Intro to Business Chapter 6 right

What percentage of non farm businesses in the US are considered small by the Small Business Administration?

97%

Service Corps of Retired Executives SCORE

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

Why don't more small businesses start trading internationally?

1. Financing is often difficult to find. 2. Many people don't know how to get started 3. many do not understand the cultural differences in foreign markets. 4. bureaucratic red tape is often overwhelming.

What are some advantages small business have over large businesses in global markets?

1. small companies provide a wider variety of suppliers and can ship products more quickly. 2. small companies give more personal service.

Small Business Administration SBA

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

Small business

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.

Small Business Investment Company

A program through which private investment companies licensed by the Small Business Administration lend money to small businesses.

Entrepreneurship

Accepting the risk of starting and running a business.

Incubators

Centers that offer new businesses low cost offices with basic business services.

Intrapreneurs

Creative people who work as entrepreneurs within corporations

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, ets them do the kind of work they want to do, and offers them a balanced lifestyle.

Where is the future of some small businesses?

In foreign markets.

Venture Capitalists

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

Why do many businesses fail?

Many small businesses fail because of managerial incompetence and inadequate financial planning.

Why do people want to start their own business?

Reasons include profit, independence, opportunity, and challenge.

What does it take to be an entrepreneur?

Self-directed Self-nurturing Action-oriented Highly energetic Tolerance of uncertainty

What does the Small in Small business mean?

The SBA defines a small business as one that is independently owned and operated, not dominant in its field of operation and meets certain standards of size in terms of employees or sales.

Why has there been such an increase in the number of home-based and Web-based businesses in the last few years?

The increase in power and decrease in price of computer technology has leveled the field and made it possible for small businesses to compete against larger companies- regardless of location.

What are some sources of funds someone wanting to start a new business consider investigating?

There are several sources of capital: personal savings, relatives, former employees, banks, finance companies, venture capital organizations, government agencies etc.

What are special problems small businesses have in dealing with workers?

They find difficulty in finding competent employees and grooming employees for management responsibilities.

What is the first step in organizing a business?

Writing a business plan.

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 owners.

Entrepreneurial team

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

Where can budding entrepreneurs find help in starting their business?

accountants, lawyers, marketing researchers, loan officers, insurance agents, the SBA, SBDC's SBIC's and even college professors.

Market

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

Enterprise zones

specific geographic areas to which governments try to attract private business investment by offering lower takes and other government support.