, TESTBANK FOR Entrepreneurship, 6th Edition
Zacharakis
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Questions for Chapter 1
True/False
1. Moravian-born economist, Joseph Schumpeter defines an entrepreneur as someone who
destroys the existing economic order as a result of his or her activities. (pg. 3)
(True)
2. In general businesses with fewer than 500 employees are considered “small sized business.”
(pg 5) (True)
3. There are less than 10 million small businesses in United States today. (pg. 5) (False)
4. Approximately 66% of all businesses start in the owner’s home, but fail to grow primarily
because the entrepreneur hires too many full-time workers. (pg. 5)
(False)
5. The first two NASDAQ stocks to be included in the Dow Jones Industrial Average were
Microsoft and Intel. (pg. 6) (True)
6. When Microsoft joined the DJIA in 1999, there were more than 200 million Internet users,
up from 3 million just five years earlier. (pg. 7)
(True)
7. Venture Capital is a source of growth funding exclusively for technology companies with the
potential for rapid, scalable growth. (pg. 11)
(False)
8. The former dean of the Nomura School of Advanced Management in Japan, Jiro Tokuyama,
once said that the venture capital firms in Japan comprise one of the chief advantages for
Japanese, technology start-ups. (pg. 11)
(False)
9. The period between 1996 through 2000 was considered the golden era for classic venture
capitalists and the companies they invested in. (pg. 12) (True)
10. Yahoo! Inc.’s IPO set the all-time record, in terms of capital raised, for Silicon Valley
companies. (pg. 12) (False)
11. Entrepreneurship did not grow very much after the Great Depression, until it began
increasing in the 1970’s. (pgs. 14-15) (True)
12. Churning is a main component of a healthy economy. (pg. 13)
(True)
13. Baby boomers are not as concerned about job security as were their parents. (pg. 14)
(True)
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 14. Today, less than 90% of employees work for Fortune 500 companies. (pg. 14)
(True)
15. There was a burst of venture capital backed startups in the last half of the 1960s. (pg. 15)
(True)
16. The Small Business Innovation Research (SBIR) program set aside $4.3 billion to support
the financing of cutting-edge technologies developed by small businesses in 2022. (pg. 15).
(True)
17. Today, approximately 3000 universities have offices for technology transfer. (pg. 15)
(True)
18. Virtual companies are so called because they outsource much of their work. (pg. 16) (True)
19. The professionalization of the entrepreneurial process, which has developed over
the last 20 years, has almost eliminated the need for young entrepreneurs to write
business plans themselves. (pg. 16)
(False)
20. Today, the International Business Innovation Association (INBIA) estimates that there are
over 10,000 incubators worldwide. (pg. 16)
(False)
21. The availability of financing has driven the entrepreneurial revolution. (pg. 17)
(False)
22. In 2021, the National Venture Capital Association reported that venture capital investment
reached $150 billion, surpassing the all-time high in 2000. (pg. 17)
(False)
23. The Global Entrepreneurship Monitor (GEM) is an organization created to gather
information about the most successful start-ups for potential investors. (pg. 18)
(False)
24. The Total Early-Stage Entrepreneurial Activity (TEA) index tracks the percent of the adult
population that is trying to start or have started an infant business because all other options
for work are either absent or unsatisfactory. (pg. 18)
(False)
25. Within the Level C countries, Ecuador and Guatemala have the highest TEA ranks
and scores in their respective region. (pg. 20)
(True)
Multiple Choice
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 1. What helped in unleashing the power of entrepreneurship and raise the standard of living in
India? (pg. 2)
A. Open and free competition
B. Information Technology
C. Agriculture
D. Manufacturing
E. Information Services
2. Small businesses in the United States represent what percent of all businesses in
the country? (pg. 5)
A. 99%
B. 95%
C. 85%
D. 70%
E. 60%
3. What percentage of new business ventures typically survive their first 5 years of operation?
(pg. 7)
A. 100
B. 81
C. 65
D. 40
E. 25
4. What percentage of jobs are created through small businesses? (pg.5)
A. 50%
B. 63%
C. 48%
D. 58%
E. 28%
5. What are the sectors which are leading small business employers? (pg. 5)
A. Healthcare
B. Hospitality
C. Food Services
D. Retail sector
E. All of the above
6. Which of the following entrepreneurs was one of the pioneers of the biotechnology industry?
(pg. 9)
A. Robert Noyce
B. Arthur Blank
C. Tim Berners-Lee
D. George Gendron
E. Robert Swanson
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 7. Which airline prompted the deregulation of interstate travel? (pg. 9)
A. United Airlines
B. Delta
C. Continental
D. Southwest Airlines
E. Pan-Am
8. Jim Clark, an IT entrepreneur, became the first Internet billionaire because of his investment
in what company? (pg. 11)
A. Yahoo! Inc.
B. Netscape Communications
C. Amazon.com Inc.
D. Google Inc.
E. Microsoft Corp.
9. Which of the trends below converged to spark the Internet revolution of the 1990’s? (pg. 11)
A. Personal Computers, Cell Phones, and Laser Printing
B. Digital Technology, Information Technology, and Entrepreneurship
C. Personal Computers, Modems, and Floppy Disks
D. Entrepreneurship, Venture Capital, and Computer Software
E. Venture Capital, Biotechnology, and Telecommunications
10. In 2022, there were how many internet users globally? (pg. 11)
A. 6 Billion
B. 5 Billion
C. 4 Billion
D. 3 Billion
E. 2 Billion
11. Which of the following industries was the prime example of venture capital fueling the pace
of commercial innovation? (pg. 11)
A. Semi-Conductors
B. Mini-Computers
C. Biotechnology
D. Personal Computers
E. All of the Above
12. Dating back to the 1970’s till today, what percent of public companies can trace their
roots back to venture capital? (pg. 11)
A. 36%
B. 40%
C. 42%
D. 49%
E. 53%
13. Who reasoned that capitalism would be inevitably destroyed by elites? (pg. 12)
A. Whyte
B. Servan-Schreiber
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, C. Schumpeter
D. Lenin
E. Marx
14. According to the GEM model, how many sets of activities create the basis for
national economic growth? (pg. 18)
A. 2
B. 3
C. 4
D. 5
E. 6
15. Which term is used to describe business churning? (pg. 13)
A. Artificial evolution
B. Evolving transition
C. Making the butter
D. Business expansion
E. Creative destruction
16. What percent of the workforce did Fortune 500 companies employ in 1960’s? (pg.
14)
A. 10
B. 15
C. 20
D. 25
E. 30
17. What percent of the workforce does Fortune 500 companies employ currently? (pg.
14)
A. Less than 1%
B. 5
C. 10
D. 15
E. 20
18. How much new VC money was committed in 1975? (pg. 15)
A. $10 million
B. $45 million
C. $145 million
D. $430 million
E. $930 million
19. What is the % of online sales expected in 2024? (pg. 16)
A. 10%
B. 20%
C. 30%
D. 40%
E. 50%
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 20. What does SBIR stand for? (pg. 15)
A. Savings, Brokerage, and Investment Reserve
B. Small Business Innovation Research
C. Space Based Infra Red
D. Speaker Boundary Interference Response
E. Small Business Interest Rate
21. How much does the Bayh-Dole Act contribute annually to the US economy? (pg. 15)
A. $300 million
B. $950 million
C. $12 billion
D. $32 billion
E. $40 billion
22. What was the primary objective of the Bayh-Dole Act? (pg. 15)
A. Commercial development of intellectual property
B. Investment of pension funds in venture capital companies
C. Gender equality among entrepreneurs.
D. Support for young entrepreneurs
E. All of the above
23. How many business incubators are in the US currently? (pg. 16)
A. 200
B. 1000
C. 3000
D. 7,000
E. 10,000
24. The TEA represents the percentage of adults (18-64) who are starting or running a
new business defined as one that has not paid wages or salaries for more than:
(pg. 23)
A. 32 months
B. 24 months
C. 28 months
D. 36 months
E. 42 months
Open ended
1. Why are small businesses an important consideration for state and federal politicians? (pg.
4-5)
In the U.S. there are more than 33 million or so small businesses, representing 99.9 percent
of total businesses.
Small businesses account for half of the private-sector workers and 39.4% of private payroll
Small businesses generate a third of the U.S.’s total exports
Small businesses create most of the jobs in the US.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
,2. Explain, in your own words, Schumpeter’s view of entrepreneurship’s role in an economy
and society. (pg. 12)
Schumpeter argued that the innovation and technological change of a nation come from
entrepreneurs.
He believed that entrepreneurs are the ones who facilitate the functionality of an economy.
He claimed that by destroying old businesses and creating new ones, entrepreneurs keep the
economy healthy.
3. Describe how Intel and Microsoft became the two major entrepreneurial driving forces that
transformed the U.S. economy in the last quarter of the 20th century. (pg. 6-8)
In 1971, Intel launched the first commercial microprocessor, heralding a new era in
integrated electronics. In 1974, Intel launched the first general-purpose microprocessor,
which was the brain of the first personal computer.
Bill Gates and Paul Allen formed Microsoft where they began developing software for
personal computers. In 1980-81, Microsoft introduced MS-DOS for IBM’s first PC, and
fourteen years later, released Windows 95 in 1995.
4. What was the most critical step in Federal Express’ rapid growth? (pgs. 8 – 9)
In the mid-1970s, Federal Express had taken a leading role in lobbying for air cargo
deregulation that finally passed in 1977.
These changes allowed Federal Express to use larger aircraft and spurred the company's
rapid growth. Today, FedEx ships 15 million packages a day on average and connects overs
99% of the world’s GDP by covering more than 220 countries and territories across the
globe.
5. Give two examples of how companies strengthened their businesses through changes in
regulations. (pgs. 8 – 9)
Federal Express had taken a leading role in lobbying for air cargo deregulation that finally
passed in 1977. These changes allowed Federal Express to use larger aircraft and spurred the
company's rapid growth
Herb Kelleher, the charismatic co-founder of Southwest Airlines, is often credited with
triggering airline deregulation by persevering with his legal battle to get Southwest airborne,
in the face of fierce legal opposition from Braniff, Trans-Texas, and Continental Airlines.
6. Why is the Internet one of the most revolutionary developments in the history of
commercial innovation? (pg. 9 – 10, 16)
The internet provided businesses with millions of flexible spaces in which to conduct
commerce.
Small businesses gained a platform that allowed them to compete with multi-billion
corporations.
The internet spurred the proliferation of information. Any entrepreneur now has access to
virtually any information he or she needs.
7. Why was the Netscape’s IPO so popular and successful? (pgs. 12-13)
Netscape Navigator was an instant hit with users, gaining 75 percent of the browser market
within four months of its introduction.
Netscape was only 16 months old when it went public in August 1996.
It made Jim Clark the first Internet billionaire.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, Venture capitalists saw huge potential in Netscape, accelerating the company’s
commercialization.
8. Which factors led to American entrepreneurial revolution? (pg. 12-13)
In the 1960s a generation of Americans who had no first-hand memory of the Great
Depression and did not believe an economy should be built on corporations only came of
age.
In the 1970s, Washington, after bailing out Penn Central, Lockheed, and Chrysler, started to
pay more attention to small businesses
Congress took steps in 1978 to stimulate the venture capital industry, which, in turn, led to
more investments in start-ups
Bayh-Dole Act, implemented in 1980 fostered the growth of technology-based small
businesses by allowing them to own the patents that arose from federally sponsored research
9. What was the effect of the Bayh-Dole Act? (pg. 15)
10 years ago, The Economist estimated that Bayh-Dole had created 2,000 new companies
and 260,000 new jobs and had contributed $40 billion annually to the U.S. economy. More
progress has been made since then.
More than 1,200 universities have offices for technology transfer.
10. Who, in your opinion, would benefit from the creative destruction process and
why? (pgs. 17)
Economy – stays healthy and primed for growth.
The customer – new ventures create better products.
The companies themselves – the threat of creative destruction leads companies to constantly
improve their operating and production processes and leads to faster learning curves.
11. Describe the three main measures of entrepreneurial activity. (pg. 22-24)
TEA (total entrepreneurial activity) is the percentage of the adult population that is either
nascent entrepreneurs or baby businesses owner-managers or both. It measures the
overall entrepreneurial activity of a nation.
TEA (opportunity) is the percentage of the adult population that is trying to start or has
started a baby business to exploit a perceived opportunity. They are classified as
improvement-driven opportunity motivated if they additionally seek to improve their
income or independence through entrepreneurship.
TEA (necessity) is the percentage of the adult population that is trying to start or has
started a baby business because all other options for work are either absent or
unsatisfactory.
12. Explain what the Global Entrepreneurship Monitor (GEM) is. (pg. 14-17)
It was conceived in 1997 to study the economic impact and the determinants of national-
level entrepreneurial activity.
It is the largest coordinated research effort ever undertaken to study population-level
entrepreneurial activity.
GEM has become the world’s most influential and authoritative source of empirical data
and expertise on the entrepreneurial potential of nations.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
Zacharakis
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Questions for Chapter 1
True/False
1. Moravian-born economist, Joseph Schumpeter defines an entrepreneur as someone who
destroys the existing economic order as a result of his or her activities. (pg. 3)
(True)
2. In general businesses with fewer than 500 employees are considered “small sized business.”
(pg 5) (True)
3. There are less than 10 million small businesses in United States today. (pg. 5) (False)
4. Approximately 66% of all businesses start in the owner’s home, but fail to grow primarily
because the entrepreneur hires too many full-time workers. (pg. 5)
(False)
5. The first two NASDAQ stocks to be included in the Dow Jones Industrial Average were
Microsoft and Intel. (pg. 6) (True)
6. When Microsoft joined the DJIA in 1999, there were more than 200 million Internet users,
up from 3 million just five years earlier. (pg. 7)
(True)
7. Venture Capital is a source of growth funding exclusively for technology companies with the
potential for rapid, scalable growth. (pg. 11)
(False)
8. The former dean of the Nomura School of Advanced Management in Japan, Jiro Tokuyama,
once said that the venture capital firms in Japan comprise one of the chief advantages for
Japanese, technology start-ups. (pg. 11)
(False)
9. The period between 1996 through 2000 was considered the golden era for classic venture
capitalists and the companies they invested in. (pg. 12) (True)
10. Yahoo! Inc.’s IPO set the all-time record, in terms of capital raised, for Silicon Valley
companies. (pg. 12) (False)
11. Entrepreneurship did not grow very much after the Great Depression, until it began
increasing in the 1970’s. (pgs. 14-15) (True)
12. Churning is a main component of a healthy economy. (pg. 13)
(True)
13. Baby boomers are not as concerned about job security as were their parents. (pg. 14)
(True)
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 14. Today, less than 90% of employees work for Fortune 500 companies. (pg. 14)
(True)
15. There was a burst of venture capital backed startups in the last half of the 1960s. (pg. 15)
(True)
16. The Small Business Innovation Research (SBIR) program set aside $4.3 billion to support
the financing of cutting-edge technologies developed by small businesses in 2022. (pg. 15).
(True)
17. Today, approximately 3000 universities have offices for technology transfer. (pg. 15)
(True)
18. Virtual companies are so called because they outsource much of their work. (pg. 16) (True)
19. The professionalization of the entrepreneurial process, which has developed over
the last 20 years, has almost eliminated the need for young entrepreneurs to write
business plans themselves. (pg. 16)
(False)
20. Today, the International Business Innovation Association (INBIA) estimates that there are
over 10,000 incubators worldwide. (pg. 16)
(False)
21. The availability of financing has driven the entrepreneurial revolution. (pg. 17)
(False)
22. In 2021, the National Venture Capital Association reported that venture capital investment
reached $150 billion, surpassing the all-time high in 2000. (pg. 17)
(False)
23. The Global Entrepreneurship Monitor (GEM) is an organization created to gather
information about the most successful start-ups for potential investors. (pg. 18)
(False)
24. The Total Early-Stage Entrepreneurial Activity (TEA) index tracks the percent of the adult
population that is trying to start or have started an infant business because all other options
for work are either absent or unsatisfactory. (pg. 18)
(False)
25. Within the Level C countries, Ecuador and Guatemala have the highest TEA ranks
and scores in their respective region. (pg. 20)
(True)
Multiple Choice
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 1. What helped in unleashing the power of entrepreneurship and raise the standard of living in
India? (pg. 2)
A. Open and free competition
B. Information Technology
C. Agriculture
D. Manufacturing
E. Information Services
2. Small businesses in the United States represent what percent of all businesses in
the country? (pg. 5)
A. 99%
B. 95%
C. 85%
D. 70%
E. 60%
3. What percentage of new business ventures typically survive their first 5 years of operation?
(pg. 7)
A. 100
B. 81
C. 65
D. 40
E. 25
4. What percentage of jobs are created through small businesses? (pg.5)
A. 50%
B. 63%
C. 48%
D. 58%
E. 28%
5. What are the sectors which are leading small business employers? (pg. 5)
A. Healthcare
B. Hospitality
C. Food Services
D. Retail sector
E. All of the above
6. Which of the following entrepreneurs was one of the pioneers of the biotechnology industry?
(pg. 9)
A. Robert Noyce
B. Arthur Blank
C. Tim Berners-Lee
D. George Gendron
E. Robert Swanson
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 7. Which airline prompted the deregulation of interstate travel? (pg. 9)
A. United Airlines
B. Delta
C. Continental
D. Southwest Airlines
E. Pan-Am
8. Jim Clark, an IT entrepreneur, became the first Internet billionaire because of his investment
in what company? (pg. 11)
A. Yahoo! Inc.
B. Netscape Communications
C. Amazon.com Inc.
D. Google Inc.
E. Microsoft Corp.
9. Which of the trends below converged to spark the Internet revolution of the 1990’s? (pg. 11)
A. Personal Computers, Cell Phones, and Laser Printing
B. Digital Technology, Information Technology, and Entrepreneurship
C. Personal Computers, Modems, and Floppy Disks
D. Entrepreneurship, Venture Capital, and Computer Software
E. Venture Capital, Biotechnology, and Telecommunications
10. In 2022, there were how many internet users globally? (pg. 11)
A. 6 Billion
B. 5 Billion
C. 4 Billion
D. 3 Billion
E. 2 Billion
11. Which of the following industries was the prime example of venture capital fueling the pace
of commercial innovation? (pg. 11)
A. Semi-Conductors
B. Mini-Computers
C. Biotechnology
D. Personal Computers
E. All of the Above
12. Dating back to the 1970’s till today, what percent of public companies can trace their
roots back to venture capital? (pg. 11)
A. 36%
B. 40%
C. 42%
D. 49%
E. 53%
13. Who reasoned that capitalism would be inevitably destroyed by elites? (pg. 12)
A. Whyte
B. Servan-Schreiber
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, C. Schumpeter
D. Lenin
E. Marx
14. According to the GEM model, how many sets of activities create the basis for
national economic growth? (pg. 18)
A. 2
B. 3
C. 4
D. 5
E. 6
15. Which term is used to describe business churning? (pg. 13)
A. Artificial evolution
B. Evolving transition
C. Making the butter
D. Business expansion
E. Creative destruction
16. What percent of the workforce did Fortune 500 companies employ in 1960’s? (pg.
14)
A. 10
B. 15
C. 20
D. 25
E. 30
17. What percent of the workforce does Fortune 500 companies employ currently? (pg.
14)
A. Less than 1%
B. 5
C. 10
D. 15
E. 20
18. How much new VC money was committed in 1975? (pg. 15)
A. $10 million
B. $45 million
C. $145 million
D. $430 million
E. $930 million
19. What is the % of online sales expected in 2024? (pg. 16)
A. 10%
B. 20%
C. 30%
D. 40%
E. 50%
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, 20. What does SBIR stand for? (pg. 15)
A. Savings, Brokerage, and Investment Reserve
B. Small Business Innovation Research
C. Space Based Infra Red
D. Speaker Boundary Interference Response
E. Small Business Interest Rate
21. How much does the Bayh-Dole Act contribute annually to the US economy? (pg. 15)
A. $300 million
B. $950 million
C. $12 billion
D. $32 billion
E. $40 billion
22. What was the primary objective of the Bayh-Dole Act? (pg. 15)
A. Commercial development of intellectual property
B. Investment of pension funds in venture capital companies
C. Gender equality among entrepreneurs.
D. Support for young entrepreneurs
E. All of the above
23. How many business incubators are in the US currently? (pg. 16)
A. 200
B. 1000
C. 3000
D. 7,000
E. 10,000
24. The TEA represents the percentage of adults (18-64) who are starting or running a
new business defined as one that has not paid wages or salaries for more than:
(pg. 23)
A. 32 months
B. 24 months
C. 28 months
D. 36 months
E. 42 months
Open ended
1. Why are small businesses an important consideration for state and federal politicians? (pg.
4-5)
In the U.S. there are more than 33 million or so small businesses, representing 99.9 percent
of total businesses.
Small businesses account for half of the private-sector workers and 39.4% of private payroll
Small businesses generate a third of the U.S.’s total exports
Small businesses create most of the jobs in the US.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
,2. Explain, in your own words, Schumpeter’s view of entrepreneurship’s role in an economy
and society. (pg. 12)
Schumpeter argued that the innovation and technological change of a nation come from
entrepreneurs.
He believed that entrepreneurs are the ones who facilitate the functionality of an economy.
He claimed that by destroying old businesses and creating new ones, entrepreneurs keep the
economy healthy.
3. Describe how Intel and Microsoft became the two major entrepreneurial driving forces that
transformed the U.S. economy in the last quarter of the 20th century. (pg. 6-8)
In 1971, Intel launched the first commercial microprocessor, heralding a new era in
integrated electronics. In 1974, Intel launched the first general-purpose microprocessor,
which was the brain of the first personal computer.
Bill Gates and Paul Allen formed Microsoft where they began developing software for
personal computers. In 1980-81, Microsoft introduced MS-DOS for IBM’s first PC, and
fourteen years later, released Windows 95 in 1995.
4. What was the most critical step in Federal Express’ rapid growth? (pgs. 8 – 9)
In the mid-1970s, Federal Express had taken a leading role in lobbying for air cargo
deregulation that finally passed in 1977.
These changes allowed Federal Express to use larger aircraft and spurred the company's
rapid growth. Today, FedEx ships 15 million packages a day on average and connects overs
99% of the world’s GDP by covering more than 220 countries and territories across the
globe.
5. Give two examples of how companies strengthened their businesses through changes in
regulations. (pgs. 8 – 9)
Federal Express had taken a leading role in lobbying for air cargo deregulation that finally
passed in 1977. These changes allowed Federal Express to use larger aircraft and spurred the
company's rapid growth
Herb Kelleher, the charismatic co-founder of Southwest Airlines, is often credited with
triggering airline deregulation by persevering with his legal battle to get Southwest airborne,
in the face of fierce legal opposition from Braniff, Trans-Texas, and Continental Airlines.
6. Why is the Internet one of the most revolutionary developments in the history of
commercial innovation? (pg. 9 – 10, 16)
The internet provided businesses with millions of flexible spaces in which to conduct
commerce.
Small businesses gained a platform that allowed them to compete with multi-billion
corporations.
The internet spurred the proliferation of information. Any entrepreneur now has access to
virtually any information he or she needs.
7. Why was the Netscape’s IPO so popular and successful? (pgs. 12-13)
Netscape Navigator was an instant hit with users, gaining 75 percent of the browser market
within four months of its introduction.
Netscape was only 16 months old when it went public in August 1996.
It made Jim Clark the first Internet billionaire.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
, Venture capitalists saw huge potential in Netscape, accelerating the company’s
commercialization.
8. Which factors led to American entrepreneurial revolution? (pg. 12-13)
In the 1960s a generation of Americans who had no first-hand memory of the Great
Depression and did not believe an economy should be built on corporations only came of
age.
In the 1970s, Washington, after bailing out Penn Central, Lockheed, and Chrysler, started to
pay more attention to small businesses
Congress took steps in 1978 to stimulate the venture capital industry, which, in turn, led to
more investments in start-ups
Bayh-Dole Act, implemented in 1980 fostered the growth of technology-based small
businesses by allowing them to own the patents that arose from federally sponsored research
9. What was the effect of the Bayh-Dole Act? (pg. 15)
10 years ago, The Economist estimated that Bayh-Dole had created 2,000 new companies
and 260,000 new jobs and had contributed $40 billion annually to the U.S. economy. More
progress has been made since then.
More than 1,200 universities have offices for technology transfer.
10. Who, in your opinion, would benefit from the creative destruction process and
why? (pgs. 17)
Economy – stays healthy and primed for growth.
The customer – new ventures create better products.
The companies themselves – the threat of creative destruction leads companies to constantly
improve their operating and production processes and leads to faster learning curves.
11. Describe the three main measures of entrepreneurial activity. (pg. 22-24)
TEA (total entrepreneurial activity) is the percentage of the adult population that is either
nascent entrepreneurs or baby businesses owner-managers or both. It measures the
overall entrepreneurial activity of a nation.
TEA (opportunity) is the percentage of the adult population that is trying to start or has
started a baby business to exploit a perceived opportunity. They are classified as
improvement-driven opportunity motivated if they additionally seek to improve their
income or independence through entrepreneurship.
TEA (necessity) is the percentage of the adult population that is trying to start or has
started a baby business because all other options for work are either absent or
unsatisfactory.
12. Explain what the Global Entrepreneurship Monitor (GEM) is. (pg. 14-17)
It was conceived in 1997 to study the economic impact and the determinants of national-
level entrepreneurial activity.
It is the largest coordinated research effort ever undertaken to study population-level
entrepreneurial activity.
GEM has become the world’s most influential and authoritative source of empirical data
and expertise on the entrepreneurial potential of nations.
Zacharakis, A., Corbett, A. & Bygrave (2025) Entrepreneurship, 6th Edition. Hoboken, NJ: Wiley.
