Entrepreneurship and Starting a Small Business

enterprise zones / empowerment zones / enterprise communities

6-1. specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support.

small business

6-2. a business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.

Microloans

6-4. (SBA) amounts ranging from $100 to $50,000 to people such as single mothers and public housing tenants.

504 certified development company (CDC) loans

6-4. (SBA) loans for purchasing major fixed assets, such as land and building for businesses in eligible communities, typically rural communities or urban areas needing revitalization. The maximum guaranteed loan amount is $5 million for meeting the job creation criteria or a community development goal. The business must create or retain one job for every $65,000 ($100,000 for small manufacturers) provided by the SBA.

What hints would you give someone who wants to learn about starting a small business?

6-4. First, learn from others. Take courses and talk with some small-business owners. Second, get some experience working for others. Third, take over a successful firm. Finally, study the latest in small-business management techniques.

Small Business Administration (SBA)

6-4. A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

Service Corps of Retired Executives (SCORE)

6-4. An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses).

micropreneurs

6-1. Entrepreneurs 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.

entrepreneurship

6-1. accepting the risk of starting and running a business.

Affiliate marketing

6-1. an online marketing strategy in which a business rewards individuals or other businesses (affiliates) for each visitor or customer the affiliate sends to its website.

incubators

6-1. centers that offer new business low-cost offices with basic business services.

intrapreneurs ; intrapreneuring

6-1. creative people who work as entrepreneurs within corporations. Intrapreneuring is the establishment of entrepreneurial centers within a larger firm where people can innovate and develop new product ideas internally.

entrepreneurial team

6-1. is a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product.

Guaranteed loans

6-4. (SBA) loans made by a financial institution that the government will repay if the borrower stops making payments. The maximum individual loan guarantee is capped at $5 million.

Export Express

6-4. (SBA) loans made to small businesses wishing to export. The maximum guaranteed loan amount is $500,000.

Community Adjustment and Investment Program (CAIP)

6-4. (SBA) loans to businesses to create new, sustainable jobs or to preserve existing jobs in eligible communities that have lost jobs due to changing trade patterns with Mexico and Canada following the adoption of NAFTA.

Pollution control loans

6-4. (SBA) loans to eligible small businesses for the financing of the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling.

CAPLine loans

6-4. (SBA) loans to help small businesses meet their short-term cyclical working capital needs. The maximum CAPLine loan is $5 million.

Small Business Development Center (SBDC)

6-4. SBDCs are funded jointly by the federal government and individual states, and are usually associated with state and community colleges and universities. SBDCs can help you evaluate the feasibility of your idea, develop your business plan, complete your funding application- all for no charge.

Small Business Investment Company (SBIC) Program

6-4. SBICs are private investment companies licensed by the SBA to lend money to small businesses. An SBIC must have a minimum of $5 million in capital and can borrow up to $2 from the SBA for each $1 of capital it has. Often SBICs are able to keep defaults to a minimum by identifying a business's trouble spots early, giving entrepreneurs advice, and in some cases rescheduling loan payments.

business plan

6-4. 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). Includes : - Cover Letter - Section 1; Executive Summary - Section 2; Company Background - Section 3; Management Team - Section 4; Financial Plan - Section 5; Capital Required - Section 6; Marketing Plan - Section 7; Location Analysis - Section 8; Manufacturing Plan - Section 9; Appendix

The JOBS Act of 2012 / crowdinvesting / equity crowdfunding

6-4. allows businesses to raise up to $1 million a year from private investors without making an initial public offering. Unlike many crowdfunding options that accept small donations in exchange for perks like T-shirts and other memorabilia, the JOBS Act allows businesses to solicit larger investments in exchange for either ownership shares in the business or a commitment to repay the loan.

angel investors

6-4. are private individuals who invest their own money in potentially hot new companies before they go public.

commercial loan officer

6-4. can help you design an acceptable business plan and give you valuable financial advice as well as lend you money when you need it.

venture capitalists

6-4. individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

MBA

6-4. master of business administration; [Some universities have clubs or programs that provide consulting services by master of business administration (MBA) candidates for a nominal fee.]

market

6-4. people with unsatisfied wants and needs who have both the resources and the willingness to buy.

insurance agent

6-4. will help explain all the risks associated with a small business and how to cover them most efficiently with insurance and other means like safety devices and sprinkler systems.

P2P

6-4.Pee-to-Peer lending or crowdfunding. (eg.; GreenNote and People Capital specialize in lending to students.)

Advantages of Small Businesses entering Global Markets

6-5. (1) small companies provide a wider variety of suppliers and can ship products more quickly (2) small companies give more personal service --- - Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies. - Small companies can usually begin shipping much faster. - Small companies can provide a wide variety of suppliers. - Small companies can give customers personal service and undivided attention, because each overseas account is a major source of business to them.

Disadvantages of Small Businesses entering Global Markets

6-5. (1) financing is often difficult to find (2) would-be exporters don't know how to get started and do not understand the cultural differences between markets (3) the bureaucratic paperwork can threaten to bury a small business