Chapter 5 Management
Finance and Insurance (Strategy for Entrepreneurial Organizations)
business comprise about 4.2% of all firms with fewer than 20 employees.
Buying an Existing Business (Starting the New Business)
After choosing a product and making sure that the choice fits their own skills and interests, entrepreneurs must decide whether to buy an existing business or to start from scratch.
Starting From Scratch (Starting the New Business)
A new business does not suffer the ill effects of a prior owner's errors. The start-up owner is also free to choose lenders, equipment, inventories, locations, suppliers, and workers, unbound by a predecessor's commitments and policies.
Personal Resources (financing the New business)
According to a study by the National Federation of Independent Business, an owner's personal resources, not loans, are the most important source of money.
Lenders (financing the New business)
Although banks, independent investors, and government loans all provide much smaller portions of start-up funds than the personal resources of owners, they are important in many cases.
Entrepreneurhsip
Is the process of planning, operating, and assuming the risks of a business venture.
Manufacturing (Strategy for Entrepreneurial Organizations)
More than any other industry, manufacturing lends itself to big business - and for good reason.
Small business
a business that is privately owned by one individual or a small group of individuals and has sales and assets that are not large enough to meaningfully influence its environment
Franchising agreements
a contract between an entrepreneur (the franchisee) and a parent company (the franchiser); the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans
Business plan
a document that summarizes the business strategy and structure
Venture capital companies
a group of small investors seeking to make profits on companies with rapid growth potential
Established market
a market in which several large firms compete according to relatively well-defined criteria
Niche
a segment of a market not currently being exploited
Construction (Strategy for Entrepreneurial Organizations)
about 11.72% of business with fewer than 20 employees are involved in construction. because many construction jobs are relatively small, local projects, local construction firms are often ideally suited as construction.
First-mover advantage
any advantage that comes to a firm because it exploits an opportunity before any other firm
Strategic Alliances (financing the New business)
are also becoming a popular method for financing business growth.
Venture Capital Companies (financing the New business)
are groups of small investors seeking to make profits on companies with rapid growth potential.
SBA Financial programs
has offered more than 20 financing programs to small businesses that meet standards of size and independence.
Emergence of E-Commerce (Trends in Small-Business Start-Ups)
one of the most significant recent trends in small-business start-ups is the rapid emergence of electronic commerce.
Services (Strategy for Entrepreneurial Organizations)
primarily because they require few resources, services businesses are the fastest-growing segment of small-business enterprise
Retailing (Strategy for Entrepreneurial Organizations)
sells directly to consumers products manufactured by other firms.
Wholesaling (Strategy for Entrepreneurial Organizations)
small-business owners often also do very well in wholesaling; about 5.2% of business with fewer than 20 employees are wholesalers.
Transportation (Strategy for Entrepreneurial Organizations)
some small firms-about 2.8% of all U.S. companies with fewer than 20 employees- do well in transportation and transportation-related business.
Entrepreneneur
someone who engages in entreprenurship
Identifying New Markets
successful entrepreneurs also excel at discovering whole new markets.
Small-Business Investment Companies (financing the New business)
taking a more balanced approach in their choices than venture capital companies, small-business investment companies seek profits by investing in companies with potential for rapid growth.
