[Solution] Entrepreneurship, Start-ups, and New Ventures
Created at:
Author: Sarah Bennett
Much U.S. and global economic activity is generated by new companies founded by entrepreneurs. These companies are usually small when founded. Some successful small businesses stay small due to environmental constraints or because of their owner's preference, while others grow into large businesses.
Entrepreneurship and Small Businesses
An entrepreneur is someone who engages in entrepreneurship, which is the process of planning, organizing, operating, and assuming the risk of a start-up or new venture.
A start-up or new venture is a relatively new small business. A small business is privately owned by one individual or a small group and has revenues and assets that are not large enough to influence its environment.
Key Entrepreneurial Characteristics
Risk-Taking
Willingness to face uncertainty and potential failure
Innovation
Creating new products, services, or business models
Vision
Ability to see opportunities where others don't
Adaptability
Flexibility to pivot when initial plans don't work
Persistence
Determination to overcome obstacles and setbacks
Resource Management
Ability to maximize limited resources
Entrepreneurs play a critical role in economic development by:
- Creating new jobs and employment opportunities
- Introducing innovative products and services
- Increasing competition and improving market efficiency
- Generating wealth and economic growth
Select the term that best completes the following sentence.
A company is if it is owned by no more than a small group of people and is not large enough to affect its environment.
View Explanation
One definition of a small business is that it is owned by one individual or a small group of individuals and it is not large enough, as measured by assets and revenues, to affect its environment. How large a small business is varies somewhat from industry to industry.
