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Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
Bonus Internet Exercise 2.3: Personality and the Entrepreneu
The authors in the text emphasized that individuals who are outgoing are considered to
be extroverted. Those individuals who have limited interpersonal interactions are said to
be introverted. Potential entrepreneurs that are extroverted will thrive in a business that
has extensive interpersonal interactions. By comparison, potential entrepreneurs that
are introverted will thrive in a business that has limited interpersonal interactions.
Conduct research on the internet to discover a business owner that is extroverted. Next,
conduct research to discover a business owner that is introverted.
Discussion Questions:
1. What two businesses did you research? Who are the owners?
2. Discuss the type of business or industry that each business owner performs
work.
3. Does an extroverted business owner work well in an industry that has extensive
interactions with people? Does an extroverted business owner work well in an
industry that has limited interactions with people? Discuss the outcome of your
research.
4. Do you believe that an individual’s personality type has an impact on the
individual’s business? Explain your belief.
Bonus Internet Exercise 2.3: Personality and the Entrepreneur
(LO 2-3) - Notes
Student responses will vary depending on the business selected. Some choices may
include Bill Gates, Mark Zuckenburg, Steve Jobs, Michael Dell.
Critical Thinking Exercises
Critical Thinking Exercise 2.1: The Elements of Entrepreneurial Orientation
(LO 2-2)
As you learned in the text, the three elements of entrepreneurial orientation include risk
tolerance, prior experience, and personality orientation of the individual. Entrepreneurs
must analyze these elements and make sound business decisions based on the
outcome of their assessments.
IM 2-1
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written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
Summarize your individual personal traits for each of the three elements. Be specific
and include an assessment of your break-even point, your bounded rationality, and
include the personality test that you focused on to analyze your individual personality.
1. Risk tolerance:
2. Prior experience:
3. Personality orientation:
4. Break-even point analysis:
5. Bounded rationality:
6. Personality test choice
Critical Thinking Exercise 2.1: The Elements of Entrepreneurial Orientation
(LO 2-2) – Notes
1. Risk Tolerance: Risk tolerance is the amount of risk an entrepreneur is willing to
NOTE: Answers will vary based on the student’s personal risk tolerance.
2. Prior Experience: Students define and discuss bounded rationality as the
NOTE: Answers will vary based on the student’s prior business experience.
3. Personality Orientation of the Individual: This is self-examination of one’s own
NOTE: Answers will vary based on the student’s prior business experience.
4. Brek-even Point Analysis: The time when a new business has reached a level
5. Bounded Rationality: Rational discussion-making that is constrained by the
NOTE: Answers will vary based on the student’s prior business experience.
6. Personality Test Choice: Examination of your own personality.
IM 2-2
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
Critical Thinking Exercise 2.2: The Two Categories of Triggers
(LO 2-3)
As we learned in this chapter, triggers can encourage the formation of new business
ventures. They are a result of positive and negative stimuli that encourage an individual
or group to initiate a new business.
Discussion Questions:
1. Provide specific examples of triggers that encourage the formation of new business
ventures.
2. List the two categories of triggers and provide specific examples of each.
3. Which trigger is considered the strongest motivator? Why? Be specific.
4. Discuss which motivator results in defense positioning and explain why.
Critical Thinking Exercise 2.2: The Two Categories of Triggers
(LO 2-3) - Notes
1. Provide specific examples of triggers that encourage the formation of new
small business ventures. Examples of triggers include having lost employment;
2. List the two categories of triggers and provide specific examples of each.
IM 2-3
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
3. Which triggers are considered the strongest motivations? Personal
4. Discuss which motivations result in defense positioning and explain why.
5. Critical Thinking Exercise 2.3: Business Assessment
(LO 2-5)
As you learned in the text, entrepreneurs are expected to experience increased success
if they enjoy their businesses. Consider your likes and dislikes as they relate to
business and entrepreneurship.
Business Assessment
Business Type Likes Dislikes
Discussion Questions:
1. Summarize the businesses that you listed in the assessment. Why did you
choose these businesses? Be specific.
2. Discuss the business type that you like. What do you like about these
businesses? Be specific.
3. Discuss the business type that you dislike. What do you dislike about these
businesses? Be specific.
4. Evaluate the businesses that you like. How likely are you to establish this type of
business?
Critical Thinking Exercise 2.3: Business Assessment
(LO 2-5) - Notes
IM 2-4
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
The answers will vary. The purpose of this exercise is for students to examine what they
like or dislike about a specific business type. Students will evaluate a potential business
and discuss whether or not they would open that business.
Bonus Cases
Bonus Case 2.1: The Current State of the Entrepreneur
(LO 2-1, 2-2, 2-3, 2-4, 2-5, 2-6)
Many individuals implement new businesses for a variety of reasons. There are many
details to consider on the quest to entrepreneurship. One of most critical issues that an
entrepreneur must consider is where they will obtain financing for their new business.
Existing Financial Resources
(assets)
Existing Financial
Obligations (debt)
New Business
Needs
Potential
Resources
The purpose of this analysis is to review your existing financial resources (assets),
evaluate your existing financial obligations (debts), list what you believe you might need
to start the new business, and list all of your supports that might help you achieve your
entrepreneurial goals.
For the purpose of this exercise, your assets are considered as your cash, savings
accounts, certificates of deposit, IRA's, 401K's, stocks, bonds, and the available equity
in your home.
Your debt is considered all of your obligations and monthly bills. In the existing financial
obligation section, list your monthly expenses, rent or mortgage, your monthly utility
IM 2-5
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
bills, installment loans, revolving debt (monthly credit card payments), child support,
alimony, and all other outstanding debt.
In the New Business need section, list all of the items that you believe you need for your
new business and estimate the accumulated cost.
In the Resource section, list all of the potential resources that you can think of that might
help you fund your new business.
Discussion Questions:
1. Add the assets column and list the results.
2. Add the total amount of debt that you pay each month and
list the results.
3. List all the material items you believe are required to initiate
your new business.
4. Next, list all the support resource that you can utilize for your
new business need.
5. Summarize the results of your analysis. Do your assets
exceed your debts? Discuss whether or not you have the funds required to initiate
your new business? If not, list your support resources and discuss how they will
assist you with your new business goals.
Bonus Case 2.2: Lifesaver Realtor and Entrepreneurial Leadership
(LO 2-3)
Laurie Wagner
Entrepreneurs assess and evaluate the characteristics of their personality to gain
specific information related to their likes and dislikes about potential business
opportunities. Frequently, the results of certain analysis indicate the industry or the type
of business that an individual can excel in as an entrepreneur.
Another significant characteristic for a potential entrepreneur to evaluate is their
leadership skills. You want to open a new business. However, have you ever been a
leader? What are the characteristics of a leader? Effective leadership skills enhance the
new business owner’s values; and they enhance an entrepreneur’s ability to be a
leader. Entrepreneurs develop leadership skills to assure they are positive role models
in the communities they serve.
IM 2-6
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
One example of an entrepreneur who has effective leadership skills is Laurie Wagner.
Ms. Wagner was a real estate agent in Virginia Beach, Virginia, licensed with Rose and
Womble Realty. In addition, she was considered a leader in her community. In an
interview, Ms. Wagner was asked what the most important leadership characteristics an
entrepreneur needs to develop. She replied “honesty first…even when nobody is
looking”, “perseverance”, “listening to others”, and “leading by example”.i
1. Describe the leadership traits that an entrepreneur needs in order to
achieve success in a new business ventures. List at least five personality
characteristics and explain why each is important to a new business owner.
2. Explain why entrepreneurs need to develop leadership skills. List at least
three reasons and explain why they are important to a new business owner.
3. Do you believe that all entrepreneurs are leaders? Do you believe that
entrepreneurs are born as leaders or do they acquire those skills
4. Discuss how potential entrepreneurs who lack leadership skills can gain
those skills to assure they become effective leaders. Explain your answer.
5. Compare your skills to the characteristics of a leader in your community.
What changes, if any, do you need to implement to assure you are an
effective and efficient leader?
Bonus Case 2-2: Lifesaver Realtor and Entrepreneurial Leadership
(LO 2-3) - Notes
1. Describe the leadership traits that an entrepreneur needs in order to
achieve success in a new business venture. List at least five
characteristics and explain why each is important to a new business
2. Explain why entrepreneurs need to develop leadership skills. List at least
five reasons and explain why they are important to a new business owner.
3. Do you believe that all entrepreneurs are leaders? Do you believe that
entrepreneurs are born as leaders or do they acquire those skills? Student’s
4. Discuss how potential entrepreneurs who lack leadership skills can gain
those skills so that they become effective leaders. Explain your answer.
5. Compare your skills to the characteristics and skills of a leader in your
community. What changes, if any, do you need to implement to assure you
IM 2-7
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Ch. 2: Individual Leadership and Entrepreneurial Start-Ups
are an effective and efficient leader? Student responses will vary depending
6. Bonus Case 2.3: Paint a Pretty Picture: One Individual’s Approach to
Entrepreneurship
(LO 2-4)
The quest to entrepreneurship can be a long process for some individuals. Other
individuals seem to achieve success overnight. One important concept that
entrepreneurs need to consider is that they must enjoy their work.
For example, Barbara Lively Mastaglio is a business woman, an artist, a mother, and a
wife. (Personal Interview by Lisa Johnson, 2009). She owns a summer home on
Valentia Island in Ireland; and when she is not working abroad at her cottage on the
island she resides in Norfolk, Virginia. When asked what she attributes to her success
as an entrepreneur she asserted “I paint pretty pictures.” In addition, she credits her
success on “hard work”, “dedication”, and “my number one goal is to have a lot of fun.”
1. Explain why it is important for entrepreneurs to enjoy their work. Be specific.
2. How will you assure that you paint pretty pictures with your new business
venture?
3. Discuss your new business venture and why you anticipate that you will
thoroughly enjoy it.
Bonus Case 2.3: Paint a Pretty Picture: One Individual’s Approach to Entrepreneurship
(LO 2-4) - Notes
1. Explain why it is important for entrepreneurs to enjoy their work. Be
2. How will you assure that you paint pretty pictures with your new business
3. Discuss your new business venture and why you anticipate that you will
thoroughly enjoy it. Student responses will vary.
Endnotes
IM 2-8
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
i Wagner, Laurie. (2009). Laurie Wagner, Realtor. Rose and Womble Realty 2009. http://www.roseandwomble.com/Agent/Laurie%20Wagner/
Retrieved on October 14, 2009.
