CH 6 BUS

Micropreneurs

*Not everyone who starts a business wants to grow a mammoth corporation. Some are interested in maintaining a balanced lifestyle while doing the kind of work they want to do. Such business owners are called micropreneurs. While other entrepreneurs are committed to the quest for growth, micropreneurs know they can be happy even if their companies never appear on a list of top-ranked businesses.

Manager functions

*planning *financing marketing human resource development accounting *Primary concerns in the start up phase

outline of a comprehensive business plan

-cover letter 1- Executive summary 2- Company background 3- Management team 4- Financial plan 5- Capital required 6- Marketing plan 7- Location analysis 8- Manufacturing plan 9- Appendix

Characteristics of an intrapreneur

-he or she generates profits by leveraging a firm's human financial and physical resources. -someone who uses company's resources to launch new products -a creative person who works within a corporation *Creative people who work as entrepreneurs within corporations. The idea is to use a company's existing resources - human, financials, and physical - to launch new products and generate new profits.

Many people today who need to combine work and family are starting _ - _ businesses.

Home - Based

venture capitalists

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

Small businesses advantages over large business in international trade

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.

What it takes to run a small business

Planning your business. Financing your business. Knowing your customers (marketing). Managing your employees (human resource development). Keeping records (accounting).

The US government agency that advises and assists small businesses by providing management training and financial advice and loans is called the:

Small business administration

A(n) _ is hired to run a business while gaining experience

apprentice

Small business

as one that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts (such as under $2.5 million a year for service businesses). A small business is considered "small" only in relationship to other businesses in its industry.

Business plan

forces potential small-business owners to be quite specific about the products or services they intend to offer. They must analyze the competition, calculate how much money they need to start, and cover other details of operation. A business plan is also mandatory for talking with bankers or other investors.

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of _ graduates.

incubator *Incubators offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help.

A(n) _ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.

market

Enterprise zones

specific geographic areas to which governments attract private business investment by offering lower taxes and other government support. These are also sometimes called empowerment zones or enterprise communities.

entrepreneurial team

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. A team may be better than an individual entrepreneur because team members can combine creative skills with production and marketing skills right from the start. Having a team also can ensure more cooperation and coordination later among functions in the business.