chapter7 : entrepreneurship
creative people who work as entrepreneurs within corporations
intrapreneurs
what percent of new jobs are in small businesses
60-80
program allows participants to collect unemployment checks while they build their business - participants often get training and counseling as well
Self Employment Assistance ( SEA )
a US government agency that advices & assists small businesses by providing management training, financial advice, and loans
Small Business Administration ( SBA )
SBA stands for
Small Business Administration ( a U.S. government agency that advices & assists small businesses by providing management training, financial advice, and loans )
online marketing strategy in which a business rewards individuals or other businesses ( affiliates ) for each visitor or customer the affiliate sends to the website ( example posting a link to buy a backpack on your Facebook, whenever someone clicks the link & buys a backpack you receive a commission from the seller )
affiliate marketing
micropreneurs may choose to be micropreneurs and never have a larger business because . . . ?
allows a balanced life style
private individuals who invest their own money in potentially hot new companies before they go public
angel investors
where are many micropreneurs based
at home
what does a business plan force potential small-business owners to do
be specific of products or services intended to offer
5 entrepreneurial attributes explain self nurturing
believe in your idea even when no on else does
detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and resources & qualifications of the owner
business plan
if your idea doesn't meet anyone elses needs what will happen
business won't succeed
5 entrepreneurial attributes explain tolerance of uncertainty
can't be afraid to fail ( take risks )
help you design an acceptable business plan and give you valuable financial advice as well as lend you money when you need it
commercial loan officer
lets customers and others from around the world help you design your products
crowdsourcing
5 entrepreneurial attributes explain action-oriented
desire to build dream into reality
specific geographic areas which governments try to attract private business investment by offering lower taxes & other government support
enterprise zones
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 team
accepting the risk of starting and running a business
entrepreneurship
how many new businesses don't last 5 years
half
in the 5 entrepreneurial attributes explain self directed
have to be self disciplined and be own boss
why do governments make enterprise zones
helps create jobs
explain all the risks associated with a small business and how to cover them efficiently with insurance and other means such as safety devices & sprinkler systems
insurance agent
3 key factors for success in running a business
knowing your customers, managing employees, keeping records
if venture capitalist takes too large of a stake what could happen
lose control of your business
people with unsatisfied wants and needs who have both the resources & the willingness to buy
market
entrepreneurs willing to accept the risk of starting and managing the type of business that stays small, lets them do the kind of work they want to do and offers them a balanced life style
micropreneurs
5 entrepreneurial attributes explain highly energetic
need to be able to work long and hard
4 reasons to take entrepreneurial risk
opportunity, profit, independence, challenge ( independence : don't have to work for someone else and challenge : thrive on risk )
what is the major cause of small business failures
poor management
backpack example of affiliate marketing
post a link to buy a backpack on you Facebook, whenever anyone clicks the link and buys a backpack, seller pays you a commission
5 entrepreneurial attributes
self directed, self nurturing, action oriented, highly energetic, tolerant of uncertainty
SEA stands for
self employment assistance ( program allows participants to collect unemployment checks while they build their business )
and SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost
service corps of retired executives ( SCORE )
SCORE stands for
service corps of retired executives ( an SBA office with volunteers who counsel small businesses at no cost )
business that is independently owned & operated, it is NOT dominant in its field of operation, meets certain size standards set by the small business administration
small business
can help you evaluate the feasibility of your idea, develop your business plan, & complete your funding application - ALL FOR NO CHARGE
small business development center ( SBDC )
SBDC stands for
small business development center ( help you evaluate the feasibility of your idea, develop your business plan, & complete your funding application - all for free )
program through which private investment companies, licensed by the small business administration, lend money to small businesses
small business investment company program ( SBIC program )
SBIC program stands for
small business investment company program ( program through which private investment companies, licensed by the small business administration, lend money to small businesses )
what do intrapreneurs have to do
use companies existing resources ( human, finance, & physical ) to launch new products and generate new profits
finance your project for a price
venture capitalists
individuals or companies that invest in new businesses in exchange of partial ownership of those businesses
venture capitalists
have to offer more then same merchandise a customer can buy at a store ( must offer unique products or services )
web-based businesses
can a plant have 1,500 employees and still be small
yes
