Answers to Self-Assessment Questions

1Entrepreneurship: Concept and Importance

1. (b) Entrepreneurship starts from new value or a better way, not from repeating what exists.
2. (a) Innovation from inside the organization, as an employee, is intrapreneurship.
3. (b) Schumpeter described how new innovation pushes aside the old.

2The Entrepreneurial Mindset

1. (a) They set what they accept losing before starting.
2. (b) Entrepreneurship is behaviors and skills acquired through practice.
3. (b) They turned a surprise into an opportunity.

3Opportunities and Idea Generation

1. (b) An opportunity is an idea that meets market and execution conditions.
2. (a) A change in what people care about and value is a source of opportunity.
3. (b) Early criticism kills ideas.

4Creativity and Innovation

1. (b) The way of making money changed, not the service itself.
2. (b) Innovation is the idea reaching use.
3. (b) Early adopters try things and influence others.

5Understanding the Customer and the Market

1. (b) Asking about the specific past reveals real behavior.
2. (a) A segment with a specific behavior and need.
3. (b) He meets the same need in a different way.

6The Business Model

1. (b) The basics are free and the extras are paid.
2. (b) The value proposition is the heart of the business model.
3. (a) A share of each transaction between two sides.
4. (b) Road time and scheduling are a cost nobody pays for, so the workable price becomes too high and the customer prefers the shop.
5. (b) The car and the available time cost them little, because they already exist.

7Testing and Prototyping

1. (a) They delivered the service themselves to a few customers in order to learn.
2. (b) A financial commitment is stronger than words.
3. (b) We keep what worked and change what didn't.

8Marketing for New Ventures

1. (a) 2,000 ÷ 50 = 40.
2. (b) Focus raises impact and reduces waste.
3. (a) What the customer sees and touches of the service.

9Fundamentals of Finance and Funding

1. (b) The margin is 12, and 6,000 ÷ 12 = 500.
2. (b) It rises with every meal sold.
3. (a) Accounting profit is not cash in hand.

10Legal and Ethical Aspects

1. (a) Freelancing suits individual services.
2. (b) Protection covers the specific execution and form, not the abstract idea.
3. (b) Early clarity protects both the venture and the relationship.

11Pitching and Persuasion

1. (b) A story grabs attention and makes the problem real.
2. (b) Honesty builds more trust than invention.
3. (a) Actions are stronger than expectations.

12Growth and Lessons from Success and Failure

1. (a) Building something not enough people need.
2. (b) Revenue grows faster than costs.
3. (b) Fear for the present cost them the future.