Deck 15: From Starting to Scaling and Beyond: How Do Entrepreneurs and Smes Innovate and Grow

Question 1

SMEs are critically important for the UK and the European economy.

Answer 1

True

Question 2

An SME can be defined as: (Please select all that apply.)

A) A business comprising only the entrepreneur
B) A small company of 3-5 people
C) A fast-growth firm of 100 people
D) A large multinational company of 450 people

Answer 2

A, B, C, D

Question 3

The concept of intrapreneurship:

A) Describes small business entrepreneurship
B) Refers to how individuals act in an entrepreneurial way in large organizations
C) Refers to a new franchise
D) Is undertaken only by female entrepreneurs

Answer 3

B

Question 4

Is a small business owner also an entrepreneur?

Question 5

There is no commonly accepted definition of 'entrepreneur'.

Question 6

An SME goes through each stage of growth in a sequential, linear fashion.

Question 7

One of the common growth models is that of Churchill and Lewis. Which stages of growth are included in their model? Please select all that apply.

A) Existence and survival
B) Success-disengage
C) Take-off
D) Resource maturity

Question 8

Why are SMEs so critical to the economy? Please select all that apply.

A) SMEs provide employment for people who cannot find work in large corporations
B) SMEs account for a significant proportion of a country's gross domestic product (GDP)
C) SMEs are expected to remain small and don't compete with large companies
D) SMEs play a critical role in bringing innovations to the market

Question 9

Why are values an important factor in the success of an entrepreneur? Please select all that apply.

A) Values ensure that the entrepreneur will maximize his/her profits
B) Values influence the decision by an entrepreneur to pursue an opportunity and take on a certain level of risk and uncertainty
C) Values influence how the entrepreneur defines 'success'
D) Values held by entrepreneurs have no influence on the ethical practices undertaken by their enterprises

Question 10

Briefly describe the logic of the business model canvas and its nine key elements.

Question 11

High-growth firms, as defined by the OECD, are:

A) Any firm that grows more than 5 per cent over five years
B) Firms that achieve high growth through acquisitions
C) Firms with an average annualized growth rate greater than 20 per cent per year, over a three-year period
D) Firms with an average annualized growth rate greater than 10 per cent per year, over a five-year period

Question 12

Use of 'job creation' as the primary measure of the economic contribution of SMEs has been criticized for a number of reasons. Please select all reasons that apply.

A) Many business owners do not set up their businesses to create new jobs and employ more people
B) Job creation does not tell the full story, as job losses are not always included within calculations of job creation
C) Job creation is expected from 'high-growth' firms; yet, such enterprises represent only a small proportion of firms
D) Policymakers are not interested in job creation in their support for SMEs

Question 13

Employee 'voice' refers to:

A) The percentage of employees that agree or disagree on a particular topic
B) The practice that exists in enterprises to give employees an opportunity to contribute towards decision-making
C) The level of noise generated by employees in a business environment
D) Those employees who are allowed to talk directly to the business owner(s)

Question 14

In reference to the BIG Ten characteristics of successful SMEs, the attribute of 'systemizer' refers to:

A) Making informed decisions based on accurate data
B) Generating ideas and continually innovating
C) Seeking new opportunities for exploiting knowledge
D) Developing and maximizing the capacity of systems

Question 15

Which of the statements below is true, in describing the phenomenon of entrepreneurship?

A) Entrepreneurial success is reliant on the entrepreneur possessing a particular set of personal traits
B) Entrepreneurship is unique to western countries
C) Entrepreneurship does not discriminate according to class, gender, or national origin
D) Ambition and passion are traits more commonly found in male entrepreneurs

Question 16

Which of the following can be described as an 'innovation', according to Joseph Schumpeter?

A) New good or service
B) New organizational form
C) New source of raw material
D) New market

Question 17

The effects of a 'radical innovation' can include which of the following:

A) Making existing products or services less attractive to customers
B) Contributing to the decline of enterprises which do not innovate
C) Disrupting the status quo of the market
D) Reduction in the performance of existing products

Question 18

'Liability of newness' refers to:

A) The inability of an enterprise to create new software
B) Lack of market credibility for a new enterprise resulting from lack of track record and market experience
C) Legal action against a new enterprise
D) The liability of employing people new to a company

Question 19

Entrepreneurial orientation (EO) is a concept involving different dimensions of behaviour and actions which can enhance enterprise performance. Which of the following are dimensions of EO?

A) Risk-taking
B) Innovativeness
C) Politeness
D) Competitive aggressiveness

Question 20

New venture formation typically involves which of the following 'business formation' activities?

A) Assessing financial feasibility
B) Giving away free products
C) Securing resources
D) Opportunity identification