chapter 02 the entrepreneurial mind: crafting a...

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Chapter 02The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy

True / False Questions

1. (p. 41) Since entrepreneurs are internally motivated, high-energy people with a passion for discovery and innovation, they are distinct from seasoned business managers with the skill to scale the enterprise. FALSE

Difficulty: EasyType: Knowledge

2. (p. 43) After years of research, it is now possible to take a number of people, give them a specialized test, and determine those in the group that do and do not possess entrepreneurial minds. FALSE


3. (p. 43) Behavioral scientists, venture capitalists, investors, and entrepreneurs believe that the eventual success of a new venture is largely dependent upon the talent and behavior of the lead entrepreneur and of his or her team. TRUE


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4. (p. 44) A study of 118 entrepreneurs revealed that those who moved quickly and were profit-oriented were much more likely to excel in business than those who were planners. FALSE

Difficulty: HardType: Knowledge

5. (p. 44) One predictable research finding was that driven, successful entrepreneurs are generally not patient individuals. FALSE


6. (p. 45) While certain individuals possess such inborn characteristics as energy and raw intelligence, these characteristics do not necessarily mean that they will succeed as entrepreneurs. TRUE


7. (p. 48) Almost without exception, entrepreneurs live under huge, constant pressures until their firms have survived the startup phase; after that, it typically gets easier. FALSE

Difficulty: ModerateType: Knowledge

8. (p. 48) Founders should compete with peers in the company as a way of fostering team cohesion and spirit. FALSE


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9. (p. 49) In the face of tasks that are deemed unsolvable, entrepreneurs will actually give up sooner than others do. TRUE


10. (p. 51) Successful entrepreneurs possess a well-developed capacity to exert influence without formal power. TRUE


11. (p. 51) Successful entrepreneurs often exhibit a strong need to control, influence, and maintain power as the lead entrepreneur. FALSE


12. (p. 53) Rather than willingly put themselves in situations where they are personally responsible for the success or failure of the operation, the best entrepreneurs find ways to distribute risk among the various stakeholders and constituents. FALSE


13. (p. 54) The need to possess an objective way of keeping score, such as changes in profits, sales, or stock price, often makes money the primary motivator for driven entrepreneurs. FALSE


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14. (p. 56) Evidence suggests that the most durable entrepreneurial careers, those found to last 25 years or more, were begun at an earlier age before the person had made any substantial commitments to a specific career path. FALSE


15. (p. 59) Entrepreneurs work longer and harder than managers in big companies. FALSE


16. (p. 59) The average age of entrepreneurs starting high-potential businesses is in the mid-40s. FALSE


Multiple Choice Questions

17. (p. 42) When Marion Labs founder Ewing Marion Kauffman sent his financial officer back to Germany to re-negotiate a supplier contract that favored his own company, what was his primary business motivation? A. Maintaining positive international relationsB. Satisfying demandC. Maintaining high ethical standardsD. Supporting the value chain

Difficulty: ModerateType: Application

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18. (p. 44) Which of the following is not a persistent myth about entrepreneurs? A. Leaders are born, not madeB. Entrepreneurs are gamblersC. Solo entrepreneurs limit their potential for growthD. Entrepreneurs should be young and energetic


19. (p. 43, 44) Research has found that people are motivated by which of the following? A. The need for achievementB. The need for powerC. The need for affiliationD. All of the above


20. (p. 46) Which of the following was not one of the three principle success factors cited by the first 21 inductees into Babson College's Academy of Distinguished Entrepreneurs? A. The ability to respond positively to challenges and learn from mistakesB. The ability to attract and motivate an effective teamC. Personal initiativeD. Perseverance and determination


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21. (p. 47) According to the authors, which of the seven dominant themes of entrepreneurship is the most important? A. LeadershipB. Opportunity ObsessionC. CourageD. Commitment and DeterminationE. Tolerance of Risk, Ambiguity and UncertaintyF. Creativity, Self-Reliance, and AdaptabilityG. Motivation to Excel


22. (p. 48) Which of the following are Non-entrepreneurial Attributes? A. InvulnerabilityB. PerfectionistC. Outer controlD. All of the above


23. (p. 50) Building a substantial enterprise that will contribute something lasting and relevant to the world while realizing a capital gain can typically take how long? A. 1-3 yearsB. 3-5 yearsC. 5-10 yearsD. 10-15 years


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24. (p. 50) An organization's needs are satisfied ___________ those of the other constituents the enterprise serves. A. in parallel withB. beforeC. afterD. None of the above; depends on the situation


25. (p. 51) Successful entrepreneurs initially focus on what? A. MoneyB. ResourcesC. NetworkingD. Opportunity


26. (p. 51) What was the primary business principle that entrepreneur Tom Stemberg applied as he formulated his concept for his chain of office supply stores? A. Point-of-sale marketingB. FranchisingC. Mass distributionD. Volume economies


27. (p. 54) "Veridical awareness" refers to entrepreneurs' ability to A. Understand their limitationsB. Believe in themselvesC. Maintain a sense of perspectiveD. All of the above


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28. (p. 55) What is one of the primary attributes that separates entrepreneurial types from Inventors, Promoters, and Managers? A. Creativity and insightB. Conservation of resourcesC. Long range planningD. Marshalling diverse resources


29. (p. 56) In general, how long will venture capitalists work with a start-up before declaring the company a 'lemon'? A. Up to a yearB. About two and half yearsC. At least three yearsD. Three to five years


30. (p. 56) According to venture investors, what is a realistic time frame for growing a higher potential business to the point where a capital gain can be realized? A. 1-3 yearsB. 2-5 yearsC. 5-7 yearsD. 7-8 years


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31. (p. 57) Which of the following is not a paradox of entrepreneurship? A. Flexibility vs. opportunity focusB. Resource requirements vs. ownershipC. Age vs. experienceD. Drive and ambition vs. wisdom and judgment


32. (p. 57) Increasingly, research studies on the career paths of entrepreneurs and the self-employed suggest that which of the following is the central factor in successful venture creation? A. NetworkingB. The ability to marshal resourcesC. Experience and know-howD. The ability to attract and motivate an effective team


33. (p. 58) According to research, which of the following statements is false? A. Many successful entrepreneurs do not have prior industry experienceB. Most successful entrepreneurs start companies by their late 20sC. Most successful entrepreneurs follow a pattern of apprenticeshipD. Family firms spawn entrepreneurs


34. (p. 64, 65) Crafting a Personal Entrepreneurial Strategy can A. Create tension and pressureB. Heighten the fear of failureC. Spark action towards achievable goalsD. All of the above


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Short Answer Questions

35. (p. 42) Two of the three core principles that are the cornerstone of the values, philosophy, and culture of the Kauffman Foundation are Treat others as you would want to be treated, and Share the wealth that is created with all those who have contributed to it at all levels. What is the third core principle?

Give back to the community.


36. (p. 65) Name the conceptual scheme for thinking about the self-assessment process where there are two sources of information about the self: the individual, and others.

the Johari Window.

Difficulty: HardType: Vocabulary

37. (p. 65) What plays a significant role in influencing an entrepreneur's values, motivations, attitudes, and behaviors?

personal history


Fill in the Blank Questions

38. (p. 43) The ________ is the need to excel and for measurable personal accomplishment. need for achievement


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39. (p. 44) The ________ is the need to build a warm relationship with someone else and/or to enjoy mutual friendship. need for affiliation


40. (p. 45) Successful entrepreneurs are not gamblers; they take ________. calculated risks


41. (p. 51) Entrepreneurs realize good ideas are a dime a dozen, but good ________ are few and far between. opportunities


42. (p. 53) For a successful entrepreneur, seeking and using ________ is central to the habit of learning from mistakes and setbacks, and of responding to the unexpected. feedback


43. (p. 56) Since entrepreneurs frequently evolve from an entrepreneurial heritage or are shaped and nurtured by their closeness to entrepreneurs and others, the concept of ________ can be a useful one. an apprenticeship


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44. (p. 58) Numerous studies show a strong connection between the presence of ________ in their lives and the emergence of successful entrepreneurs. role models


45. (p. 62) Most successful entrepreneurs have had a ________ to help them achieve their dreams and goals, both implicitly and explicitly. personal strategy


46. (p. 64) Crafting a personal entrepreneurial strategy can be viewed as the personal equivalent of developing a ________. business plan


Essay Questions

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47. (p. 51) Discuss the concept of 'hero maker' with regard to entrepreneurial leadership.

Entrepreneurs who create and build substantial enterprises are not lone wolves and super-independent. They do not need to collect all the credit for the effort. They not only recognize the reality that it is rarely possible to build a substantial business working all alone, but also actively build a team. They have an uncanny ability to make heroes out of the people they attract to the venture by giving responsibility and sharing credit for accomplishments. Hero makers try to make the pie bigger and better, rather than jealously clutching and hoarding a tiny pie that is all theirs. They have a capacity for objective interpersonal relationships as well, which enables them to smooth out individual differences of opinion by keeping attention focused on the common goal to be achieved.


48. (p. 49) In what ways is having Courage an important part of being an entrepreneur?

Courage has at least three important aspects in entrepreneurship. First, moral strength and principles: the character and the personal integrity to know right from wrong, and the will and commitment to act accordingly (to do the right thing). The second is being a fearless experimenter: a restlessness with convention and a rejection of the status quo. This relentless experimentation is enhanced by a third aspect of courage: a lack of fear of failing at the experiment—and most undertakings for that matter—and a lack of fear of conflicts that may arise. In other words, there is a mental toughness that is quite impervious to fears but is not ignorant or oblivious to possible consequences.


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