Assessment tool for validation of young people learners’ competence “Sense of Initiative and Entrepreneurship”
Self-assessment test for young people learners
The aim of the test is to evaluate the adult learners’ competencies developed via non formal training course material in order to validate competence Sense of lifestyle entrepreneurship. This test should be taken before and after the training. The test consists of 30 multiple-choice questions with comprehensive answers. Please select the correct answer(s) to each question. Having completed the test, the system will provide you with the total score (percentage). When taking this test; you will also experience the method of assessment by tests.
After completion of each question an explanation is provided. Explanation comes only in a case of wrong answer. Having completed the test, the system will provide you with the sheet in which you will see your Passing Score (number of questions which your answered correctly) and the Passing Rate (in percentage). See the sample of the table below, which shows that the test is completed successfully if the Passing Rate is not lower than 80% and at least 24 answers are correct.
Please, save test results for further reference.
| Total Questions | Full Score | Passing Rate | Passing Score |
|---|---|---|---|
| 30 | 30 | 80% | 24 |
(1/30) Who is considered to be an Entrepreneur?
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An Entrepreneur is someone who has an idea and is ready to transform it into a business. Additionally, this person is ready to take the necessary risks for his/her vision to become reality. By creating a business, entrepreneurs contribute to economic growth by job creation and growth; foster social and economic cohesion particularly in less developed regions being crucial to competitiveness and productivity improvements; unlock personal potential; satisfy a range of social interests, by making wealth, jobs and diversity of choice for citizens available.
(2/30) Is teamwork important for the growth of a Lifestyle business?
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Every business (either traditional or Lifestyle) through teamwork can receive feedback on the tasks and activities, something critical to achieve productivity and quality. What is more, working with a group of people allow a business to combine a set of skills from different people to reach the Lifestyle business’s goals. What is more, people who work in teams have improved several of their personal skills such as digital skills, learning to learn social and civic competences, sense of initiative, communication, interpersonal relationship, cultural awareness/ expression, problem solving, planning, creativity skills and systematic thinking.
(3/30) What is the entrepreneurial competence?
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A successful entrepreneur should be characterized of a set of entrepreneurial skills divided in four main categories: a) personal characteristics, b) interpersonal skills, c) critical and creative thinking and d) practical skills. Each category is characterized of specific elements as follows:
Personal characteristics of an entrepreneur: visions, optimism, sense of initiative, drive and persistence, risk tolerance, resilience.
Interpersonal characteristics of an entrepreneur: leadership and motivation, communication skills, ability to listen to the others, personal relations, negotiation and ethics.
Critical and creative thinking of an entrepreneur: creative thinking, problem solving, recognizing opportunities.
Practical skills of and entrepreneur: goal setting, planning and organizing, decision making and enjoy learning.
(4/30) What is Life-Style Entrepreneurship?
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A Lifestyle entrepreneur is a person who builds his/her business around his/her life(style) and earns money by doing what he/she loves. Earning money is of course important in this approach but not the main motivation. Lifestyle entrepreneurs value a desired lifestyle over money. A lifestyle goes first before thinking of the ways to establish the business to support the chosen lifestyle.
(5/30) What are the differences between entrepreneurship and lifestyle entrepreneurship?
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Although at a first glance entrepreneurship and Lifestyle entrepreneurship might have a common ground, in reality they have many differences. One of the main differences is that traditional entrepreneurship is based on profit, while Lifestyle entrepreneurship is based on creating a business around your passion and lifestyle. Another important difference is that traditional entrepreneurship focuses on business goal for increasing the profit while Lifestyle entrepreneurship focuses on life goals adaptation of the business around those goals.
(6/30) What are the main principles of running and managing a lifestyle business?
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When you start managing your Lifestyle business you need to define your business mission, understand your customers and develop a marketing strategy.
(7/30) Which of the following are the important components of a business plan?
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When developing a business plan, the most important elements to be taken into consideration and to be included therein are market research, executive summary and mission statement; financial plan; aims & objectives and SWOT analysis.
(8/30) Why Mission Statement is important for newly created Lifestyle business?
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The Mission Statement determines how others see the business, including customers and competitors; explains the reason of the business establishment, provides the standards or ethics of the business and gives a detailed description of the business’s key features and goals.
(9/30) Why SWOT analysis is important in Life-Style Entrepreneurship?
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SWOT analysis allows is a self-reflection list of the personal and business characteristics of a person:
- Strengths
- Weaknesses
- Opportunities
- Threats
By identifying a person’s personal characteristic such as strengths, weaknesses, opportunities and threats help the personal development and growth of a person. The SWOT Analysis could be used as a tool for development of LSE business idea.
(10/30) On which main areas should market research be concentrated?
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Market research is the foundation of every business plan. It provides the essential information required to establish if there is a market for a product/service.
The market research should concentrate on the areas such as: industry, customers, competitors and suppliers, because it is important to know industry background, who are your customer (age, gender, income, culture, lifestyle); and who are your competitors and possible suppliers.
(11/30) Is it important for life style entrepreneurs to realize the value of money?
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Successful entrepreneurs work hard for their money and usually spend it very carefully since money saved goes directly to the bottom line generating more profit. In addition, initial money is needed to cover the business start-up costs. If an entrepreneur does not understand the value of money, it is nearly impossible to succeed as an entrepreneur. Successful entrepreneurs do not over spend when buying materials, they always negotiate for a better price and save money for an unexpected expense or decrease in sales.
(12/30) Are the management skills, such as the ability to plan, organize and manage, lead and delegate, to be result oriented essential to all types of business including Life-Style Entrepreneurship?
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Management skills such as the ability to plan, organize, manage, lead and delegate, analyse, communicate, debrief, evaluate and record are essential to all types of business including Lifestyle entrepreneurship.
(13/30) Is the knowledge on opportunities for personal, professional and/or business activities, and basics of economics, essential for Life-Style Entrepreneurship?
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Opportunities for personal, professional and/or business activities, including ‘bigger picture’ issues that provide the context in which people live and work, understanding of the basics of economics, and the opportunities and challenges including an employer or organization are essential for Life-Style Entrepreneurship.
(14/30) A financial plan is…
- A section of the business plan that presents an overview of the key points in the business plan.
- A section of the business plan that demonstrates the financial viability of your new ventures. Typically, this section includes an Income Statement, Balance Sheet and Cash Flow which show projected revenue, expenses, profit and needed funding for the planning period.
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Yes, the financial plan is part of the business plan that demonstrates the financial viability of your new ventures. Typically, this section includes an Income Statement, Balance Sheet and Cash Flow which show projected revenue, expenses, profit and needed funding for the planning period.
(15/30) Does “Product or Service” needs to be described in a business plan?
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Product or service describes a new business idea, a product or service and explains the problem an entrepreneur aims to solve or the gap that needs to be filled in the market.
(16/30) Why creativity is one of the important entrepreneurship competences?
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Entrepreneurial skills are founded on creativity which includes imagination, strategic thinking and problem-solving, and critical and constructive reflection within evolving creative processes and innovation.
(17/30) How could be used business plan?
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Business plan is used both inside and outside the company. Inside the company, the plan helps to develop a 'road map' to follow in executing its strategies and plans. Outside the company, it introduces potential investors and other stakeholders to the business opportunity. The business plan must also be demonstrated to external stakeholders as a proof that the business can be successful.
(18/30) For which purpose are the initial business finances needed for LSE?
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Initial money is needed to cover the business start-up costs. The amount depends on the circumstances, the nature of the business, location of the business, etc.
These costs may include:
- Equipment
- Supplies
- Insurance
- Rent
- Stock
- Marketing materials
(19/30) The ability to make decisions is important for a self-employed entrepreneur because…
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The ability to make decisions allows choosing between different possibilities, understanding the impact of decision making on yourself and others, making realistic decisions, putting them into practice and reaching conclusions.
(20/30) A successful self-employed entrepreneur has to tolerate risk because…
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A successful self-employed entrepreneurs are open-minded toward accepting the possibility of risks in employment and/or entrepreneurship in order to improve employment situation, to try new jobs or to start own business. It could help clearly understand challenges in self-employment and be ready to deal with them effectively.
(21/30) Are learning and growing important for Lifestyle entrepreneurship?
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The world around Lifestyle entrepreneurship is constantly changing, thus, if you are not ready to adapt and learn new things a Lifestyle entrepreneur then it is most probable that your business will end up failing.
(22/30) Which are the 4 main elements (the 4 Ps) of marketing?
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Marketing is the function of any organization or program whose goal is to plan, price, promote, and distribute the organization’s programs and products by keeping in constant touch with the organization’s various constituencies, uncovering their needs and expectations for the organization and themselves, and building a program of communication to not only express the organization’s purpose and goals, but also their mutually beneficial want-satisfying products” (Philip Kotler).
The 4 Ps are:
-Product: A product can be either a tangible good or an intangible service that fulfills.
-Price: Price determinations will impact profit margins, supply, demand and marketing strategy.
-Promotion: Promotion is a way to disseminate relevant product information to consumers and differentiate a particular product or service. It includes elements like: advertising, public relations, social media marketing, email marketing, search engine marketing, video marketing and more.
-Place: The place is the ideal channels are to convert potential clients into actual clients.
(23/30) What are some of the risks of being a Lifestyle Entrepreneur?
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Every entrepreneur, especially at the beginning of setting up their business, struggle with the financial flows since they are mostly relying on the day to day cash flow of their businesses. Having good problem solving skills can help overcoming this challenge. In addition, one of the main challenges of being a Lifestyle entrepreneur is the fact that you need to be able and to work long hours to ensure that you have achieved your goals. Laying back and working on your own pace might end up with failing as a Lifestyle entrepreneur.
(24/30) What are the benefits of being a Lifestyle Entrepreneur?
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Self-employment is one of the best things we can do in our life so that we can live it the way we want; we can achieve something, have money and be happy and independent. Everyone can manage a business from home; it is effective in terms of time, low cost.
(25/30) Can Lifestyle Entrepreneurship success stories inspire other to start their own businesses?
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Success stories demonstrate the experience of other people and inspire new activities. Critical thinking helps to discover new opportunities for self-employment around own passions, hobbies and lifestyle skills.
(26/30) Can technological advancement influence the development of a Lifestyle entrepreneurship?
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Entrepreneurship (either Lifestyle or traditional), can be greatly benefited from the advantages of the technology. Among other facilities offered by the technological advancement, internet is one of the most important tools for entrepreneurs in developed countries as it increases their capabilities and visibility via social and online networks. Internet allows the possibility to be virtually present in different places, thus, it accommodates the dissemination and promotion of a business model. As a result, the advancement of technology and the smart use of it, is something that affects Lifestyle entrepreneurship to the maximum extend.
(27/30) Is Lifestyle entrepreneurship for everyone?
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Not everyone can become Lifestyle entrepreneurs. It requires specific personal traits, along with the desire to make a business out of one’s passion whether this is for financial or social gain or to prevent isolation. In order to do so, people who are interested in becoming Lifestyle entrepreneurs, need to start setting their own life goals and identifying their (professional) skills and personal needs.
(28/30) Do you think that effective communication, as part of the social competence, is important for becoming a successful entrepreneur because:
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LS entrepreneur cannot work and develop his/her business being isolated. Effective communication is crucial in negotiations and relations with competitors. It is helpful in relations with customers as it helps to understand their needs. Good social skills are necessary in relations with partners, team members as it makes to come to agreements more quickly and facilitates to work more productive.
Social skills are important for developing of LSE.
(29/30) Why social skills, particularly social adaptability, are important in becoming a successful entrepreneur?
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Social adaptability is particularly important for making your business successful. Social adaptability is also relevant to the ability to communicate effectively and negotiating with third parties. This characteristic can become helpful in establishing business contacts and cooperating with people from various backgrounds. Finally, social skills and social adaptability are values for all entrepreneurs as they can help them feel comfortable and adjust to different social situations easily.
(30/30) Please select Lifestyle business example.
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A lifestyle entrepreneurship is usually a home-based business that can be managed in a flexible way to fit in with the entrepreneur’s Lifestyle. Some businesses are run to provide an additional income to a permanent job, while some other to prevent social isolation.