Entrepreneurship, business opportunity questions... 10 points for best answer?

These are 3 questions that I would like to ask. 10 points for the best and comprehensive answers.

1) entrepreneurship- what are the reasons that:
a)innovation
b)customer focus
are crucial in small business (as compared to large organizations)?

2) What are the main factors that determine a good and viable business opportunity to invest in? What are the things that should be considered?

3) Sustainability of competitive advantage starts from from growth, maturity and then maintaining it. How do we derive and then sustain competitive advantage?

I have my own answers but I would like to see any variety of opinions about it. Thanks for any feedback!

Sorry, it is not homework actually. I was planning on to open a debate about entrepreneurship and its aspects for my class, and would like to see which aspect of a small business can stimulate deeper debates =] Thanks for answering.

My answers:
1) Innovation and customer focus are key to small businesses because often times, they are the advantages a small business has. Small businesses are more open to change, they are more flexible because there is no board of directors or upper management to run ideas through, and, small businesses are often better run because the owner (the only person who really, truly cares in a company), is close to customer service. The owner is there to manage and insure quality customer care.

2) Good investments are often rare, if a big group of people are aware of the investment, it often times dilutes the value of it. There must be a growing trend or need for a product or service, or if not, for example, the real estate market is a good BUYERS market, but not sellers, one doesn't want to enter a stagnant industry. There should usually be an increase or slump for gain.

3) Keeping profit margins tight is always a stable way to grow and mature a business, if your competitors can't offer at least a close price, you will be in an advantageous position. The consumer is seriously swayed by price, unless one's products or services are for the well-to-do or upperclass. Another way to grow and mature a business is innovation. If no other business can offer your good, you have an advantage and so long as there is the awareness and need from consumers of your product, your business should prosper. One more factor is excellent customer service. I, like I think many others, would pay slightly more for a product if I knew I would have extraordinary customer service. These previously mentioned ways of growing and maturing I believe would also sustain a competitve advantage over competitors. Above all, work hard and good luck out there.

P.S. -If this was not relevant or unclear, I apologize for wasting your time. I am only 16 years old but my parents own a small business and I am an avid reader of Entrepreneur and Inc. Magazine, this is where my experience comes from, not actual job experience. Good luck and thanks for the oppurtunity to let me answer your question.

how about doing your own homework? 10 points for that.