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Chapter 1: The 21st Century Entrepreneur
Discussion Questions:
1. When did Michael Dell start his business? Dell started his business when he
2. How did he start the business? Did he require capital? Did he have a
partner? Discuss the outcome of your research. He started building and
3. Why did he grow and expand his business model? He wanted to continue to
4. Discuss how his entrepreneurial skills and knowledge assisted him to
achieve the success that his company enjoys today. Discuss why he was
(LO 1-6)
It is standard practice for new entrepreneurial business owners to learn about ethics,
why they are important, and to incorporate sound ethical business practices into their
business decisions. Go to the following website
http://www.entrepreneur.com/humanresources/employeemanagementcolumnistdavidjav
itch/article56740.html and read the article “Respecting Your Business's Ethics Policy”
and discuss the following questions:
Discussion Questions:
1. Why should new entrepreneurial owners teach their employees about business
ethics?
2. Discuss why organizational values and business ethics should be clearly defined.
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
3. Do you believe that it is a good idea for ethics to become part of the culture of a
new business? Why
Bonus Internet Exercise 1.3: Ethical Considerations for the New Entrepreneur
(LO 1-6) - Notes
Incorporating ethics is an important part of the new entrepreneurial business. Student
responses will vary.Critical Thinking Exercises
Critical Thinking Exercise 1.1: Venture Capital-backed Firms versus Entrepreneurial
Startups
(LO 1-6)
One major challenge for an entrepreneurial startup is to choose the type of firm that it
will be. For example, you learned that venture capital-backed firms include high-growth
or high-tech venture firms. In addition, the most common type of firm that entrepreneurs
consider is the new small business start-up.
Discussion Questions:
1. List the characteristics of a venture capital-backed firm and a new
entrepreneurial business start-up.
2. Summarize the key advantages and disadvantages for each business type.
3. Explain which business type you would choose for your new business. Explain
why.
Critical Thinking Exercise 1-1: Venture Capital-backed Firms versus Entrepreneurial
Startups
(LO 1-6) - Notes
Discussion Questions:
1. List the characteristics of a venture capital-backed firm and a new
entrepreneurial business start-up. Venture capital-backed firms are
IM 1-2
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
2 Summarize the key advantages and disadvantages for each business type.
3 Explain which business type you would choose for your new business.
Explain why. Student responses will vary.
Critical Thinking Exercise 1.2: Planning Goals for the New Entrepreneurial Business
(LO 1-6)
Entrepreneurs plan to assure they achieve their business objectives. New
entrepreneurs differentiate between the two different business types to assure that they
establish the appropriate organization to enhance their organizational goals. To
illustrate, consider the different planning objectives and strategies that exist between
venture capital-backed firms and entrepreneurial business start-ups and discuss the
following questions.
1. Compare and contrast the planning goals between a venture capital-backed firms
and entrepreneurial business start-up.
2. List at least three planning goals that entrepreneurs consider for a new small
business.
3. What are the advantages of a well-thought-out business plan?
4. Who should develop the business plan? Why?
5. Why is a well-designed business plan important for the new business? Who does
it help?
Critical Thinking Exercise 1.2: Planning Goals for the New Entrepreneurial Business
(LO 1-6) - 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.
Chapter 1: The 21st Century Entrepreneur
1. Compare and contrast the planning goals between a venture capital-backed
firms and entrepreneurial business start-up. The venture capital-backed firm
2. List at least three planning goals that entrepreneurs consider for a new
small business. 1. To serve as a guide in managing the business; 2. To provide
3. What are the advantages of a well-thought-out business plan? A good plan
4. Who should develop the business plan? Why? The entrepreneur should
5. Why is a well-designed business plan important for the new business? Who
does it help? A well-designed business plan serves as a guide to the owner. It
helps the owner, the investors and any funders including relatives understand the
business.
Critical Thinking Exercise 1.3: Stakeholders and the Entrepreneur
(LO 1-3)
New entrepreneurial business owners are innovative and they plan for effective and
efficient business operations. One important consideration is to determine who will be
involved with the performance of the new business. The authors in the text discussed
that stakeholders are important because they may impact the current and future
success of the business. Consider the impact that stakeholders have on the business.
Discussion Questions:
1. Define a stakeholder and summarize why stakeholders are important to a new
business owner.
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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
2. List at least ways how stakeholders impact an entrepreneurial business.
3. Why are their relationships critical to the success of the new business?
4. Who would you consider to be stakeholders for your new small business? Explain w
Critical Thinking Exercise 1.3: Stakeholders and the Entrepreneur
(LO 1-3) - Notes
1. Define a stakeholder and summarize why they are important to a new
business owner. A stakeholder is an individual or an organization that impacts
2. List at least five ways stakeholders impact the business. Suppliers are
3. Why are the relationships of stakeholders critical to the success of the new
business? A business cannot survive without suppliers since there would not be
4. Who would you consider to be stakeholders for your new small business?
Explain why. Student responses will vary.
Bonus Cases
Bonus Case 1.1: New Entrepreneurs and Unemployment Issues in the United States
(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6)
During a period around October 2009, there were reports that revealed a record number
of unemployed individuals in the United States. For example, according to a recent
News Release by the Bureau of Labor Statistics (BLS)i, “Since the start of the recession
in December 2007, the number of unemployed persons has increased by 7.6 million to
15.1 million, and the unemployment rate has doubled to 9.8 percent”. Many businesses
downsized and individuals were unemployed. As a result, there was limited job
availability and many individuals remained unemployed.
IM 1-5
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
Entrepreneurship is a popular employment alternative for many individuals in the United
States and abroad. The advantages of self-employment include, but are not limited to,
freedom, lack of corporate politics, and being one’s own boss. Potential entrepreneurs
assess their external environment to discover needs that they can accommodate with
their savvy entrepreneurial business ideas.
Typically, potential entrepreneurs have traits that are creative and innovative. They use
their intelligence to create new small businesses that fill needs in the community; and
they also enhance the economy. Individuals can establish businesses that implement
positive social change in their communities.
Discussion Questions:
1. What suggestions do you have for the United States Government and individual
citizens in the United States to resolve unemployment or underemployment in the
United States?
2. Discuss what individuals can do to decrease the unemployment rate in the
United States.
3. If you were the President of the United States, what actions would you take to
resolve the unemployment issues in the United States?
Bonus Case 1.1: New Entrepreneurs and Unemployment Issues in the United States
(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6) - Notes
Student responses will vary.
Bonus Case 1.2: Bill Gates: The Microsoft Genius
(LO 1-1)
Bill Gates is known as the Chairman of Microsoft Corporation. He started out as an
entrepreneur and grew his business into a successful corporate enterprise. Many
individuals establish their businesses because they have a hobby, pursue a specific
business venture, or want to become self employed. As a result, each individual new
entrepreneurial business has the potential to provide a business or service to satisfy
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written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
clients. Finally, entrepreneurs strive to enhance their community and implement positive
change. Some individuals might wonder if their success is based on luck or possibly
fate.
Throughout Chapter One, the authors explored who entrepreneurs are and what they
do to establish businesses as a foundation for success. In addition, they strive to
provide a product or service that is needed in the marketplace. Bill Gates successfully
implemented a product that contributed to the greater good of society. Find information
about Bill Gates and Microsoft on the web and answer the following questions.
Discussion Questions:
1. In your own words, explain why you believe Bill Gates is a successful
entrepreneur. Discuss whether or not your reasoning is based on his income or
the creative products he offers to contribute to technology.
2. Summarize how Bill Gates initiated his company. Did he have a partner?
3. List the specific contributions that his products made on our society. Explain the
reasoning behind your answers.
4. Describe the specific contributions that Bill Gates made in order to implement
positive change in society. What do you think motivates him to contribute to
society?
5. Do you believe that Bill Gates is a genius? Describe how the world might be
today without Microsoft products. Provide specific answers.
Bonus Case 1-2: Bill Gates: The Microsoft Genius
(LO 1-1) - Notes
Discussion Questions:
1. In your own words, explain why you believe Bill Gates is a successful
entrepreneur. Discuss whether or not your reasoning is based on his
income or the creative products he offers to contribute to technology.
2. Summarize how Bill Gates initiated his company. Did he have a partner?
3. List the specific contributions that their products made on our society.
Explain your reasoning behind your answers. Microsoft launched windows
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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
4. Describe the specific financial contributions that Bill Gates makes to
implement positive change in society. What do you think motivates him to
contribute to society? Gates and his wife established the William H Gates
5. Do you believe that Bill Gates is a genius? Describe how the world might
be today without Microsoft products. Provide specific answers. Gates is
(LO 1-1, 1-2, 1-3. 1-4, 1-5, 1-6)
Dr. Thomas W. Mastaglio is the President and CEO of MYMIC
LLC. MYMIC is a high technology start up specializing in
modeling, simulation and visualization solutions to support
training, military analysis, experimentation and business strategy
evaluations located in Portsmouth, Virginia. Dr. Mastaglio served
as the Executive Director of the Virginia Modeling, Analysis and
Simulation Center from November 1996 to June 2000. In that capacity he established
a consortium of industry, academia and government recruiting over 120 members and a
workforce of over 50 individuals and generated $7.5M in revenue. The Center is one of
the most successful endeavors of its kind achieving, a strong reputation both locally and
nationally.
Dr. Mastaglio is a 1969 graduate of the U.S. Military Academy. He retired from the Army
in 1991 and has worked in the defense industry as a senior engineer, program manager,
and scientist. He worked for IBM as Training Effectiveness Advocate for the Close
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written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
Combat Tactical Trainer development and as the Deputy Program Manager for
Lockheed Martin’s and Warfighter Simulation 2000. Prior to his experience in the
defense industry Dr. Mastaglio established and ran his own consulting firm from 1991 to
1993.
Dr. Mastaglio earned a Doctor of Philosophy degree from the University of Colorado in
Computer and Cognitive Science in 1990. His research interests include the application
of artificial intelligence to improving human-computer interaction and learning, usability
engineering, cognitive modeling, the development of large-scale enterprise models and
simulations, and the educational requirements for modeling and simulation. He is a
Research Professor in Electrical and Computer Engineering and an Adjunct Professor
of Psychology at Old Dominion University. He also holds an adjunct faculty appointment
in Computer Science at Norfolk State University. Dr. Mastaglio has served as a member
of the Army Science Board, a technology consultant to the Department of Defense and
member of Commonwealth of Virginia Joint Commission On Technology and Science.
He and his company, MYMIC LLC, are active in community and regional organizations
committed to technology and economic development. They are active members and
sponsors of the activities of the Hampton Roads Technology Council and have been
nominated for the Hampton Roads High Tech Emerging Company Award on three
occasions. They belong to the Emergency Management Training, Analysis and
Simulation Center, the Virginia Modeling, Analysis, and Simulation Center, and are
assisting the Hampton Roads Partnership to develop a regional strategy for Modeling
and Simulation.
Dr. Roger Smith recently asked Dr. Mastaglio if he could give business advice to a
college student and fit that advice on the back of a business card. Dr. Mastaglio
responded, “As in school, in business there are 3 “R’s” which are the key to success:
relationships, results and reputation!” (Smith 2009)ii.
1. Discuss Dr. Mastalio’s response to Dr. Smith’s question related to the advice he
could give someone on the back of a business card. What is your response to his
statement about the key to success?
2. Discuss how Dr. Mastaglio’s motivation and creativity enhanced his success.
3. Summarize how his organization contributes to society
IM 1-9
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written consent of McGraw-Hill Education.
Chapter 1: The 21st Century Entrepreneur
Bonus Case 1.3: MYMIC, LLC: A Dynamic Approach to Entrepreneurship
(LO 1-1, 1-2, 1-3, 1-4, 1-5, 1-6) - Notes
1. Discuss Dr. Mastalio’s response to Dr. Smith’s question related to the
advice he could give someone on the back of a business card. What is your
response to his statement about the key to success? Student responses will
2. Discuss how Dr. Mastaglio’s motivation and creativity enhanced his
success. Without his creativity and motivation, Dr. Mastaglio would not have
3. Summarize how his organization contributes to society. The organization’s
Endnotes
IM 1-10
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
i USAID August, 2013 :
http://www.usaid.gov/what-we-do/economic-growth-and-trade/microenterprise-development
Retrieved on September 25, 2014
ii Dr. Tom Mastaglio, President MYMIC LLC, p 241 in ADVICE written on the back of a business
card, Dr. Roger D. Smith, Modelbenders Press, 2009
