Question 1

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

Accepted Answer

SMEs (Small and Medium-sized Enterprises) are critically important for both the UK and the European economy as they contribute significantly to employment, innovation, and economic growth. They represent a vast majority of businesses in these regions and are key drivers of diversity in the marketplace and regional development.

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

Accepted Answer

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

Accepted Answer

Intrapreneurship refers to the practice of entrepreneurship within the confines of and by the employees of an existing organization. It involves employees acting like entrepreneurs, taking initiative, and generating new ideas or projects within the company, which can lead to innovation and new business opportunities for the organization.

Question 4

Is a small business owner also an entrepreneur?

Accepted Answer

The answer of Is a small business owner also an...

Question 5

There is no commonly accepted definition of 'entrepreneur'.

Accepted Answer

While there are many definitions of an "entrepreneur," there is no single definition that is universally accepted by all scholars and business professionals. Definitions vary based on perspective, emphasizing different aspects such as innovation, risk-taking, starting a business, and the ability to recognize and capitalize on opportunities.

Question 6

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

Accepted Answer

SMEs (Small and Medium-sized Enterprises) do not necessarily go through each stage of growth in a sequential, linear fashion. Growth can be uneven, with periods of rapid expansion, stagnation, or even contraction, influenced by various internal and external factors.

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

Accepted Answer

The answer of One of the common growth models is...

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

Accepted Answer

SMEs account for a significant proportion of a country's gross domestic product (GDP) and 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

Accepted Answer

Values play a crucial role in guiding an entrepreneur's decisions, including the opportunities they pursue and their tolerance for risk and uncertainty. Additionally, an entrepreneur's personal definition of 'success' is often shaped by their values, influencing their goals and how they measure achievement.

Question 10

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

Accepted Answer

The answer of Briefly describe the logic of the business...

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

Accepted Answer

The OECD defines high-growth firms as those with an average annualized growth rate greater than 20 per cent per year, over a three-year period, in terms of either revenue or the number of employees.

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

Accepted Answer

Many business owners focus on profitability rather than job creation (A). Job creation metrics often overlook job losses, providing an incomplete picture (B). High-growth firms, which are expected to create jobs, are a minority among SMEs (C).

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)

Accepted Answer

Employee 'voice' refers to the mechanisms and practices that allow employees to express their opinions, concerns, and suggestions regarding the workplace, thereby contributing to decision-making processes within the organization.

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

Accepted Answer

The attribute of 'systemizer' in the context of successful SMEs refers to the ability to develop and maximize the capacity of systems, ensuring that operations are efficient and scalable.

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

Accepted Answer

Entrepreneurship is a universal phenomenon that can be found across all demographics, including various classes, genders, and national origins. It is not limited by personal background, making it accessible to a wide range of individuals with diverse backgrounds.

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

Accepted Answer

The answer of Which of the following can be described...

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

Accepted Answer

Radical innovation often introduces groundbreaking changes that can make existing products less appealing, lead to the decline of non-innovative companies, and disrupt the current market dynamics.

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

Accepted Answer

'Liability of newness' refers to the challenges and disadvantages that new enterprises face due to their lack of established reputation, track record, and experience in the market. This can affect their ability to attract customers, secure financing, and compete with established firms.

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

Accepted Answer

Risk-taking, innovativeness, and competitive aggressiveness are all dimensions of entrepreneurial orientation. Politeness is not a dimension of entrepreneurial orientation.

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

Accepted Answer

Assessing financial feasibility, securing resources, and opportunity identification are key activities in forming a new business.

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

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

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

The concept of intrapreneurship:

Is a small business owner also an entrepreneur?

There is no commonly accepted definition of 'entrepreneur'.

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

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.

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

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

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

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

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.

Employee 'voice' refers to:

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

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

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

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

'Liability of newness' refers to:

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?

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