Intro to Business Chapter 5

Venture Capital

Money that is invested in small (and sometimes struggling) firms that have potential to become very successful.

Franchisor

An individual or organization granting a franchise.

Small Business Institutes (SBI)

Groups of senior and graduate students in business administration who provide management counseling to small businesses

Small-Business Development Centers (SBDCs)

University based groups that provide individual counseling and practical training to owners of small businesses.

Service Corps of Retired Executives (SCORE)

A group of business people who volunteer their services to small businesses through SBA.

Franchise

A license to operate an individually owned business as though it were part of a chain of outlets or stores.

Planning

Many entrepreneurs fail to adequately plan for a firm's growth and expansion.

Small business

One that is independently owned and operated for profit and is not dominant in its field.

Management

Many entrepreneurs lack these skills. Money time personnel, and inventory all need to be effectively managed.

Business Plan

A carefully constructed guide for the person starting the business.

Small Business Administration (SBA)

A governmental agency that assists, counsels, and protects the interests of small businesses in the United States.

Franchisee

A person or organization purchasing a franchise.

Small-Business Investment Companies

Privately owned firms that provide venture capital to small enterprises that meet their investment standards.

Capital

The entrepreneur doesn't raise enough money to start and/or sustain the business in its early stages. It may take years before a business begins to show a profit.

SBA Financial Assistance

While the SBA does provide a limited amount of direct financial assistance (loans, grants, etc.) to small businesses, its primary financial function is to guarantee loans to eligible businesses.