Chapter 7: Entrepreneurship and Starting a Small Business

Angel investors

Private individuals who invest their own money in potentially hot new companies before they go public.

Small business

A business that is independently owned and operated, is not dominant in its field, and meets certain standards of size in terms of employees or annual revenues.

Business plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

Entrepreneurial team

A group of people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

Micro-enterprises

A small business defined as having one to four employees.

Entrepreneurship

Accepting the challenge of starting and running a business.

Affiliate marketing

An online marketing strategy in which a business rewards individuals or there businesses (affiliates) for each visitor or customer the affiliate sends to its website.

Entrepreneurs

Creative people who work as entrepreneurs within corporations.

Business incubators

Centres that provide space, services, advice, and support to assist new and growing businesses to become established and successful.

Venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Business establishment

Must meet the following minimum criteria: it must have at least one paid employee, it must have annual sales revenue of $30,000, and it must be incorporated and have files a federal corporate income tax return at least once in the previous three years.

Market

People with unsatisfied wants and needs who have both the resources and the willingness to buy.

Crowd funding

Raising funds through the collection of small contributions from the general public (known as the crowd) using the internet and social media.

SMEs (small and medium-sized enterprises)

Refers to all businesses with fewer than 500 employees.

Micropreneurs

Small-business owners with fewer than five employees who are willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.