Entrepreneurship (Chapter 6)

Small businesses advantage over large in international trade

1. Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies. 2. Small companies can usually begin shipping much faster. 3. Small companies can provide a wide variety of suppliers. 4. Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them.

functions of a small busniess

1. planning 2. Financing 3. Knowing your customers 4. Managing your employees 5. keeping records

Attributes of an entrepreneur

1. self-directed 2. self-nurturing 3. action-oriented 4. highly energetic 5. tolerant of uncertainty

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

Intrapreneur

A creative person who works as an entrepreneur within a corporation

Entrepreneurial teams

A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product.

Micropreneurs

A person who maintains a balanced lifestyle while doing the kind of work they want to do

Entrepeneurship

Accepting the risk of starting and running a business.

venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

management team

Include an organization chart, job descriptions of listed positions, and detailed résumés of the current and proposed executives.

Company Background

Overall description of the company, the firm's current status, and the history of the business Vision statement / mission statement Specific goals, Business' competitive advantage

local analysis

Provide a comprehensive demographic analysis of consumers in the area of the proposed business as well as a traffic-pattern analysis and vehicular and pedestrian counts.

why small business struggle in global market

(1) financing is often difficult to find, (2) would-be exporters don't know how to get started and do not understand the cultural differences between markets, and (3) the bureaucratic paperwork can threaten to bury a small business.

market

Consumers with unsatisfied wants and needs who have both resources and willingness to buy.

Manufactoring plan

Describe minimum plant size, machinery required, production capacity, inventory and inventory-control methods, quality control, plant personnel requirements, and so on.

financial plan

Discuss the strengths and weaknesses of the product or service. Compare pricing to the competitions. Forecast sales in dollars and units. Outline sales, advertising, promotion, and public relations programs.

Cover letter

Your cover letter should summarize the most attractive points of your project in as few words as possible.

Executive Summary

a brief overview of the entire marketing plan

Business plan

a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).

reasons for failure of small business

managerial incompetence, neglect, weak control systems, insufficient capital

incubator

offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help.

small business

one that is independently owned and operated for profit and is not dominant in its field, and meets certain standards of size

Small Business Investment Company (SBIC) Program

private investment companies licensed by the SBA to lend money to small businesses

enterprise zones

specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.