discuss the common goals associated for entrepreneurs worldwide.
Lecture Link 1.3: Entrepreneurial Business around the World
(LO 1-5) - Notes
Discussion Questions:
1. Explain how the Overseas Private Investment Corporation (OPIC) enhances
the growth and development of new small businesses in the United States
2. Summarize the advantages and disadvantages associated with
implementing such programs? The purpose of these programs is to reduce
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
3. Discuss the challenges that entrepreneurs experience in other countries
versus the United States. These entrepreneurs often cannot obtain credit to
4. Discuss the common goals associated for entrepreneurs worldwide. The
5. Bonus Internet Exercises
Bonus Internet Exercise 1.1: Decline in Employees at Fortune 500 Companies
(LO 1-1, 1-5)
In Chapter One, the students were provided an overview of the decline in employees at
Fortune 500 companies; and a growth in entrepreneurial businesses, respectively (text
page 4). Bamford and Bruton (2014) stated, “Whereas corporate America has been
downsizing, the rate of small-business start-ups has grown.” (text page 4). Conduct
research and identify some Fortune 500 companies on the internet and complete the
following activities with detailed responses.
Discussion Questions:
1. Locate and list at least five Fortune 500 companies. (Make a note of their stock
symbol for question three and question four.
2. For each of these five companies, research and list the number of employees
that are employed at each firm.
3. Complete additional research and list the number of employees in those
companies for the past ten years. Refer to question one to note the stock symbol
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
at each firm. (Hint: Statistical data is found, in many cases, by visiting
yahoo.com, click on finance, and next insert the stock tickler symbol for the
company as instructed. Next, click on statistical or historical data to reveal the
data needed to answer this question).
4. Discuss the world-wide trends associated with the reduction in the workforce at
each Fortune 500 company and describe how that reduction relates to the growth
in new small businesses in the United States.
Bonus Internet Exercise 1.1: Decline in Employees at Fortune 500 Companies- Notes
(LO 1-1, 1-5) - Notes
Student responses will vary based on which companies they select.Bonus Internet
Exercise 1.2: Entrepreneurial Success Story of Dell Computer
(LO 1-3)
Ask students to conduct research on the internet related to Michael Dell (Dell
Computers) and do specific research about the company from the time it was
established until now.
Discussion Questions:
1. When did Michael Dell start his business?
2. How did he start the business? Did he require capital? Did he have a partner?
Discuss the outcome of your research.
3. Why did he grow and expand his business model?
4. Discuss how his entrepreneurial skills and knowledge assisted him to achieve the
success that his company enjoys today. Discuss why he was successful.
Bonus Internet Exercise 1.2: Entrepreneurial Success Story of Dell Computer
(LO 1-3) - Notes
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Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
iCounselor’s to America’s Small Business. (2014). http://www.score.org/, Retrieved on
September 25, 2014.
ii Small Business Administration (SBA). (2014), www.sba.gov, Retrieved on September 25,
2014
