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CHApter1
2.What key insights does the GEM study provide us about entrepreneurship? Of particular interest to GEM is early stage entrepreneurial activity, which consists of businesses that are just being started and businesses that have been in existence for less than three and one-half years. While the high rates of entrepreneurial start-up activities occur in low-income countries, where good jobs are not plentiful such as brazil, china, Argentina. Low rates occur in high-income countries, such as Germany, French, USA. also identifies whether its respondents are starting a new business to take advantage of an attractive opportunity or because of necessity to earn an income. High-income countries——attractive opportunity. Low-income country —— earn income.
3. What evidence is available suggesting that the often reported statistic that 9 out of 10 new businesses fail is an exaggeration? What is a more realistic failure rate for new firms?
According to Brian Headd, an economist for the U.S. Small Business Administration, after four years 50 percent of new businesses are still open, 33 percent have failed, and 17 percent are closed but were considered to be successful by their owners.5 While overall these figures are heartening, the 33 percent of start-ups that fail show that a motivation to start and run a business isn’t enough; it must be coupled with a solid business idea, good financial management, and effective execution to maximize chances for success.
4. What is entrepreneurship? How can one differentiate an entrepreneurial firm from any other type of firm? In what ways is an entrepreneur who just launched a restaurant different from someone who just took a job as a general manager of a restaurant owned by a major restaurant chain?
Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. Typically, established firms with an entrepreneurial emphasis are proactive, innovative, and
2.What key insights does the GEM study provide us about entrepreneurship? Of particular interest to GEM is early stage entrepreneurial activity, which consists of businesses that are just being started and businesses that have been in existence for less than three and one-half years. While the high rates of entrepreneurial start-up activities occur in low-income countries, where good jobs are not plentiful such as brazil, china, Argentina. Low rates occur in high-income countries, such as Germany, French, USA. also identifies whether its respondents are starting a new business to take advantage of an attractive opportunity or because of necessity to earn an income. High-income countries——attractive opportunity. Low-income country —— earn income.
3. What evidence is available suggesting that the often reported statistic that 9 out of 10 new businesses fail is an exaggeration? What is a more realistic failure rate for new firms?
According to Brian Headd, an economist for the U.S. Small Business Administration, after four years 50 percent of new businesses are still open, 33 percent have failed, and 17 percent are closed but were considered to be successful by their owners.5 While overall these figures are heartening, the 33 percent of start-ups that fail show that a motivation to start and run a business isn’t enough; it must be coupled with a solid business idea, good financial management, and effective execution to maximize chances for success.
4. What is entrepreneurship? How can one differentiate an entrepreneurial firm from any other type of firm? In what ways is an entrepreneur who just launched a restaurant different from someone who just took a job as a general manager of a restaurant owned by a major restaurant chain?
Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. Typically, established firms with an entrepreneurial emphasis are proactive, innovative, and