business entrepreneurship

How many employees can a business have to be considered a small business?

1-500 employees

How much more likely is it for a business to launch if the founder creates a business plan?

260%

What percent of new businesses are still operating after 10 years?

34.6%.

What percentage of the American job market is made up of small businesses? What percentage of US sales are those small businesses accountable for?

99.7% of the American job market is made of small businesses. These small businesses account for 84% of all US sales.

Entrepreneur

An individual who undertakes the creation, organization, and ownership of a business

The video tells us that since 1990, big businesses have eliminated 4 million jobs and small businesses have added 8 million jobs. What is at least one reason big businesses would be eliminating jobs while small businesses are adding them?

Because they are everywhere, and they need employees. They are more flexible and more nimble, they can change to market demand

Corporation

Sub Chapter S Its own entity for legal + financial Costly to set up and keep going Has its own tax return A business entity that is separate and distinct from its owners

SBA microloan

The U.S. Small Business Administration offers several loan programs, some of which cater specifically to startups. One such program is the SBA microloan, which can provide up to $50,000 for working capital, inventory, supplies, furniture, fixtures, machinery or equipment.

Entrepreneurship

The act of setting up a business with the goal of making profit

what is the main idea that entrepreneurs should focus on when starting a business?

The main idea that an entrepreneur must focus on when starting a business is the customer and their wants and needs. Additionally, they should focus on understanding the market and where they stand in it.

Funding

The money business owners require to start, run, or expand a business

What source of funding is used most often to start new businesses?

The most common source of funding is getting loans from themselves or friends and family.

Business Ethics

The set of moral principles that guides a company's conduct

What two possible factors does your business need to have in place in order to be profitable?

The two factors your business needs to have in place in order to be profitable include practicalities and money. Additionally, understanding an area of human distress sets you ahead of others creating products.

What is a reason to separate your business money from personal money?

To protect your personal assets if the business fails

Venture capital

Venture capitalists tend to invest only in high-growth companies, because there's a significant amount of risk involved. If the startup doesn't succeed, the investor won't see a return on their investment. Most venture capitalists want, at minimum, a seat on the board of directors of any company they're financing. However, some will want even more ownership.

Credit cards

When used responsibly, business credit cards can temporarily provide startup funding. If you need short-term financing for key purchases, a 0% introductory APR credit card can be especially useful. However, be sure you have a plan to pay off your balance before the introductory offer expires and the variable APR sets in.

scalable startup

a new company venture that can develop and expand quickly without being bound by its resources or infrastructure

intrapreneurship

a system that allows an employee to act like an entrepreneur within a company or other organization.

Business Plan

Document that describes a new business & a strategy to launch that business

According to the article, what are the three main categories of business funding?

Self funding which is using your own cash on your business, which can be dangerous as it might fail the business. Investors (angel investors) and (venture capitalists), it doesn't involve monthly payments but you have to give partial ownership of your company. Loans, small business loans= full ownership of startup but have to pay immediately

Partnership

Similar to Sole 2 people DBA + EIN A formal agreement made by two or more parties to jointly manage and operate a company

social entrepreneurship

Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or environmental issues. Differs from traditional business entrepreneurship because they are more so focused on changing and benefiting the world than profiting from their company. These companies are typically non-profit and are specializing in fixing a problem within society.

Which structure allows the owner to run the business under their personal name, leaves them personally responsible for debts of the business, and requires them to report the business's profits and losses on their personal taxes?

Sole proprietorship

Small-business grants

Startup business grants can be hard to get (competition is high), but if you can secure one, you're looking at free money for your startup. You don't need to pay grants back or pay interest on them like you would a loan.

Pitch

A brief speech that defines a person, process, product, service, organization, or event and its value

Nonprofit

A business organized for purposes other than generating profit

Small business

A business that has fewer employees and less annual revenue than corporations or other larger businesses.

Sole proprietorship

A business that has just one owner who pays personal income tax on profits earned from the business Small business w/ little risk One person files one tax return w/ owner Not a sperate entity under the law (owner and the business share the same accounts and risk) Personally responsible Can use own name or a DBA

Cooperative business

A cooperative is a business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.

Which of the following best describes the skill set needed for a business's Marketing Director?

A mix of statistics, psychology, and art Purpose: leads and oversees all of the company's marketing efforts from creative to opertations

Innovation

A product, service, business model, or strategy that's both new and useful

Startup

A type of young business that develops a unique product or service and bring it to the market

As your business's Chief Financial Officer, what are the two major skills you will need?

Budgeting and Accounting Purpose: Oversee the organization's financial activities

Difference between S corp and C corp

C corporation = standard (or default) corporation under IRS rules S corporation has elected a special tax status with the IRS and therefore has some tax advantages.

Which structure legally protects the owner(s) from liability and allows the business to file its own taxes to report profits and losses?

Corporation

Crowdfunding

Crowdfunding allows entrepreneurs to raise money for their businesses, typically through an online campaign.

Why might it be important for an entrepreneur to consider ethics in the world of business?

Entrepreneurs should consider ethics in the world of business because it promotes customer loyalty, as it's fair and ethical. You build a good reputation and trust, and you become more hirable. Additionally, you are more likely to keep your employees and stay out of legal trouble.

Why are business plans important

Helps you to understand your market Find who your competitors and similar businesses are Figure out your pricing and supplies Have an overall layout of what your business strategy will be You can take charge, understand your business, and be able to talk confidently about your market. It's proven to help your business grow 30% faster Helps with loans

business's Human Resources

Hiring and training employees Payroll and benefits Health insurance and retirement plans Purpose: managing the employee life cycle

Business Structure

How a company is organized, which impacts things like legal and tax liability of owners

Friends and family

If more traditional lenders aren't an option, family loans may help fund your startup. While these loans may come with little (or no) interest, they can be costly if they begin to affect your personal relationships.

Which structure legally protects the owner(s) from liability but still requires the owner(s) to report profits and losses on their personal taxes?

LLC

Profit

Money that is left after all the expenses of running a business have been deducted from the income

Online lenders

Normally nonbank or alternative lenders, C an be a viable option, especially if you are looking for fast funding. Online lenders usually require less paperwork and collateral and a lower credit score than traditional lenders. The trade-off is, they often offer higher interest rates and more fees.

Which structure requires a DBA ("doing business as"), a personal identification number, and requires the owners to report profits and losses on their personal taxes?

Partnership

Personal business loans

Personal business loans can be a solid option for those with strong personal finances. Loan amounts may be smaller and terms may be shorter than traditional business loans, but most are funded within a week of approval and, depending on your credit score, can have lower interest rates than other financing options.

If Marketing is your public image, then Sales is your...

Personal relationship with customers

How not having a business plan is bad

danger of cash flow challenges which can be hurtful to your business, especially in early stages.

DBA

doing business as

EIN

employ identification number

LLC

limited liability company Shields owners from most legal responsibilities + protects their personal assets Paperwork + $ involved Files tax return w/ owner A business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities

Ethics

the principles of right and wrong that guide an individual in making decisions (moral principles and dilemmas)

Microlenders

the process of connecting a borrower and a lender for a non-traditional, smaller loan. A borrower usually uses microloans if they do not have access to local financial institutions, if they have poor credit, or if they want a loan smaller than what their bank will allow.

What is the top reason entrepreneurs provided when asked why their startup failed?

they ran out of cash and failed to gain new capital