Small business & Entrepreneurial Development Strategies Chapter 1 & 2 Terms
What is a general partnership
Two or more people are included in the business enterprise.
Question your would be entrepreneur should be asking themselves
What type of business venture they would like to start, what qualifications do they have, is it feasible to make a profit, have they research target market and determine market niche, written business plan written financial plan written marketing plan, taken into consideration the family impact
What is Federal unemployment tax
With hold of employee money to support unemployment benefits
If you are an organization that provides loans to small businesses how can you assist in technical assistance
You can require them to attend biweekly or monthly meetings to discuss problems from their business that they may be experiencing as well as highlighting teachable moments in many of the areas of owning a small business
How can the iMac developer practitioner utilize score
Your clients participate in score and be the link between score in the small businesses in your community by setting up mentoring meetings and workshops
What types of meds in codes to local governments oversee for businesses
Zoning laws and inspection requirements, occupancy permits, certificate of use or zoning use permits, building change permits, city street or sidewalk permits, boiler and pressure vessel codes, housing and construction codes, air quality permits, miscellaneous codes and regulations.
What Federal programs provide technical assistance for small businesses
Small business development centers, the service corps of retired executives (score), women's business centers, SBA veteran business outreach center, the SBA management and technical assistance program, the US Department of agriculture, the internal revenue service
An economical been organization cannot be all things to all businesses however after assessment what are some of the programs and EDO can establish
Small revolving loans, establishing a small business one stop shop, setting up a business incubator, setting up a 504 CDC, sponsoring networking events to bring entrepreneurs together, offering business education and training courses, providing one oh one counseling
How can I use market their business program
Social media, local newspaper, EDO publications, radio, and advertisements
What are three basic legal structures of businesses
Soul proprietorship, partnership, and corporation
What is this way to determine what technical assistance a business needs
Survey them
what is Real & Property Taxes
Taxes that are levied on businesses and individuals who own personal property and real estate property. EDOS should be able to refer businesses to the state agencies who handle this
Resources for small businesses focus on what three activities
Technics assistance, business space, financial assistance
Who do the small business entrepreneurs usually turn to for financing capital when conventional lenders are not available
The 3 Fs family, friends, and fools; angel investors
what are the advantages of a sole proprietorship
The advantages of sole proprietorship are freedom to enter and exit the market easily, freedom from outside control, freedom to retain information, freedom from paying excessive taxes, and freedom from being an employee, can change to a partnership or corporations at any time
What are disadvantages of a general partnership
The earths bear unlimited liability for all debts and liabilities, the enterprise ends with the death of one of the partners and any partner can change the orientation of the organization
What are variety of technical assistance resources that EDOs use
There are experience, federal government, state government, small business administration and small business development centers, US Department of agriculture, US Department of housing and urban development, internal revenue service, service corps of retired executives, minority business development agency, youth entrepreneurship programs, community organizations, Chamber of Commerce, business assistance centers, thank you Bader's, economic gardening, commute commercialization intermediaries technology transfer programs, educational institutions
What are small business administration advantage loan programs
These are loans advise support and assistance in the small business loan application process to the segments of the small business community that are traditionally underserved by lenders; the gram allows lenders to get pre-qualification indication from the small business administration that the applicant business has sufficient credit worthiness to warrant giving the applicant for consideration for financing; it is encouraging existing SBA lenders to make lower dollar loans which often benefit businesses in underserved markets: the small business loan advantage and community advantage and if it initiatives are 70 loan programs there for all other terms and conditions and requirements of seven a program apply
What characteristics do entrepreneurs possess
They are motivated, willing to take a risk, strong leadership qualities, aggressive work ethic, work creatively, remain motivated when there are setbacks
What are the statistics on small businesses
They rep 99.7% of all employer firms; they employ 48% of all private sector employees; they pay 42% of the total US private payroll; they have generated 66% of net new jobs; they create 46% of non-farm private gross domestic product; they hired 37% of high tech workers; they are 52% home-based and 2% franchises; they are made up of 97.7% of all identified exporters and produce 33.6% of the known export value; produce 16 times more patents per employee then large patent patent in firms
As an ED Practitioner you will not be able to make someone an entrepreneur however what should your charge be in this area
To be aware of local and regional service providers to create an innovation ecosystem where aspiring entrepreneurs can thrive
What is the primary goal of economic ecosystems
To create an environment conducive to the development of the unique needs of entrepreneurs this includes incubators, accelerators, co working and maker spaces, with appropriate support structure and services
Minority business partnerships with largest corporations proven effective
Yes these have proven to be one of the strongest aids to small businesses owned by minorities
What is a sole proprietorship
a business owned and managed by a single individual and is the most common form of business.
What is State Intangible Tax
a tax on intangible assets. several states have this type of tax
What is entrepreneurial ecosystem
communities of interconnected entrepreneurial organizations, institutions, and processes
And what is the role of small businesses in the economy and essentially what does economic development focus on
creating jobs strengthening the tax base and improving the quality of life
What are the disadvantages of a sole proprietorship
difficulty raising capital, sole liability, dissimulation of the business upon the death of the owner.
What are the two types of partnerships?
general and limited partnership
What is a state occupational license
in select states, certain businesses need to acquire licenses or certificates of competency in order to do business and these certifications or licenses require permits training or testing
What is the one cause for many business failures attributed to
poor management (no market understanding or sufficient knowledge to run a business)
What is business & occupation tax
some states charge a tax to businesses for conducting business in their domain based on their gross income. Some states allow gross income deductions.
What is excise tax?
specific taxes made on certain goods, like gasoline. The price of the excise tax is included in the price
what do entrepreneurs need in the way of assistance
training, technical assistance, and capital to succeed
How many businesses survive 15 years or more
25%
What is a corporation
A business owned by stockholders who elect a board of directors. Stockholders share in its profits but are not personally responsible for its debts
What is the stats Department of commerce's minority business development agency
Agency created to encourage the growth of businesses owned by ethnic and racial minorities and those businesses eligible, receive assistance from MBDA
What are the lady of traits that EDO should look for in staff members who advised entrepreneurs and small businesses
Business energy real experience, ability to work through credit analysis, the ability to leverage available city state and federal resources, the ability to listen and communicate well, the ability to speak multiple languages with foreign entrepreneurs and communities, knowledge of market and feasibility studies
I was in my new ownership business determined
Business is at least 51% owned by minority individuals or if a publicly owned business at least 51% of the stock is owned by one or more such individuals and the minority group members control the management and daily operations
What is the role of community development corporations in entrepreneurship
CDC's are nonprofit organizations that are helpful in small businesses for example some CDC's provide entrepreneurial training programs and give business planning assistance
After yo practitioners have understood where the gaps are they can then develop objectives what are some of the objectives they may develop
Call attracting suppliers to support new companies, facilitating R&D through collaborative projects with universities or research orcs, removing obstacles to re-investment
What are the advantages of a corporation
Can emulate income and pay taxes at a lower marginal rate; not affected by owner death; more credibility with banks and lenders.
How can small business assistance organizations coordinate efforts
Communicate is the key communicate offerings and have a clearinghouse so that there aren't duplication of efforts , like a calendar of events, that can be shared via social media or in other publications for entrepreneurs and businesses
What are you Neland is that for an entrepreneur space
Difficult accessing credit, unfamiliar US institutions, lack of financial literacy and management skills, language barriers, accessing existing business support, uneven awareness of the value of training for themselves and their employees, poorly developed business networks
What arm of the services offered by the minority business development agency
General agement assistance like business planning public relations and formulating corporate policy, finance and accounting assistance, and personnel management like job evaluation and training
What does HGF stand for
High growth firms
What individual businesses are specifically eligible to receive minority business development agency assistance
Hispanic Americans, Asian and specific island Americans, Native Americans, African-Americans and Hasidic Jews
What is the criteria to becoming an InBIA Soft-landing certificate holder
Holden of INBIA membership, demonstrate program success in serving non-domestic businesses for at least 18 months, have on site incubator management, provide a full range of business services addressing needs, have a policy for graduating companies, Service first landing site for nondomestic clients, incubating on domestic clients in the incubators domestic market, instituting business incubation best practices, tracking metrics of success with all incubation clients
What are you two questions EDO staff should ask all interested entrepreneurs
How much business management experience do you have in the field & how much of your own cash will you be willing to put into this business enterprise
Are some ways economic development organizations business assistance program can cater to foreign entrepreneurs
Improve asked to existing business services by offering them at convenient times and locations in the entrepreneurs native language, referred immigrant entrepreneurs to the services available in their communities, support them in issues of housing assistance spousal employment assistance or information to navigate unfamiliar education child care and healthcare systems by referring them to orgs to assist as well as collaborating with those organizations.
What is a soft landing environment for foreign investors
Incubators are particularly interesting to early stage foreign investors as a soft landing environment, they are attractive because they provide smaller investors the resources support and opportunities that are too costly or time-consuming to develop on their own.
Where do you in SBDC's
Institutions such as universities community college vocational schools chambers of commerce and economic development organizations
What is after in regards to FDI
It is strengthening relationships with and support for foreign investors and is a range of activities from post establishment facilitation services to developmental support for new foreign investors
What is the national minority supplier development council
Leaving business or ship organization that certifies and matches 12,000 minority owned businesses with membership corporations that wish to purchase goods and services from those businesses end it does to insure that a small business is actually owned controlled and operated by the applicants which ensures a business is eligible for targeted programs.
How many soft landing incubators are in the United States that hold certificates from the international business innovation association
More than 15
If an EDO's Business assistance program is swamped with interested entrepreneurs what are some of the basic criteria/screening process used to select the entrepreneurs for the program?
Self select, target group characteristics, commitment, merit of the business idea, informal judges judgment about the candidates personal situation and ability to complete the program.
How many businesses survive two years or less
Seven out of 10
How many businesses survive five years
5 out of 10
What is an angel investor
A firm individual that contributes to start up capital for entrepreneurs, they do not get involved in the actual management of the fledgling business
What is a limited partnership
A partnership with 3 or more people with no more than 2 general partners and one limited partner. Limited partners are not involved in the regular management of the organization and they also have limited liability
What is a Netwerk
A supportive Network, formal or informal, of friends colleagues acquaintances advisors or mentors that offer informative council, encouragement, leads, and access to resources of all kinds
What role economic developers play in solving a clients financing problem
And EDO can leverage private sector investment, establish private or quasi public lending institutions or programs, package financing geared towards small businesses such as loan programs available through the small business administration, compile a list of loan programs from local banks finance companies small business oriented revolving loans and other lending institutions
What is a mentor network
And it is a mentor program in which small business owners of newer ventures are matched up with small business owners of more established and older businesses thereby drawing above the knowledge of the experienced business
What is a peer network
Angels in the business community who are going through the same process in establishing a successful venture which can offer it's shared experiences, answers to question, and discuss the issues they share as well as the rate more business as your problem solve together
What is micro enterprise
Are usually employees fewer than five people and are often home based
What is Lease hold excise tax
Business at least publicly owned property like public industrial property might have to pay taxes on their rent
What are the three over arching programs that SBDC's offer
Business consulting (face to face discussions on market strategies, Business plan, competitive analysis), training programs (accounting, marketing and general ownership), and informational research services (market niche and who their primary customers should be)
What types of activities are considered technical assistance
Business development, assistance with grant and loan applications, training and managing staff, advice regarding financing marketing and product development, improving the design of a product or the manufacturing process, accounting and other record keeping functions, site selection and workforce development assistance, and consultation sounding board opportunities
What are income taxes?
Businesses are required to withhold federal income tax from their employees and withholding is determined by the wages or the salary of the employee and the number of withholding allowances he or she claim on their W-4 form
Hazardous waste generator tax
Businesses who have certain pounds of waste produces that can't be handled by routine wast management because it's a health hazard, will need to pay a tax in some regions.
how is small business defined
By number of people they employ or their annual revenues. Many analysts consider 20 employees or less as a small business however the small business administration defines small businesses for most industries with having fewer than 500 employees
What is a C corporation?
C corporation pays the taxes, then dividends paid to shareholders. Shareholders pay taxes on income so taxed twice. There is no limit on the number of shareholders and people who are not citizens or residents of the US may hold shares and C corps can carry corporate losses forward to future tax years
How do you determine the needs of an individual community which leads to a business development strategy
Certain neighborhoods and local lending institutions, evaluating existing services, and the availability of credit in the community to determine if small business and entrepreneurial development is the right approach
What are the numerous challenges new entrepreneurs face when attempting to secure money to establish their business
Conventional institutions consider loans to start ups and rapidly expanding small firms too risky; lack of collateral; insignificant credit history; and the lack of a formal business plan; typically require smaller loans and conventional lenders generally prefer to provide large loans
What are S corporations
Corporation is a firm that is treated under federal tax purposes in subchapter S of the Internal Revenue Service versus an S corporation files and information tax return in order to report its expense is it income but it is not separately taxed. Income and expenses of the Corp. are divided among the shareholders in proportion to their holdings and profits are taxed at the shareholders tax rate
What are business development stages
Create a business idea, formalizing the business plan, opening the business, expanding and growing the business
What are the types of technical assistance that a small business or entrepreneur might need
Deciding what form of enterprise they want to start, deciphering specific legal regulations and codes, understanding applicable tax requirements, writing a business plan, access to capital, financial management techniques, marketing and competition analysis, development, commercialization and technology transfer programs, exit strategy
What is Social Security tax (FICA)
Finances the Social Security program and its rates are based on wage limitations and are subject to change by congressional act and is levied on both employers and employees as well as self-employed individuals
What are civic examples of types of entrepreneurial Eco organizations
Firms, venture capitalists, business angels, banks university, institutions like universities and public sector agencies
How can EDOs help entrepreneurs in small businesses in the area of tax laws
Help them find out which tax laws apply to them, advise them to get an accountant.
How is the Board of Directors useful in a small business assistance organization
Helps rich specific community resources to help emerging businesses by allowing the professional (board member) to teach workshops and seminars for businesses applying for assistance from the organization
What are some of the questions a economic developer must assess before developing a strategy for offering loans or securing debt or equity financing for a business
How are other local business assessing capital, what is the local financing situation, at what point are growing start ups able to tap additional resources to expand, who is providing development capital to (hire more employees, move out of an incubator, or renovate a local storefront)
what is workers compensation tax?
If you have two employees or more you have to provide compensation insurance which provides compensation to injured employees
What is a venture capital firm
Important source of equity capital for small businesses but they prefer to invest in enterprises that will possibly result in a very high rate of return which then reduces availability of venture capital for non-conventional businesses.
What is it unemployment insurance
In some states unemployment tax is charged to the employer for taxable wages for a quarter of the year
What are some other common reasons for business failure
Insufficient preparation or knowledge for industry; inability to deliver product; inconsistent quality of product or service; under competitive product design or packaging; under estimating competition; under capitalization; lack of knowledge or experience with advanced technologies in manufacturing; problem selecting appropriate equipment vendors or consultants; lack of understanding of government regulations
What is a Federal Employer Identification Number?
Is a number assigned to a company for the purpose of being a internal revenue service registered business (Form SS-4), must be filed within seven days after the business began operations
What is corporate and personal income tax
Is a rate that is charged to corporations and individuals dependent on income status and location anticipate to the states or federal government
What is score resource
It is an ordination consisting of more than 320 chapters and 1100 volunteer counselors for America small businesses they are retired business executives and owners dedicated to educating entrepreneurs and promoting the formation, growth and success of small businesses. Score by it's free or low cost workshops and publishes how to articles that help train the emerging business leaders in your community
What is retention and expansion focused on when it comes to businesses
It is geared toward keeping businesses that are already in the area in an effort to maintain or expand the present number of jobs
What is small business incubator
It originates and supports young companies until they become viable. They provide affordable space and technical and management support and help firms secure equity and long-term debt financing, and can help find qualified local employees, mentors, and connect with other service providers. They help emerging businesses survive the first few years of their business cycle.
What's one of the frequent complaints from small business owners
Lack of access to Capital
What is an example of a youth entrepreneurship program
Junior chief met program which is after school during the summer and with the cooperation of local school systems during the day. Businesses can often be started with as little as $100-$300. These types of projects teach kids among other things borrowing rules and how to develop a good credit record.
What non federal programs provide technical assistance for small businesses
Local chambers, community colleges, lawyers, bankers, accountants, and business round tables
Comes to business failure how is that defined
Location of a business at a loss
What way do small business and emerging businesses play a significant role in the overall job growth
Most net job creation is generated by firms that are one to five years old also young firms create more net new jobs than older counterparts as well as a higher number of jobs perfect firm
What are the advantages of a general partnership
Multi financial and administrative resources to rely on, profit or not taxed directly
What are small business development centers
Originally served by the small business administration these centers are a one stop shop for small business technical assistance. The SBA provides 50% or less of the operating funds for the state SBDC's and sponsors provide the rest of the funding. SPD's deliver counseling, training, and technical assistance in all aspects of the firms management and make an effort to reach out to socially and economically disadvantaged groups
What are some of the questions and Idiomas ask themselves when setting up a small business development program to assess what makes the most sense for their community
Poopy duplicating services, what is your small business development growth plan, what size type stage of firm geographical area will you target, what are your long-term goals, what resources do you have, where were you concentrate those resources, and what areas of community or small business is suffering, what is the most common complaint of local business owners, what are the resources are available to small business owners, are they aware that these resources are available, how can you cooperate with other economic development resources resources
What are the disadvantages of a corporation
Produces amounts of paperwork and is taxed twice
What are the many ways that the economic development organization can assist small and start up businesses
Provide technical assistance education and training, assist with marketing, facilitate technology transfer, improve access to capital, reduce disincentives and barriers to entrepreneurship, invest in basic infrastructure by building a network of entrepreneurial service providers, provide recognition and awareness of successful entrepreneurial ventures, provide test for entrepreneurship and assess client potential, provide legal information on permits zoning laws etc., provide information on the market and demographics, highlight and celebrate entrepreneurial success stories
what are limited liability companies and partnerships?
Providing protection of a corporation with the flexibility of a partnership. And claims against the corporation rests with the corporation itself and not with individual urn owners business income and losses are distributed to the owners of the business
How can business assistance organizations help with providing legal assistance
Publish manual that outlines the various legal issues in your area and update it regularly.
What are three types of business incubators and describe them
Technology based incubator (usually university led), local economic diversification incubator (concerned with supporting solid job-creating manufacturers or service firms), and revitalization incubator (in areas of low economic activity, supporting small independently owned company in regions were aging industrial districts declining commercial space or closings and layoffs have put the entire local economy in jeopardy).
How do youth entrepreneurship programs help youth
The educator and about their environment and how to view it differently, they show low income children the opportunities that surround them by examining the types of businesses that serve their area, the emphasize attitudes and basic values such as optimism and perseverance which are characteristics of entrepreneurs, they promote the value of micro enterprises such as mom and pop shop, they provide practical application of these ideas to help children internalize the concepts
How do you chambers help with entrepreneurship and small business
The primary advocates for businesses in the community however they are membership-based. They offer mini services for small and emerging businesses ranging from referral services and workshops to provide a one-on-one consultation during each step of the development process
What is public utilities tax
This is a test that utilities in common carriers often pay instead of the business and occupation tax the types of businesses who pay this our water distribution, sewer collection, urban transportation another public service companies
Why do HGS have a strong economic impact
They are responsible for significant job creation in times of economic growth and economic recession making them a beneficial focus of EDOs, they are subject to market forces so they are prone to invest heavily in their workforce in order to remain competitive in the volatile start up.
Do small businesses play a fundamental role in local communities
They are tax revenue generators, economic supporters buying and supplying local products and services, property owners and renters, providers of economic stability
Why do business owners underestimate the importance of market
They don't understand that market studies are equivalent to their success and they also don't understand how to find adequate information on markets, how to assess markets, finding a niche and target buyers
What are characteristics of a small business
They have ties to the community and are less likely to relocate, they have flexibility with market changes, and they start up with very little capital around $20,000
What is the questions that might be on a survey to determine what technical assistance businesses in your community need
What a business assistance do they want, what business assistant efforts are most helpful, in what area of business management do they feel most weak, do existing businesses use technical assistance providers if so which ones, how informative and useful are assistant provider services (such as the business management training program, financial program, business plan preparation workshops, market identification advice, one on one counseling), how many technical assistance providers are they aware of, what suggestions does the business have for approving technical assistance services
The entrepreneur ecosystem approach offers a new distinctive perspective on the geographical clustering of economic activity in what three ways
entrepreneurial ecosystems focus on the development of high-growth firms and are structured in such a way that promotes their success in the long run; the emphasis is on generating entrepreneurship on a local and regional scale; it blends the interactions of framework conditions of the local economy and the geographical environment into one perspective which allows EDO's to focus on effective development that involves many different actors
What is the role of institutions of higher education in entrepreneurial programs
local colleges, universities and technical schools have multiple resources to offer small business entrepreneurs. Some of these take proactive approach to assisting entrepreneurs including referrals, business planning, legal assistance through the law program, business plans, financial management training
Why does public policy support entrepreneurs at the local level
startup and growing small businesses add to the net some game of jobs, homegrown businesses may be more likely to remain loyal and stay in the area, with the increased use of technology to transfer information more people able to run businesses out of their own homes, small businesses respond quickly to market shifts where is larger manufacturing companies do not have the same flexibility
Economic payment practitioner should know what seven things when assessing businesses in the community
what has been happening with the territory of the area regarding progress or decline of businesses, constantly aware of problems and conditions that small business owners struggle with, inform new business owners of the history of business success in the area, a yearly consensus detailing the business climate of local businesses and proprietors, how to relate is the first task of an practitioner for its clients therefore staff members should be familiar with if not part of the community they serve, marketing effective business programs and resources to the businesses, and finally knowing win the business should quit by reminding the business owner it is important to know when it's better to let go of the business and hurt the ego rather than pool resources away from raising the family