4/26/2011 8:05:00 AM 25th of may Exam 2h15 mins 4 questions : => Immediately answer the question extra marks

s are given for logical organization references to authors Critical reflection + ANSWERING THE QUESTION. Select 4 topics, look at slides + materials (DTI) 1 st theme: Economic & non- economic benefits of SMEs New Firms create wealth business can be taxed,entrepreneurs can be taxed spiral of wealth creation & job creation Benefits of competition for society and consumers survival of the fittest, the smaller firms are made bankrupt. Prices fall = Competition. SMEs can create jobs New firms = economic development Non-economic benefits of setting up SMEs Help jobs :Disabled, young people, women Decrease the power of larger firms GV will encourage prosperity, development 2nd theme: Economic theories of entrepreneurship assumptions of econ theory then different view points on econ theories roles. judgments, contributions made by entrepreneurs made to the economie - casson slide 4 key themes entrepreeurs deal with risk & uncertainty:

Say 1888: resource assemblage to set up the business and to organize the business effectively Kirzner: spotting, noticing niches in the marketplace . Entrepreneurs spot and seize business opportunities that other people dont see. Kirzner explains that entrepreneurs bring markets back to equilibrium. Schumpeter: Creative distruction 4 new combinations described by shumpeter Radical innovation creates new markets that never existed before Penrose: Entrep have to manage & assemble ressources Marshall: Livenstein: Psychological barriers THEN Critique They dont appreciate there are different types of entrep Personality Skills Knowledge Indeed there are different types of businesses entrepreneurial businesses Policy makers want more businesses to be creative Entrep profile: Positive personality profile Policy makers: Educate ppl, positive personality traits. Explain : personality ( sneider ) Assumption a persons personality shapes one to become a successful entrepreneur Policy Makers have looked at successful entrepreneurs and founds these positive traits of entrepreneurs. Entrepreneurial traits: 1- positive personality 2- Encouraging ppl to be moderate risk takers (Knight 1984) 3- High locuss of control

4- high tolerance of ambiguity

Gartner article ( critique of personality perspective) Critique of personality traits in lecture slides Personality is not a major reason for ppl to become an entrepreneur: TABLE 1 ( ref ) Family background and education can shape whether you become an entrepreneur. Specific human capital: definition (wiki) Smith 1967: Craftsmen entrepreneurs & Opportunist entrepreur Opp entrep significantly more chances of success. We can identify losers, craftsmen type and opportunist type entrepreneurs, from the very start of a business. Novie Entrep , serial entrep , portfolio entrepreneurs Bus owned by portfolio entrep are more successful than those owned by Novie Entrep & serial entrep

5th theme: Shell technology entreprise programe. Intervention to remove attitudinal and resource Dynamics of the Shell tech programme 6th Theme: Formal job related training GV are encouraging learning societies Encouraging businesses to survive & grow GV are encouraging owners of micro & small firms to give formal qualifications, training & skills, that are transferable.

Many owner/ managers value educating as they sometimes dont have qualifications themselves and are ignorant (Storey) of the positives of having training. Many small firms dont have a long term vision They dont provide training because its a direct cost: Issue of Poaching Investing in a person, and another employer tempts the trained employee with a high salary. Many owners of micro/small firms are not aware of the benefits of formal job related training. US positive evidence / Outside the US mixed evidence

7th Key theme: Female entrepreneurship performance VS male performance glass ceilings subordination discrimination paid less than mec less than 24 % of Self employed are women women have fewer imputs relative to men limited financial ressources liberal / social feminist perspective women underperform prepared to women Watson : women perform better than men

Empirical studies that compet men against women Present a table.

8th key theme: Family Businesses Definition

Signifant contripution to sales. Gdp etc 2/3 rd of bus are family businesses strengths and weaknesses of family firms in terms of : ownership management strategy family firms VS non family firms Strenghts and weaknesses Empirical evidence.

Strengths: think long term Encourage trust, longevity, equality & quality Ownership and management : difficulties Significant contributions by family firms There is a case to supply customized support to family firms

4/26/2011 8:05:00 AM

4/26/2011 8:05:00 AM