ENTREPRENEURSHIP DAY 1 (SESSION 1)

A friend presents a high-risk, high-reward investment opportunity. A Fabian entrepreneur, Robert, is considering whether to invest. What is Robert's MOST likely decision?

• Invest a significant portion of his capital, hoping for a large return.

• Invest a small, carefully calculated amount, minimizing potential losses.

• Decline the investment, preferring to keep his capital in safe, stable assets.

• Ask his friend for a written guarantee of a specific return on investment.

Answer explanation

Fabian entrepreneur is known for being risk-averse, preferring stability and security over high-risk, high-reward ventures. They are cautious, deliberate, and often avoid speculative investments. Given Robert's Fabian entrepreneurial mindset, he is most likely to decline the investment and keep his capital in safe and stable assets rather than risk it on an uncertain opportunity.

"The word 'entrepreneurship' originates from French. Which definition best reflects its original meaning?

• Establishing a business venture

• To undertake or begin

• Managing financial risks

• Creating a financial strategy

Answer explanation

The word "entrepreneurship" originates from the French verb "entreprendre," which means "to undertake" or "to begin." Historically, it referred to someone who takes on initiatives, starts projects, or assumes responsibility for economic ventures. Over time, the meaning evolved to specifically relate to business and innovation.

Scenario 2: A small electronics manufacturer relies on a single company for a specialized component that is essential to its product. Which of Porter's Five Forces is MOST relevant to this situation?

• Threat of New Entrants

• Bargaining Power of Suppliers

• Threat of Substitute Products or Services

• Bargaining Power of Buyers

Answer explanation

Porter’s Five Forces framework analyzes industry competition, and in this scenario, the electronics manufacturer relies on a single supplier for a critical component. This gives the supplier significant bargaining power, as the manufacturer has limited alternatives. If the supplier raises prices, reduces quality, or delays production, the manufacturer has little leverage to negotiate better terms.

What major obstacle do new businesses typically face when trying to enter a well-established market?

• The need for significant financial investment

• Relaxed regulations and government support

• Minimal startup costs

• Simple and readily available distribution channels

Answer explanation

One of the biggest challenges for new businesses entering a well-established market is the high financial investment required. Established companies have brand recognition, economies of scale, customer loyalty, and existing infrastructure, making it difficult for new entrants to compete. New businesses must invest heavily in production, marketing, distribution, and innovation to gain a foothold in the market.

A family restaurant has used the exact same menu and cooking methods for 30 years, despite declining sales and changing customer preferences. The owner most likely is a:

• Social entrepreneur

• Fabian entrepreneur

• Drone entrepreneur

• Innovative entrepreneur

Answer explanation

A drone entrepreneur is someone who resists change and refuses to adapt to new market trends, even when their business is struggling. In this scenario, the restaurant has not updated its menu or cooking methods for 30 years, despite declining sales and evolving customer preferences. This shows a stubborn refusal to innovate, which is a defining characteristic of a drone entrepreneur.