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Chapter Seven
Small Businesses and Entrepreneurship: Economic Rocket Fuel
Review Questions
1. Review the benefits an entrepreneur might seek in starting a new business. Which
benefits are most appealing to you? Why?

The key benefits that entrepreneurs might seek in launching a new business are greater
financial success, independence, flexibility, and challenge (although a smaller segment of
entrepreneurs—at least in the U.S.—simply seek survival in the face of few other
alternatives). Student answers will vary in terms of which benefits are most appealing,
but most younger students seem to cite greater financial success, while older students
often gravitate more towards flexibility.

BUSPROG: Analytic
Bloom’s: Knowledge and Comprehension
Topic: Launching a New Venture: What’s in It for Me?
Difficulty Level: Easy
Learning Objective: 7-1

2. Do you recognize any of the entrepreneurial personality characteristics in yourselves?

Which ones? Do you think it’s possible for a person to develop the characteristics that he
or she lacks? Why or why not?

Answers will clearly vary regarding which entrepreneurial characteristics students

recognize in themselves. While their answers will also vary regarding whether a person
can develop these characteristics, a number of experts believe that—to a significant
extent—this is indeed possible.

BUSPROG: Analytic
Bloom’s: Knowledge and Analysis
Topic: The Entrepreneur: A Distinctive Profile
Difficulty Level: Easy
Learning Objective: 7-2

3. What role does failure sometimes play in entrepreneurial success? What can an
entrepreneur gain from failure?

Failure can play a key role in entrepreneurial success by providing valuable lessons
about what not to do and by spurring creativity in the effort to recover. Experience with
failure can also strengthen other key entrepreneurial characteristics such as self
reliance. Increasingly, the stigma of failure has diminished with recognition that people
who have experienced failure may be more likely to eventually succeed because they are
willing to take risks. Some students may point out that business icons such as Walt Disney

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 and Steve Jobs experienced dramatic failure at various junctures in their careers, but
were clearly successful overall.

BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Entrepreneurial Characteristics
Difficulty Level: Easy
Learning Objective: 7-2

4. How could you convince family and friends to support your new business launch? What
kind of assurances would they need? What could you do to keep the funding
relationships professional? If you were to launch a new business would you start from
scratch, buy an established independent business, or buy a franchise? Why or why not?

Students will have different ideas on how to approach this, but the possibilities include
developing a strong business plan, sharing research results, offering to share profits, and
establishing a cutoff point for discontinuing the business if profits don’t materialize. Most
experts recommend keeping funding relationships professional by documenting the
agreements in detail and sticking to the terms. As students explore how they will launch
a new business, their answers should include insights about how their own character
compares to the approach they favor or reject. For instance, students with a high
tolerance for risk might be more interested in starting from scratch than in buying a
franchise.

BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Finding the Money: Funding Options for Small Businesses
Difficulty Level: Easy
Learning Objective: 7-3

5. Beyond personal resources, what are other funding options for small businesses? Why
don’t more entrepreneurs tap into these resources?

Other funding options for entrepreneurs include loans, angel investors, and venture
capital firms. But many entrepreneurs—especially at the initial launch of their
business—find trouble tapping into these resources since they lack the track record that
many lenders or investors require. In some cases the Small Business Administration can
help firms jump this hurdle by partially guaranteeing loans from commercial lenders.
The SBA also has a microloan program that can help start-up businesses through
community nonprofit organizations.

BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Finding the Money: Funding Options for Small Businesses
Difficulty Level: Easy
Learning Objective: 7-3

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 6. Compare the opportunities and threats that small businesses face. Which opportunities are
most compelling? Which threats are most intimidating? Why?
Opportunities:
• Market niches: Because of their size, many small firms are uniquely positioned to
exploit small but profitable corners of the market
• Personal customer service: With a small customer base, small firms can develop
much more personal relationships with individual customers.
• Lower overhead costs: With entrepreneurs wearing so many hats, many small
firms have lower overhead costs.
• Technology: The Internet has played a powerful role in opening new
opportunities for small businesses.

Threats:
• High risk of failure: Starting a new business involves a lot of risk, especially in
the first five years.
• Lack of knowledge and experience: Entrepreneurs often have in-depth knowledge
in a specific areas, but lack expertise in running a business.
• Too little money: Lack of sufficient start-up money is a major issue for most new
firms.
• Bigger regulatory burden: Complying with federal regulations can be an
overwhelming challenge for small firms.
• Higher health insurance costs: The costs for small health plans are much higher,
making it tough to offer the coverage that top employees expect.

Student answers will differ regarding which opportunities are most compelling, but many
seem to cite technology. And most students find too little money to be the most daunting
threat.

BUSPROG: Analytic
Bloom’s: Comprehension and Analysis
Topic: Opportunities and Threats for Small Business: A Two-Sided Coin
Difficulty Level: Moderate
Learning Objective: 7-4

7. Review the definition of niche marketer, and cite three examples of niche marketers.
How has technology affected niche marketing?

A niche marketer is a firm that targets a sparsely occupied space in the market.
Examples include Anything Left Handed (products for left-handed people), Kool Dog
Kafe (gourmet dog treats), and Scrappin’ Twins (scrapbooking products for mothers of
twins and triplets). Students will most likely cite niche marketers that are local to your
campus. Technology—particularly the Internet—has played a powerful role in supporting
niche marketers by expanding their reach. Scrappin’ Twins, for instance, may not have
gotten off the ground with only its local market of mothers of twins and triplets with an
intense interest in scrapbooking. But nationwide—worldwide—there’s a big enough
market to support a small business.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Opportunities and Threats for Small Business: A Two-Sided Coin
Difficulty Level: Moderate
Learning Objective: 7-4

8. If you were to launch a new business, would you start from scratch, buy an established
independent business, or buy a franchise? Why?

Student responses to this will vary, but most students seem to prefer the idea of starting
from scratch, despite the higher risk—creating their own concept seems to hold
enormous appeal. A frequent exception is the children of parents who own franchises.
Having seen the profit potential of franchises first hand, they often gravitate in that
direction.

BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Launch Options: Reviewing the Pros and Cons
Difficulty Level: Easy
Learning Objective: 7-5

9. What are the key contributions of small business to the U.S. economy? Rank the benefits
in terms of importance, and provide the reasons for your ranking.

Key contributions:
• Creating new jobs: Small businesses with employees generate about 70% of the
new jobs in today’s economy.
• Fueling innovation: Small businesses develop innovations at about twice the rate
of their large business counterparts.
• Vitalizing inner cities: Small businesses comprise more than 99% of inner city
establishments, providing a springboard for development.

Student opinions will differ about which contribution is most important, although most
seem to rank new jobs at the top.

BUSPROG: Analytic
Bloom’s: Comprehension and Evaluation
Topic: Small Business and the Economy: An Outsized Impact
Difficulty Level: Moderate
Learning Objective: 7-6

10. What factors account for the dramatic differences in entrepreneurship rates around the
world? Do you think entrepreneurship will continue to grow worldwide? Why or why
not?

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Factors that account for much of the differences in entrepreneurship rates:
• Per capita income: In very low income countries the entrepreneurship rate is
high because many people have no other option.
• Opportunity costs: Entrepreneurship rates tend to be lower in countries where
employment protection and unemployment insurance is strong.
• Cultural/political environment: Extensive regulation can be a barrier to
entrepreneurship, while government and cultural support can be a boon.

Many experts believe that entrepreneurship rates will continue to grow worldwide given
the growth of market economies and free trade, the dramatic, high-profile successes of
entrepreneurs in the last couple of decades, and the growing worldwide Internet
penetration rate.

BUSPROG: Analytic
Bloom’s: Comprehension and Evaluation
Topic: Entrepreneurship Around the World
Difficulty Level: Moderate
Learning Objective: 7-6

Application Questions
1. A huge number of successful businesses—such as Apple, The Cheesecake Factory, and
eBay—were built around the personal passions of their founders. Consider your own
personal passions. What do you love to do? What are you great at doing? Can you shape
any of your interests into a business opportunity? Why or why not? Be sure to think big.
For instance, if you love hanging out with friends and listening to music, a club
promotion business might make sense for you. Write a one–two page paper outlining the
specific steps you need to take over the next few years to make your “dream business”
real?

Answers will clearly vary depending on student interests, but responses should include a
close tie between personal passions and business opportunities. Possibilities for how to
make the business actually happen include doing research, developing a business plan,
seeking an internship or job opportunity in the field, and networking with as many
possible contacts as possible.

BUSPROG: Analytic and Communication

Bloom’s: Comprehension and Evaluation
Topic: Launching a New Venture: What’s in It for Me?
Difficulty Level: Challenging
Learning Objective: 7-1

2. Identify a person in your neighborhood who started a business from scratch, a person
who bought an existing business, and a person who bought a franchise (your local
chamber of commerce can probably help you identify candidates). Interview each of the

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 entrepreneurs to learn more about their experiences. What were the pros and cons of each
approach? Would they use the same approach if they could do it over again? Why or why
not? What are their long term goals? How did the actual experiences of the entrepreneurs
you interviewed compare to the material in the book? Did you hear anything surprising?

Responses will vary significantly, but students will likely find a strong correlation
between the actual experiences of each type of business owner and the issues outlined in
the chapter.

BUSPROG: Analytic and Communication

Bloom’s: Comprehension
Topic: Small Business and Entrepreneurship: Economic Rocket Fuel
Difficulty Level: Challenging
Learning Objectives: 7-1 - 7-6

3. Imagine for a moment that you’ve finally taken the leap and launched your dream
business – whatever it may be – hair salon, retail shop, restaurant, tattoo parlor, or
anything else. Suddenly you find that friends and family are coming out of nowhere in
“desperate” need of your product or service, and everyone expects a discount. What will
your discount policy be (if any), and how will you communicate it?

Responses will vary, but students should understand that the most effective way to
communicate their policy would probably be face-to-face, rather than in writing or
through employees, in order to maintain flexibility and minimize relationship issues. To
avoid people taking advantage of them, students might want to consider barter as part of
their policy, or at least as a starting point for negotiations.

BUSPROG: Communication, Ethics, Analytic, and Reflective Thinking

Bloom’s: Application, Analysis, and Evaluation
Topic: Opportunities and Threats for Small Business: A Two-Sided Coin
Difficulty Level: Moderate
Learning Objective: 7-4

4. In many developing countries, the majority of citizens make their living through
microenterprises—informal, tiny businesses that barely yield enough to survive. Without
financial services, most of these entrepreneurs find growth simply impossible. Professor
Muhammad Yunus and the Grameen Bank, established in Bangladesh in 1976, stepped
into the gap by providing micro-loans ($50–$500) to the poorest of the poor
entrepreneurs, through village cooperatives that are administered by the people they
serve. The Grameen Bank has been amazingly successful at breaking the vicious cycle of
poverty for its clients. In 2006, Prof. Muhammad Yunus and Grameen Bank received the
Nobel Peace Prize, which sent a message to the world that we cannot have peace if
billions live in abject poverty. The Prize Committee credited Prof. Yunus and Grameen
Bank for showing “that even the poorest of the poor can work to bring about their own
development.” Check out the Grameen Bank story on the Web at

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 www.grameenfoundation.org. Why has the micro lending approach worked so well? Do
you think it would work in poor communities in the United States? Why or why not?

Students will have different ideas about why microloan programs are effective, but most
will probably cite the need for even just a small financial boost to break through poverty,
the importance of community and local leadership, and the value of empowering women.
Students will also have different opinions about whether a similar program would work
in the U.S., but they should certainly consider the difference in the cost of living.

BUSPROG: Analytic
Bloom’s: Comprehension and Evaluation
Topic: Entrepreneurship Around the World
Difficulty Level: Challenging
Learning Objective: 7-6

5. The Small Business Administration (SBA) maintains a rich, vibrant website, and
supports a number of high impact programs to support small business growth. In fact,
every state has at least one local SBA office. Log onto the SBA website at www.sba.gov,
and spend a few moments browsing. Be sure to check out the sections on business
opportunities and training. Then find the page for the SBA office nearest your school.
How would this information be helpful for local small businesses? If you started a
business, would you personally be likely to use any of the SBA resources? If so, which
ones? Why do you think the government spends so much money supporting small
business growth by providing this array of resources?

Here, too, responses will vary, especially with regard to how the SBA resources would be
helpful. Answers might include loans, consulting, training, networking, and information
about issues from how to write a business plan to how to comply with federal regulations.
The government spends so much money supporting small business growth in order to
increase the level of competition in our economy, which ultimately increases the standard
of living by generating more choices, better quality, and better prices.

BUSPROG: Analytic
Bloom’s: Comprehension
Topic: Small Business and the Economy: An Outsized Impact
Difficulty Level: Moderate
Learning Objective: 7-6

Team Project
Making Lemonade from Lemons

Take a moment to write down 3 to 5 things that you find frustrating about daily life on a fairly
regular basis (e.g., “It takes forever to find a parking spot on campus,” “I hate waiting online at

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
the post office,” “My roommate borrows my favorite jeans way too often.”). Be honest . . . and
use real problems.

Then break into groups of 3 to 5 students, and exchange papers. Take about 3 minutes to choose
one problem on the list that you received, and to develop a product or service idea that could
solve that problem. Then, together with your team, review each person’s idea and choose the one
with the most potential. Working together take twenty minutes to further develop the idea into a
business concept. Create a logo and a slogan for your business, and present your idea to the class,
along with the problem that your business will solve. After you’ve heard the ideas from each
team, vote with your classmates for the best new business idea.

The responses to this challenge will clearly vary, but typically are quite creative.

BUSPROG: Analytic
Bloom’s: Synthesis
Topic: Small Business and Entrepreneurship: Economic Rocket Fuel
Difficulty Level: Moderate
Learning Objectives: 7-1- 7-6

Case Connections
Girl Scout Cookies build girls of courage, confidence, and character…Let’s take a look.

Thin Mints, Samoas, Tagalongs, and Do-di-dos…just reading the names probably makes your
mouth water for Girl Scout Cookies. Once a year, girls of all ages fan out across the country
selling tasty boxes of cookies to neighbors and friends in an effort to raise money for their Girl
Scout troops. Local Girl Scout councils set the price per box for the cookies, which ranges from
$3.50 to $4.00. About 70% of the proceeds stay in the local Girl Scout council and with troops
to provide a portion of the resources needed to support Girl Scouting in that area. The remainder
goes to the baker to pay for the cookies. Nationwide an average of 10-20% of the purchase price
goes to the individual troop selling the cookies to fund their activities. None of the money goes
to the national Girl Scouts organization or to any other group, unless the local troop decides to
spend it in that manner. Demand for Girl Scout cookies tends to be high, with many customers
eagerly anticipating the annual sale. Nevertheless, not everyone believes that Girl Scout cookie
selling is a net positive business experience for the girls who participate. Some of the key pros
and cons:

In favor of Girl Scout cookie sales:

• The program is designed to help girls learn five critically important skills that could help
them become better entrepreneurs at the appropriate time. The five skills: goal setting,
decision making, money management, people skills, and business ethics
• Most troops encourage the girls themselves to do everything possible to run the sales to
maximize hands-on experience and learning.
• The experience helps them learn the fundamentals of the retail sales process.

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 • Many local Girl Scout councils choose to collect donations of cookies for military
personnel serving overseas, learning firsthand the potential power of socially responsible
business.

Against Girl Scout cookie sales:

• Positioning young girls as cookie hucksters, exploiting family and friends for profits,
does not showcase either them or business in a positive light.
• Girl Scouts have been spotted engaging in somewhat shady sales tactics (e.g. “Buy one
box for $4, or take today’s special, which is five boxes for $20”), encouraged by adult
leaders.
• Since childhood obesity remains a significant long term threat to the health of America’s
youth, does selling caloric treats continue to make sense as a fundraiser?

You decide:

• Overall, do you think the Girl Scout cookie program is positive or negative for the girls?
(As you answer the question, try to leave aside your feelings about the cookies
themselves, which almost everyone seems to love.)

Answers will vary based on student values and experiences.

BUSPROG: Ethics, Analytic, Reflective Thinking

Bloom’s: Analysis, Synthesis, Evaluation
Topic: Small Business and Entrepreneurship: Economic Rocket Fuel
Difficulty Level: Moderate
Learning Objectives: 7-1- 7-4

Sources: Girl Scout Cookies The Five Skills and FAQs, Girl Scouts USA website,
http://www.girlscouts.org/program/gs_cookies/the_five_skills.asp, and
http://www.girlscouts.org/program/gs_cookies/faq.asp accessed May 5, 2013

© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Kronstadt, 26, 71
“Krugom”, 215
Krymov, General, 153
Kursk, 137, 367, 370, 371
Kushelev, 201

Lancers, 81
Latvians, 299, 313
Lechitsky, General, 113
Lenin, Nikolai (Vladimir Ilyich Ulianov, previously Tsederbaum or
Tsederblum) 68, 128, 189, 199, 223, 224, 242-45, 253, 293,
300, 302, 308, 312, 313, 362, 379
Lermontov monument, Penza, 367
Liberty’s of London, 18
Life Guards, 155
Linevich, Captain, 159
Lisa, 241
Liteiny Arsenal, St. Petersburg, 148
Litovsky Regiment, 154
Livadia, Yalta, 40-42, 44, 46, 48, 50, 62, 75, 96, 134, 238
Louis IV, Grand Duke of Hesse-Darmstadt, 35
Louis XVI, King of France, 198, 199
Louise, Queen of Denmark, née Princess of Hesse-Cassel, 28
Ludendorff, General, 107, 140, 141, 235, 246, 293, 312
Lutheran Church, Tobolsk, 208
Lvov, Prince George Evgenievich, 157, 158, 192
Lyons, 6, 197
Makarov, Commissar, 173, 180, 203, 207, 208, 211-13, 216, 218
Maklakov, A. A., 369
Mannheim, 35
Marat, 199
Marie, Queen of Rumania (subsequently Dowager Queen,
previously Crown Princess), née Princess of Great Britain, 76-
78
Marie Alexandrovna, Empress, née Princess of Hesse-Darmstadt,
77
Marie Alexandrovna, Duchess of Saxe-Coburg and Gotha
(subsequently Dowager Duchess), Princess (Alfred) of Great
Britain, Duchess of Edinburgh, née Grand Duchess of Russia,
77
“Marie-Anastasia Workshop”, 102
Marie Antoinette, Queen of France, née Archduchess of Austria, 6,
197, 198
Marie Feodorovna, Dowager Empress, née Princess Marie
Dagmar of Denmark, 6, 13, 14, 27-30, 35, 39, 48, 54, 66-68,
75, 81, 85, 87, 91-93, 95, 104, 109, 126-28, 131, 152, 163,
178, 193, 194, 220, 221, 230, 239, 240, 245, 331, 360, 368
Marie Nicholaevna, Grand Duchess, 3-5, 7, 10-13, 15-18, 26, 32,
34, 35, 40, 41, 51, 57, 64, 65, 67, 80, 87, 89, 90, 103, 108,
135, 137, 143, 149-51, 156, 157, 161, 164, 174, 187, 193,
194, 196, 198, 208, 216, 227, 229, 241, 248, 250-52, 254-59,
269, 270, 272, 273, 275, 276, 293, 299, 308, 312, 341
Marie Pavlovna (“the younger”), Grand Duchess, subsequently
Princess (William) of Sweden, Duchess of Södermanland,
then Princess (Serge Mikhailovich) Putiatin, 135
Marie Pavlovna (“the elder”), Grand Duchess (Vladimir
Alexandrovich), née Duchess of Mecklenburg-Schwerin, 138,
155-57
Marie Thérèse, Princess (Louis Antoine) of France, Duchess of
Angoulême, née Princess of France, 6, 197, 198
Markov, 292
“Marseilles”, 33
Martha and Mary, Convent of, Moscow, 93
Martov (Tsederbaum, Tsederblum?), 223
Marushka, 358, 359, 361
Mary, Queen of Great Britain (subsequently Dowager Queen,
previously Princess of Wales), née Princess of Teck, 29, 33,
36
Massandra, 42, 49
Mebus (or Nebus), 303, 304
Medviedev, 299
Meller-Zakomelsky, Baroness, 205
Metropolitan’s residence, Tobolsk, 230
Michael I Feodorovich, Tsar, 69, 70
Michael Alexandrovich, Grand Duke, 70, 137, 143, 155, 157, 165,
167, 168, 193, 194, 205, 312, 369
Mieshkovsky (Hollender), 223
Mikhailov, Moscow, 347
“Mikhailov, Moskva” (label), 347
Mikhovsky (Goldenberg), 223
Mirabeau, 199
Mirbach, Count von, 235, 254, 273, 274, 293, 312
Mogilev, 20, 96, 99, 102, 113-15, 122, 128-30, 133, 134, 140, 152,
154, 162, 163, 225, 256
Moltke, General von, 246
Monomakh, 70
Mordvinov, Colonel, 127, 164, 165, 168
Moscow, 19, 20, 50, 61, 67, 68, 71, 84, 85, 92, 115, 119, 235, 245,
254, 257, 273-75, 292-96, 301, 302, 311-13, 347, 369
Mossolov, General A. A., 168
Mountbatten, see Battenberg
Mramorskaya, 353, 366
Mstislavsky, 178, 179
Muraviev-Amursky, Count, 205
Murmansk, 179, 188

Nagorny, Klementy, 8, 10, 99, 122, 211, 219, 232, 243, 255, 256,
259, 260, 265, 267-69, 276, 281, 284, 286, 291
“Naimichka” (The Maid), 256
Nakhichevan, General the Khan, 163
Napoleon I, Emperor of the French, 54, 192, 222
Narishkin, Cyril, 164, 168
Narishkina, Mme. Elizabeth A., 43, 45, 51, 93, 102, 104, 115, 118,
151, 164, 176, 309
Narodny Dom, St. Petersburg, 46
“Nerukotvorenny Spas”, 315
Neva River, 21, 95, 135, 223
Nevsky Prospect, St. Petersburg, 159
Nicholai Mikhailovich, Grand Duke, 137, 312
Nicholai Nicholaevich, Grand Duke, 95, 127, 134, 137, 153, 154,
157
Nicholas I Pavlovich, Emperor, 25, 135, 167
Nicholas II Alexandrovich, Emperor, 3, 5-14, 19-23, 25-28, 30, 31,
33, 35, 36, 38-40, 42-49, 52-58, 60-62, 66, 67, 69, 70, 75, 78-
88, 90-109, 111-31, 133-38, 140-42, 145-49, 152-57, 159-69,
 173-80, 182-202, 204-08, 211-14, 216-26, 228, 229, 231, 232,
234-40, 242-54, 256, 257, 259, 267, 269-88, 291-303, 305-17,
325, 327-29, 338, 341, 343, 344, 351, 355, 360, 369, 377,
379
Nicholas Concert Hall, Winter Palace, St. Petersburg, 84
Nicholas Garden, Simbirsk, 363
Nicholas Institute for Girls, Reval, 54
Nicholas Palace, Moscow, 71
Nicholas railway, 96
Nikita Alexandrovich, Prince of Russia, 19, 230, 369
Nikitsky Botanical Garden, near Livadia, 47
Nikolai (friend of rescuer), 363-68, 370-77
Nikolsky, 216, 219-220, 233, 236, 243
Nilov, Captain, 113, 127, 128, 152, 153, 168, 183
Nina Georgievna, Princess of Russia, subsequently Princess (Paul
Alexandrovich) Chavchavadze, 50
Niva, 120
Nizhni Novgorod, 68
North Sea, 51, 76, 136
Norway, 29
Novgorod, 132

Ob River, 237
“Obiednitsa”, 306
“Obiednya”, 306
Obolensky, Princess Elizabeth N., 33, 71, 148
Odense, Bay of, 27
Odessa, 79
Okhrana, 43
Oleg Constantinovich, Prince of Russia, 110
Olga Alexandrovna, Grand Duchess, Duchess (Peter
Alexandrovich) of Oldenburg, then Mme. Nicholai
Alexandrovich Koulikovsky, 29, 78, 85, 90, 91, 95, 126, 127,
177, 194, 220, 230, 235, 240, 245, 360, 369
Olga Constantinovna, Queen of the Hellenes (subsequently
Dowager Queen), née Grand Duchess of Russia, 30, 119,
186
Olga Nicholaevna, Grand Duchess, 3, 6, 7, 10, 11, 14, 16, 17, 19,
26, 32, 34, 35, 51, 57, 60, 64, 65, 67, 76-78, 86-92, 98, 100-
03, 111, 114, 123, 124, 127, 130, 133-35, 137, 140, 143, 145,
151, 156, 174, 190, 197, 217, 227-29, 236, 240, 247, 248,
254, 256, 267, 268, 270, 271, 282, 287, 289, 307, 309, 311,
312, 314, 329
Omsk, 235
Oranienburg Forest, near Berlin, 36
Orbeliani, Princess Sonia I., 116, 130
Oreanda Chapel, Oreanda, Crimea, 208
Orlov, Prince, 154
Orlova-Davydova, Countess, 221
Osborne House, Isle of Wight, 32, 33
Oslo (Christiania), 29
Ostrogorsky, Dr., 57
“Otsu mark” or “Otsu scar”, 292, 293, 317

Palei, Prince Vladimir Pavlovich, Count of Hohenfelsen, 137, 312

Palei, Princess Olga Valerianovna, Countess of Hohenfelsen,
previously Mme. Erich von Pistohlkors, née Karnovich, 136
Palm Sunday, 185, 273
Pankratov, Commissar, 216, 219, 221, 233, 236
Paul I Petrovich, Emperor, 140, 144
Paul Alexandrovich, Grand Duke, 136-38, 150, 155, 161, 312
Pavlovsk, 13
Pavlovsky Regiment, 81
Pelts, Governor of Mogilev, 127
Penza, 367
Pergolovo Forest, near Tsarskoe Selo, 160
Perm, 107, 204, 205, 246, 369
Persia, Shah of, 190
Persia, 61, 95, 134, 137, 160, 161, 294
Peter I Alexeevich, the Great, Emperor, 25, 54, 117, 253
Peter Alexandrovich, Duke of Oldenburg, 91
Peter Nicholaevich, Grand Duke, 239
Peterhof Palace, 3, 25, 26, 53, 80, 131
Petrov, Peter Vasilievich, 75
Petrovsky, 221
Petrovsky, Shura, 221
Pilsudski, General, 235, 242, 302
Plevitskaya, Mme., 51, 69, 89
Pobedonostsev, Konstantin, 20
Poincaré, Raymond, 80
Pokrovskoe, 207
Poland, 54, 60, 85
“Polar Star”, 27, 291
Polish Army, 69
Polupanov, 129
Port Arthur, 5
Potsdam, 36, 37
Pravosudovich, 220
Preobrazhensky Regiment, 27, 81, 164, 300
Prosphora, 306, 314
Provisional Government, 145, 149, 150, 158-60, 163, 165, 166,
168, 174, 180, 191, 193, 221, 222
Prussia, 106
Pskov, 162, 163, 165
Purishkevich, 135
Putiatin, Prince, 157, 159

Radziwill, Princess, 156

Ramona, 18
Rasputin, Grigory Efimovich, 19, 20, 44, 58, 59, 102, 109, 112,
116, 118-20, 122-24, 127, 130, 135-37, 139, 140, 160, 199,
207, 227, 241, 272, 292, 343
Rasputina, Matriona Grigorievna (subsequently Mme. Solovieva),
135, 227, 241, 242, 292
Red Square, Moscow, 253
Redeemer, Convent of the, Simbirsk, 363
Resin, General, 113, 159
Reval, 29, 30, 54
Rickel, General, 129
Riepin, 17
Rodionov, Commissar, 257, 258, 260, 265, 266, 272
Rodzianko M. V., 138, 143, 154, 155, 159, 192
Roman Catholic religion, 301
Romanov, Feodor Nikitich (Patriarch Philaret), 69
Romanov dynasty, 20, 66, 69, 70, 78, 138, 140, 194, 206, 244,
308, 312, 315
Romanov Institute of Physical Therapy, Sevastopol, 114
Romanovsky, Prince George Maximilianovich, Duke of
Leuchtenberg, 134, 164
Roosevelt, Theodore, 93
“Rossia”, 206, 260, 265
Rostislav Alexandrovich, Prince of
Russia, 19, 230, 369
Rostovtsev, Count J. N., 195
Rovno, 360
Royal Naval College, Dartmouth, 33
Royal Yacht Club, Cowes, Isle of Wight, 32, 37
Rumania, 63, 76, 79, 370, 374
Russian Army, 130, 141, 235, 243, 360
Russian Navy, 5, 27
Russian Orthodox religion, 157, 165, 208
Russian Red Cross, 98, 103-05, 135, 146
Russian Revolution, 109, 198, 300
Russo-Japanese War, 23, 43, 44, 80, 92, 105, 128
Ruzsky, General, 113, 152-56, 162, 163, 165, 168, 175, 183, 199,
243

Sablin, 164
Sadovaya Avenue, Penza, 367
Sadovaya Avenue, Tsarskoe Selo, 367
St. Alexius, 60
St. Andrew, Order of, 66
St. Catherine, Order of, 66, 159
St. Feodor, 69
St. George, the Great Martyr, 166
St. George Cross, 130, 232, 360
St. George decorations, 232, 379
St. Job, 70
St. John, 280
St. Mitrophanes, Convent of, Voronezh, 368
St. Nicholas, 113
St. Petersburg (subsequently Petrograd, now Leningrad), 5, 19,
21, 23, 43, 46, 49, 61, 66, 67, 71, 81, 84, 90, 92, 98, 104, 106,
108, 111, 118, 119, 134, 135, 137-39, 141, 143, 147, 148,
152, 154, 155, 157, 158, 162, 163, 167, 168, 178, 184, 190,
212, 214, 220, 221, 253, 292, 302
St. Tatiana, 232
St. Vladimir, 360
Sts. Peter and Paul, Cathedral of, St. Petersburg, 46, 49, 95
Sts. Peter and Paul, Fortress of, St. Petersburg, 5
Sandringham, Norfolk, 131
Sarajevo, 79, 82
Sazonov, S. D., 84, 147
Schleswig-Holstein, 54
Schneider, Ekaterina, 107, 174, 187, 197, 203, 211, 245, 246, 250,
258, 265, 267, 269
Serbia, 63, 80-83, 146
Serbian, the, 371, 372, 374, 376, 377
Serge Alexandrovich, Grand Duke, 75, 92, 93, 137, 142
Serge Mikhailovich, Grand Duke, 114, 137, 312
Sergievo, 85
Sevastopol, 48, 114, 369
Shcheglov, 120
Sheremetiev, 206
Sheremetiev, Count, 119, 128, 129
Sheremetieva, Countess, 91
Shevchenko, Taras, 256
Shulgin, 155, 158, 162, 243
Siberia, 49, 72, 105, 108, 135, 160, 187, 202, 204-06, 216, 230,
237, 242, 251, 329, 350
“Sibiriak”, 206
Sidniev, Ivan, 211, 249, 273, 281, 284, 286, 291, 308
Sidniev, Leonid, 211, 265, 269, 275, 277, 284, 286, 287, 307, 308
Sigismund, Prince of Prussia, 56
Simbirsk (now Ulianov), 223, 362, 363, 366
Sinai, 61
Sixth Army Corps, 54
Slavs, 54, 84, 294
Soldiers’ Committee, Tobolsk, 215, 229, 230, 234
Soloviev, 227, 228, 241, 242, 292
Spala, 53, 54, 56, 60, 190
“Standard”, 8, 9, 21, 26, 27, 30, 31, 33, 51, 53, 76, 164, 183
Stenbock-Fermor, Countess, 205
“Stenka Razin”, 363
Stockholm, 30
Stolypin, Peter Arkadevich, 43
Storozhev, Father, 306, 307, 364
Stroganov, Count, 205
Sukhanov (Himmer), 189, 223
Sukhomlinov V. A., 146, 292
Susanin, 69
Sverdlov, Commissar, Jacob, 274, 299, 308, 312, 313
Svoboda Street, Tobolsk, 211
Sweden, 32, 147, 309
Switzerland, 246

Taganrog, 49
Tambov, 368
Taneev, Alexander Sergeevich, 44, 150, 151
Taneeva, Mme., née Tolstaya, 44, 150, 151
Tartars, 47, 70, 363, 367
Tatiana Nicholaevna, Grand Duchess, 3, 6, 7, 10, 11, 13, 14, 17,
26, 32, 34, 35, 51, 57, 65, 67, 69, 80, 86, 88-90, 92, 98, 100,
101, 111, 123, 135, 137, 143, 156, 174, 177, 187, 190, 197,
226-28, 232, 240, 248, 249, 252, 254, 256, 258, 266, 268,
271, 287, 312, 314, 316, 317, 329-31, 333
Tatishchev, General Count Ilia, 82, 115, 195, 197, 203, 205, 211,
221, 222, 227, 231, 232, 236, 237, 245, 246, 248, 249, 253,
255-57, 259, 265, 267, 269, 270, 304
Tatishcheva, Irene, 240
Tauride Palace, St. Petersburg, 93, 111, 155
Tchaikovsky, 78, 283
Tegleva, Alexandra (subsequently Mme. Pierre Gilliard), 211, 255,
258, 260, 265, 269
Terijoki, Gulf of Finland, 116, 150, 151
Thirteen Years at the Russian Court, by Pierre Gilliard, 199
Thyra, Crown Princess of Hanover, Princess (Ernest Augustus) of
Great Britain, Duchess of Cumberland, née Princess of
Denmark, 29
Tiflis, Georgia, 154
Tischendorff, 61
Tiumen, 205, 206, 235, 255, 257, 266, 268, 272
Tobol River, 207, 231, 265
Tobolsk, 34, 62, 71, 72, 78, 90, 92, 107, 179, 184, 193, 196, 206-
08, 213-16, 219-21, 224, 227-31, 239, 242, 245, 248-50, 260,
267, 269, 270, 272-75, 279, 286, 288, 291-93, 304, 309, 315,
325, 329, 332, 340, 341, 366, 368, 370
Tolstoys, 19, 184
Tomsk, 49, 204, 235, 237, 238
Tomsk Monastery, 238
Tomsk, University of, 204
Trans-Siberian railway, 238
Trans-Baikal, 205
Troitsko-Sergievskaya Lavra, 85
Troitsky Bridge, Neva River, St. Petersburg, 95, 142
Trotsky (Leon D. Bronstein) 68, 128, 189, 199, 223, 242-45, 274,
300, 303, 308, 312, 313, 379
Trup, 211, 265, 269, 275, 279, 280, 284, 307, 317
Tsarskoe Selo, 6, 10, 13, 20, 23-25, 34, 38, 40, 41, 43, 44, 47, 49,
61, 62, 66, 71, 72, 80, 84, 86, 104, 114, 116, 119, 122, 126,
130, 134-36, 139, 141, 143, 144, 149, 150, 156, 159-61, 164,
 168, 169, 175, 184, 186, 187, 189, 200, 202, 208, 212-14,
217, 218, 220, 221, 224, 227, 228, 234, 237, 241, 260, 274,
281, 283, 292, 293, 332, 335, 338, 367, 368
Tsarskaya Pristan, 48, 114
Tsederbaum (Tsederblum?) family, 223
Tula, 369
Tulyatskaya Street, Tobolsk, 208
Tula River, 207
Tutcheva, Mlle., 19, 20, 33
Tutelberg, Miss, 211, 214, 265

Ufa, 309, 362

Ufa River, 362
Uglich, 230
Uglich, Bell of, Tobolsk, 230
Uhlan Guards, 132, 188
Ukraine, The, 104, 147, 222, 256, 300, 359, 375
Uktus, 353, 366
Ulianov, Alexander Ilyich, 128, 245
Ulianov, Vladimir Ilyich (see Lenin, Nikolai)
Ulianov family, 223
Ural Mountains, 22, 204

Vanka, 15, 16
Vasilchikova, Princess Maria, 106, 146, 147, 153
Vasili Alexandrovich, Prince of Russia, 19, 230, 369
Vassiliev, Father (at Tsarskoe Selo), 58, 60, 98, 116, 117, 125,
160, 185
Vassiliev, Father (at Tobolsk), 229, 231, 288
Vatrik, Dr., 301
Vershchinin, 168, 203
Viazemsky, Admiral Prince, 27
Viborg Infantry, 53, 160
Victoria, Princess (Louis) of Battenberg (subsequently
Marchioness, later Dowager Marchioness, of Milford Haven),
née Princess of Hesse-Darmstadt, 6, 35, 109, 159
Victoria, Dowager German Empress, née Princess of Great
Britain, 36, 37, 53
Victoria, Queen of Great Britain, 5, 54, 75, 77, 83, 103, 120, 145,
151, 156, 185, 190, 214, 305
Victoria, Queen of Sweden, née Princess of Baden, 30
Victoria Feodorovna, Grand Duchess (Cyril Vladimirovich),
(previously Grand Duchess of Hesse-Darmstadt), née
Princess Victoria Melita of Great Britain, 76, 77, 151, 156
“Victoria and Albert”, 29, 31
Vigée-Lebrun, Mme., 197
Vishniakova, Maria, 19
Vladimir Alexandrovich, Grand Duke, 156
Vladimir (town), 68
Vladivostok, 204, 224
Volga River, 69, 221, 362, 363
Volinsky Regiment, 154
Volkonsky, Prince, 119, 222
Volkov, Alexei, 211, 259, 265
Volynsky, 206
Voronezh, 368
Vorontsov-Dashkov, Count, 205
Vorontsova-Dashkova, Countess, 51
Vostorgov, 369
Voyeykov, General, 44, 128, 143, 163, 168
Voykov, 143, 242, 260, 270, 280, 292, 302, 303, 308, 312, 364
Vyrubov, 44, 151
Vyrubova, Anna Alexandrovna, née Taneeva, 44, 45, 109, 112,
114-16, 122, 124, 130-32, 134, 135, 150, 151, 160, 174, 176,
196, 220, 227-29, 241, 242, 292, 293, 304, 343

Wagner, Richard, 34, 78

Warsaw, 56, 103
Wight, Isle of, 31
Wilhelm I, German Emperor, 37
Wilhelm II, German Emperor, 6, 30, 31, 36-39, 53, 54, 82, 83, 92,
100, 101, 105, 107, 112, 115, 118-20, 141, 147, 156, 188,
198, 246, 247, 311, 312, 329
Winter Palace, St. Petersburg, 22, 23, 66-68, 84, 92, 160, 222
Witte, Count S. Yu., 43, 92, 93
Wolfsgarten, near Darmstadt, 35
World War I, 48, 54, 156

Xenia Alexandrovna, Grand Duchess (Alexander Mikhailovich),

née Grand Duchess of Russia, 19, 95, 127, 135, 177, 178,
194, 214, 220, 221, 230, 235, 239, 240, 369
Xenia Georgievna, Princess of Russia, subsequently Mrs. William
Bateman Leeds, Jr., now Mrs. Herman H. Jud, 50
Yakovlev, 245, 248, 252, 273, 293, 294
Yalta, 40, 41, 48, 51, 75
Yanin, General, 113
Yaroshinsky, 90, 228, 241, 242, 292, 293
Yaroslavl, 68
Yermak, 230
Youssoupoff, Prince Felix Felixovich, 135, 137, 154, 232
Youssoupoff family, 50, 51, 239
Yuriev-Zakharin, Ivan Nikitich, 206
Yuriev-Zakharin, Vasili Nikitich, 206
Yurovsky, 233, 242, 270, 274-76, 279, 281-84, 288, 291-93, 297-
300, 303-10, 312-14, 316, 317, 327, 329, 360, 365
Yurovsky, Rabbi, 276

Zagorsky (Krachmann), 223

Zamoyski, Count Adam, 157
Zaslovsky, 237-39, 241, 268
Zhukovsky, 23
Znamenie, Our Lady of (Znamensky Sobor), Tsarskoe Selo, 23,
88, 117, 177, 178
Zinoviev (Apfelbaum), 68, 189, 199, 223, 243, 244, 312
 ABOUT THE AUTHOR

The Grand Duchess Anastasia Nicholaevna was born in

Peterhof, Russia, in 1901. A member of a close-knit family,
the Grand Duchess was educated--as were her three
sisters and her brother, the Tsesarevich Alexei--by private
tutors, Russian, English and Swiss.
She accompanied her Family on several trips abroad and
on numerous trips within the country, including extensive
travel in 1913--a year widely celebrated in Russia as the
Three Hundredth Anniversary of the ascension to the
throne of the first Romanov, Michael Feodorovich.
After the escape of the Grand Duchess Anastasia from
Russia--the point at which the present volume ends--she
lived for short periods in Rumania and Yugoslavia and for
many years in the United States, principally in Illinois and
Wisconsin. She is now an American citizen and is
currently living in New York City.
A future volume, on which she is working, will deal with
her life and experiences in the post-escape years.
A lover of animals, the Grand Duchess is now completing
a short book entitled My Friends: the Dogs, all of the
royalties from which will be contributed to animal shelters
and organizations devoted to the health and well-being of
dogs.
The Grand Duchess Anastasia is creating a foundation
which will establish and maintain a museum devoted to
Russian culture and containing a chapel in memory of her
Family. A substantial portion of her royalties from her
autobiography will be turned over to the foundation and to
a very small number of charitable and philanthropic
organizations which she has, for the most part, already
definitively selected.