Chapter 1: small Businesses

Traditional small business.

A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.

High-peforming small business

A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business.

High-growth venture

A firm started with eh intent of eventually goin public, following the pattern of growth and operation of a big business.

main street businesses

A popular term for small businesses reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "Wall Street" businesses.

Franchise

A prepackaged business bought, rented, or leased from a company called a franchisor

Lifestyle or part-time firm

A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working.

Novelty

Characterized by being like copying something that already exists.

Overall growth strategy

One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.

Founder

People who create to start new businesses

Unicorn

The most successful high-growth ventures, those with a valuation of $1 billion or more.

Occupation

The type of activity a person does regularly for pay.

Independent the small business

a business owned by an individual or small group

Owner-managed firm

a business run by the individual who owns it

Heir

a person who becomes an owner through inheriting or being given a stake in a family business

Serial entrepreneur

a person who opens multiple businesses throughout his or her career

self-efficacy

a person's belief about his or her ability to perform a behavior successfully

Firm

an organization that uses resources to produce a product, which it then sells to or trades with others

Crowdfunding

funding a business online through the collective involvement of others who provide donations, loans, or investments

small business

involves 1-50 people and has its owner managing the business on a day-to-day basis

Buyers

people who purchase an existing business

Innovativeness

refers to how important a role new ideas, products, services, processes, or markets play in an organization

Flexibility rewards

the ability of business owners to structure life in the way that suits their needs best

Small and medium enterprise (SME)

the international term for small businesses

Income rewards

the money made by owning one's own business

Goods or Services

the tangible things (goods) or intangible commodities (services) created for sale

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business

Growth rewards

what people get from facing and beating challenges

Self-employed

working for yourself