Ent
Small business assistance center
Centers funded by the small business administration that advises individuals wishing to start a new business
1970s and early 1980s entire industries were in
Decline
1970s and early 1980s nation was in
Economic turmoil
Can respond quickly to change
Entrepreneurial businesses
Greater flexibility
Entrepreneurial businesses have
Local
Entrepreneurial businesses have an understanding of the __ Community. They provide more than just jobs they provide means to meet the varied demands that individuals face in society
Incubator
Facilities that house new businesses, providing many critical services for these new businesses
High-growth, high-tech
First category of start up businesses include those formed as
Alexis de Tocqueville
Frenchman who toured the US in the early 1830s and wrote a famous analysis of the country
Large firms
Happy ability to produce a service or product more cheaply since it's turn on a large scale
Competitive advantage, skill set, understanding of the industry
I found her or founding team must have synergy which is a combination of what
Stakeholders
Individuals or other organizations that impact the success of a business
The Great Depression of 1930s resulted in
Industrial concentration
Family experiences
Is A skill for a new business that is often overlooked
99.9%
Of all businesses in the US are small
Gap analysis
Once a list of skills and abilities have been developed the next step is to perform a ___ To examine the marketplace for an opportunity that exist between the demand for a product in the supply provided by firms in the market
Exam in the marketplace for opportunities
Once a skill analysis has been completed the next step is to
The decline of larger firms opened new
Opportunities for new businesses
Entrepreneurial businesses
Or more flexible and willing to pursue a wider range of opportunity
Bounded rationality
Rational decision making that is constrained by the background and history of the person making the decision
500, 50
Small and entrepreneurial businesses: US government considers to be any business with fewer than ___ employees whereas the European Union it's ___ employees.
Threats to operational financing
Specific threats to the new venture and financing its growth including high development costs rapid expansion plans high inventory needs and or an entrepreneurial team with a low asset base
Entrepreneurial firms
Start up is usually still funded by those close to them The number of employees may be zero or as he was one and typically would not be expected to grow more than 50 to 500
List and evaluate one's personal skill sets, analyze the market and look for a gap or need that is not being met, compares one's ability to fill the identify gaps with an opportunity available
Steps that are important to the development of quality business idea in order
These are true statements regarding education as it relates to skill sets
Technology skills acquired through education can be particularly valuable, knowledge gained from formal education provides a skill set, an opportunity that uses your education is another source of business
Synergy
The connection between the entrepreneur skills and understanding of the industry and the ability to create a competitive advantage such that the sum of the parts of the new business is greater than the individuals part alone
Industrial concentration
The degree to which production of an industry/economy is dominated by a few large firms
Amount of family resources that could be committed, I'm out of money required to operate a business, I'm out of money required to start a business
The finance category on the gap analysis chart examines the
Leading edge or new application of technology. Hi research and development. Money upfront. Low production cost high margin. Ease of scalability.
The first category of start up businesses include those forms high-growth high-tech
Moving from 3 to 5 ideas to a single idea
The initial analysis is a process of
Break even point
The level where revenue coming into the firm is sufficient to cover expenses
Harvest plan
The plan to exit the small business
Linear; Interactive
The step in the process of generating ideas do not occur in a(n)____ Fashion but should occur in a(n) _____ manner.
Family, social networks, community, financial support
The support and resource areas the entrepreneur might examine include
Robber Barons...
Took advantage of economics of scale
Being laid off, being approached by one or more people with a new business idea, reaching a point financially where the risk return level of propose new business is tolerable
Triggers in the formation of a new business
Venture capitol startups
Well funded, are formed with a harvest plan, develop organizational structure, often hire an experienced president to grow the company, etc.
Current work experience, family history, hobbies, past work experiences
Which contributes to personal skill sets
Large organizations
Will often ignore business opportunities if they do not believe the results will generate high profits
Competitors
Without the needed skills the founders would be faced with not holding any advantage over the ___ Who have the necessary depth in the area
glass ceiling
Women may be hired by large firms but experience limits placed on the advancement
Economies of Scale
a condition that allows the long-run average cost to continue downward ad production increases
Fortune 500
a list of the 500 U.S. companies with highest earnings, published yearly by Fortune magazine
Robber Barons
a person who has become rich through ruthless and unethical business practices
33.3%
of known export value are from small businesses
Family business
A business that is run by and for a particular family
Brainstorming
A creative process whereby a group or individuals are brought together and asked to generate ideas with little or no effort made to evaluate the potential for each idea
Agency theory
A managerial theory that argues that individuals at to maximize their own benefit. Thus in settings where there is a split between ownership and control
Gap analysis
A relatively simple process of systematically examining the difference between what is expected in what occurred
Organizational slack
Access resources in an organization typically found in large organizations rather than small businesses