BUS 110 Chapter 6. Entrepreneurship and starting a small business

a business plan is a detailed written statement that describes

1. the resources and qualifications of its owners 2. the target market

learning from others is a useful way to avoid pitfalls when starting a small business. some things you may be told would include?

1. to hire a good lawyer and accountant 2. starting with enough money 3.that finding and retaining good workers is hard

which of the following are good ways to learn how to run your own business

1. work with an successful entrepreneur 2. run a small business during your off hours 3. talk to other business owners

a reason for the growth and success of home-based businesses is that

computer technology has leveled the playing field

A(n)_____________ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product

Entrepreneurial

____________ zones are specific geographical areas to which governments attract private business investment by offering lower taxes and other government support.

enterprise

being self-directed, self- nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n)

entrepreneur

select reasons why people become entrepreneurs

opportunity profit independence

select the characteristics of an entrepreneurial team that will be developing and marketing a new product.

1. each from different areas of business 2. a group of experienced people 3. members have complementary skills and are creative

there are a few hurdles that prevent many small businesses from engaging in the global market. which of the following are examples of such problems?

1. financing is often difficult to find 2. would-be exporters do not know how to get started

it is possible to get started in business by working in a successful one to learn about it and then

1. offering to buy out the owner over time 2.buying out the current owner all at once 3.suggest the owner take a partial retirement so you can gradually take over

all customers with unsatisfied wants and needs who have both resources and the willingness to buy are

a market

small companies started by entrepreneurs may grow into large corporations that employ thousands of people. Match the entrepreneurs below with the corporations they developed

amazon= jeff bezos avon= david mcconnell kodak= george eastman facebook= mark zuckerberg starbucks= howard schultz

a good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which of the following?

cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, appendix

match the goals with the type of business person

entrepreneur= desire to grow business and generate wealth micropreneur= desire to remain small and balance lifestyle with work

_______________ help the country prosper by taking risks and creating thousands of jobs that generate wealth and strengthen the economy

entrepreneurs

the SBA determines whether a business is considered "small" only after analyzing how a particular business measures up compared to other businesses in its _________

field

___________________ are creative people who work as entrepreneurs within corporations

intrepreneurs

entrepreneurs start a business with the desire to grow the business and generate wealth while _____________ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

micropreneurs

there are 27.8 million_____________ in the united states, accounting for more then 50 percent of the GDP

small businesses

david opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. when josie requested to work as an apprentice, david was very willing. before long josie was able to tun the store without any help. this is an example of how:

apprenticeship can benefit both the business owner and the apprentice

it is extremely important to develop a__________ ___________ before going to the bank for a loan. because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

business plan

planning, _______________, keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.

financing

Some common causes of small business failure include:

1. starting with too little capital 2. underpricing or overpricing goods or services 3. no experience in that business or industry

how do intrepreneurs launch new products and generate new profit

by using the company's existing resources

_______________ ________________ are individuals or companies that invest in new businesses in exchange for partial ownership of those businessses

venture capitalists

a small business is defined as:

1. one that meets certain standards of size in terms of employees or receipts 2. one that is independently owned and operated 3. one that is not dominant in its field

some common causes of small business failure include:

1. over/underpricing goods and services 2. starting with too little capital 3. no experience in that business or industry

managers address many activities including planning, financing, marketing, HR development, and record keeping. of these functions, which two are of a primary concern when starting a business?

planning and financing

according to recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in 87% success rate of ________________ graduates

incubator

the U.S government agency that advises and assists small businesses by providing management training and financial advise and loans is called the:

small business administration