Chapter 5 Business

entrepreneurs

People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an existing firm.

Small Business Investment Company (SBIC)

Privately owned and managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses.

small business

A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.

debt

A form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

Small Business Administration (SBA)

A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management, and helps them win federal contracts.

intrapreneurs

Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.

venture capital

Financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

angel investors

Individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds.

Small Business Managers/Business Owners

These are people who many have the technical skills and knowledge to start and operate a business or buy a business to operation. They may simply see a need and fill it, without really being visionary or entrepreneurial. These are commonly people who start a competing business or buy a business or franchise.

Intrapreneurs

are employed by companies who provide the freedom to develop new concepts, products or businesses on behalf of their company.

Entrepreneurs

people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit. They may create new businesses, or change the scope and direction of existing businesses. It's common for entrepreneurs with multiple ideas to start a business, then sell it to move on to other ideas. Entrepreneurs who start and sell over and over are called serial entrepreneurs. Entrepreneurs who start and run different businesses are called multipreneurs.

Micro-Entrepreneurs

start very small businesses with the intention of staying small and mostly working by themselves. They may turn a hobby into a business, do a business part-time, or simply create a job for themselves. Examples: food carts, Uber drivers, consultants, cosmetologists, car detailers and others

equity

A form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business.

business plan

A formal written statement that describes in detail the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications of the owner(s), a description of the product or service, an analysis of the market, and a financial plan.