Entrepreneurial & Small Business Development
Local Government
Zoning Laws Occupancy Permits Certificate of Use or Zoning Use Permits Building Change Permits City Street or Sidewalk Permits Boiler and Pressure Vessel Codes Housing and Construction Codes Air Quality Permits Miscellaneous
Technology Based Incubator Development
Usually associated with colleges, universities, federal research or medical center to provide the source of research and technology. Fostering high growth technological development requires extra marketing, financial assistance and sophisticated technical assistance.
Six Business Legal Structures
Sole Proprietorship General Partnership Limited Partnership Limited Liability Corporation S Corporation C Corporation
Small Business Incubator Services & Advantages
Low Rent- below market rate/subsidized rent. Shared Support Services Network Opportunities
Most net new jobs are created by businesses how old?
1-5 years old.
Small Business Success rate
70% survive in two years, 50% five years, 33% 10 years, 25% fifteen years or more
What is a market niche?
A narrow market segment that is underserved and has easily identifiable needs.
Financial Statements
Balance Sheet- assets, liabilities, equity Income Statement (profit & loss statement) Statement of Cash Flows
Business Narrative
Business Location Description of Product of Service Market Segmentation/Identification Industry/Competitive Analyses Profiles of Members of the Management Team Descriptions of Staff Positions Overall Schedule/Timeline Community Benefits
Technical Assistance Available to Small Businesses
Business plan development- SBDC, SCORE Assistance with grant and loan applications Training and managing staff Advice regarding financing, marketing and product development Improving the design of a product or the manufacturing process Accounting and other record-keeping functions Site selection and workforce development assistance
Non-Federal Sources of Technical Assistance
Chambers of Commerce Community Colleges Workforce Development Career Centers Lawyers Accountants Business Roundtables Small Business Incubators
Business Plan Components
Cover Sheet Executive Summary Table of Contents The Business Narrative Financial Data Supporting Documents
Incubator Facility Managers
Economic Development Organizations 31% Government 21% Academic Institution 20% No Sponsoring Entity 8% Hybrid 8% For-Profit Entity 4% Other 8%
Small Business Serve As
Employers Tax Revenue Generators Economic Supporters-recirculation of wealth in local economy Property Owners and Renters Providers of Economic Stability- more likely to stay in community
Executive summary
Highlights key information contained in the body of the business plan. No longer than one page. Contains a series of one or two sentence answers to the following questions: What is the business? What product or service does the business provide? What is the target market and how will the business differentiate its product from other competing products in the marketplace? How much money is needed, and what will this new financing be used for? How will this improve the business? How will the loan be repaid? What unique management team strengths and backgrounds will enable them to achieve the business objectives?
Cover sheet
Includes business name, full address, contact information, names of principals, and lending institution if being submitted to one
Federal Taxes
Income Taxes Employer and Empoyee Social Security Tax (FICA) Federal Unemployment Tax (FUTA) Excise Taxes- charged for certain services that put burden on federal infrastructure like heavy trucks
Community Development Centers
Non-profit organizations that devote their time to assisting in real estate development projects, community revitalization efforts and small business/entrepreneurial assistance.
Capital Equipment List
Office furniture, business machines, store fixtures, Machinery used to make products or deliver services, Delivery vehicles.
Types of Business Networks
Peer Networks Mentor Networks
Entrepreneurs have the following strongs
Problem Solving Self Confidence Persistent Strong Communication Project/ Goal Oriented Risk Taking Diligent Good Networking Skills Ambition Decision Making Leadership
What is a small business
SBA defines a small business as entities with less than 500 employees.
What is the best way to determine what specific needs businesses have/what services to offer?
Survey existing local businesses
What do entrepreneurs need from Economic Development
They are driven, have strong leadership skills, creative, and remain motivated in the face of setbacks. They do however need training, technical assistance, capital, and networking opportunities.
Industry Analysis
Will provide the facts that convince the readers that the business idea is a sound one. It is essential to demonstrate a thorough understanding of the industry, the market, and specific competing firms. Answer: Are firms entering or exiting the industry? How do firms in the industry compete? How do firms deliver the product to consumers and/or retailers? What impact will political, environmental, social and technological changes have on the industry? How do firms in the industry obtain financing? Are there any emerging trends in the industry?
How many small businesses in the U.S?
over 29 million small businesses Have generated 64% of new jobs in last 15 years
Three Basic Legal Structures for Starting a Business
Sole Proprietorship Partnership Corporation
What do Business Networks Offer?
Information Counsel Encouragement Leads Access to resources
What is a business incubator?
It's a pro-active economic development tool and resource that provides many economic and entrepreneurial advantages to its tenants including flexible space, subsidized rent, networking opportunities, and shared general services.
State Taxes/Laws
State Occupational License Workers Compensation Corporate and Personal Income Tax State Sales and Use Taxes Real and Personal Property Taxes State Unemployment Insurance Business and Occupational Tax Public Utilities Tax Leasehold Excise Tax State Intangible Tax Hazardous Waste Generator Tax
Community Revitalization Based Incubator Development
Tenants tend to be small independently owned and operated firms in a narrow geographical market. Typically sponsored by public or non-profit organizations, these incubators are located in areas with low economic activity like aging industrial districts, declining commercial areas, or areas experiencing plant closings or major layoffs. They focus on providing tenants with business basics such as marketing, cash flow management and accounting control making them relatively low-cost compared to other incubator types.
Four Basic Areas in Which Incubators Assist Tenant Businesses
The Incubator Organization/Environment Multi-tenant Real Estate Business Consulting Services Shared Office Services
What is the most important part of all business ventures?
Development of a sound business plan
Before an economic gardening program is put in place, what step must be taken?
EDOs may need to influence the community's perception of entrepreneurship and risk tolerance. Sometimes changing culture and perspective on how growth happens is more difficult than implementing the program.
First Two Steps when Setting up a Financial Assistance Programs
First Step- Determine why there is a problem accessing capital in the local area. Second Step- Determine what role the organization will play in solving client's financing problem. Can start RLF, leverage private sector investment through programs like SBA 504, loan guarantees, etc.
Characteristics of a Small Business
Innovation-more than half of the nation's technological innovations originate from small businesses. More likely to experiment with new products and processes than large businesses. Ties to the Community- Less likely to relocate and more likely to hire local residents. Join local chambers, support charities, sponsor neighborhood events. Flexibility- Small business adapt more quickly to rapid changes in market demand. Start with Little Capital- Around half of small businesses start with less than $20,000
Economic Diversification Based Incubator Development
Many communities encourage the development of solid, job-creating businesses such as manufacturing or service firms to promote economic development rather than high risk, high growth firms. These offer stable employment base and keep the local economy competitive and strong. Require moderate equity and financial assistance. Public sector can play a role but only if the organization has a clear connection to a community's overall economic development plan.
When dealing with giving small businesses technical assistance, EDOs:
Must know what resources are available to them Understand the types of questions they will field from small business owners Be prepared to refer clients to the resource that can best meet their needs
Four P's of Marketing
Product Price Placement Promotion
Limited Liability Corporation
Provide the protection of a corporation with the flexibility of a corporation. Combines the limited liability that a corporation affords its shareholders with the tax status a partnership receives. Similar to a corporation, responsibility for claims against the corporation rests with the corporation itself and not with the individual owners. Like a partnership, income and losses are distributed to the owners of the business.
Marketing Strategy
Stating what marketing will be done, how the marketing will be done, and who will be doing the marketing. The Four P's of Marketing is a good format.
The Income Statement
Summarizes the income, expenses, and profitability of a business over a certain period of time. Net Sales Revenues Cost of Goods Sold Gross Profit Other Income Sales and General Administrative Expenses Net Income
A Community's Small Business Development Strategy Depends on:
Surveying Neighborhood Local lending institutions Evaluating existing services Availability of credit in community
Chambers of Commerce
They are the primary advocates for businesses in a designated area. Primarily member ship based, chambers focus on issues facing local firms, giving firms a voice in the legislature and the community, and keeping businesses up to date on issues that are important for their growth. They offer services such as referral, workshops on health care, and one on one consulting. Usually 501(c)6 Business League.
In order for an incubator to be financially solvent it must ensure
1) There are sufficient tenant businesses to fill an incubator 2) The incubator is competitively responding to market demands
Balance Sheet
Assets- economic resources owned by or owed to the business. Include property, cash, accounts receivable, inventory. Current assets (will mature into cash in 12 months or less) and non-current assets (greater than 12 months). Liabilities- Obligations of the business. Loans, Accounts payable, deferred revenue (gift cards or gift certificate). Current or short term debt (12 months or less) and non-current or long term debt. Debts paid in installments are called current portion of long term debt (year's worth of installment payments) Equity (or net worth)- is the amount of claim the owners or stockholders have to the busines. Equity increases either through capital investment by the owners or profitable operation/retained earnings of the business. Profits not reinvested are paid out to stockholders in the form of dividends
What is SCORE?
Service Corps of Retired Executives is a volunteer organization made up of over 10,500 working and retired executives. They educate entrepreneurs and promoting the formation, growth, and success of small businesses. They provide inexpensive workshops and publish articles to help train emerging business leaders.The goal of the program is to tap into and retain the knowledge of seasoned executives paving the way for better business practices. Have helped nearly 8 million new businesses.
Federal Programs Providing Technical Assistance
Small Business Development Center (SBDC) Service Core of Retired Professionals (SCORE) SBA Microenterprise Program US Department of Agriculture Internal Revenue Service
What are SBDCs?
Small Business Development Centers are a nationwide network of one stop centers for small business technical assistance that have 50% of funds provided by SBA. They are often housed at universities, community colleges, chambers of commerce and EDOs. They provide services free of charge to small businesses. They provide three major types of service: Basic Business Counseling Training Programs Information Research Services
Three Main Resources Available to Small Businesses
Technical Assistance Providing Business space Financial assistance
Three Different Stages of Entrepreneuial and Small Business Growth for Economic Gardening
Start Up Companies: New business ventures where innovation drives a person or a group of people to formally organize and start a business. Second stage companies: Companies that have grown past the startup stage but have not grown to maturity. Enough employees to exceed the comfort of one owner/CEO and benefit from adding professional managers but they do not yet have a full professional management team. Gazelles or High Impact Companies: Gazelles often emerge in business to business markets (usually in deregulated or newly emerging industries) where they can capitalize on niche opportunities. Most importantly, gazelles experience a rapid stage of expansion, growing at least 20 percent per year over the previous four years.
Public policy supports entrepreneurism at the local level for the following reasons
Start-up and growing small businesses add to the net sum gain of jobs Homegrown businesses are more likely to stay loyal and remain in the area With the increased use of technology to transfer information, more people are able to run businesses out of their home Small business respond quickly to market shifts, whereas large manufacturers do not have the same felxibility
Minority Business Opportunity Centers (MBDCs)
Supported by MBDA and funded by private and federal dollars. Work to create conditions in the marketplace that foster minority business success. Provide in-depth technical advice at a low cost. Run by various non-profits, government agencies, educational institutions, Native American tribes, and privates businesses. MBDA District offices are responsible for all MBDCs. Some services include: general management assistance, finance and accounting assistance, and personnel management.
Three Incubator Objectives
Technology Based Development Economic Diversification Community Revitalization
Three Incubator Specialties
Technology-Based Development Local Economic Diversification Revitalization
Information EDOs can Share with Small Business
The Territory- should know the general business environment of the area. Knowing the business types in area, what business sectors are represented, what businesses typically flourish and which do not. Problems- Must be constantly aware of the problems small businesses struggle with. Monitoring and evaluation or success rate of types of businesses. Ability to identify businesses that are succeeding and ones that are stagnant or heading towards failure. Local Business History- EDOs can inform new business owners of the history of business success in the area. By knowing trends, an ED can assist an entrepreneur select the best location for their business to ensure success. Business Climate- Data collection through surveys/other tools to get a feel for the business climate and what services are in demand. This information is used to refine technical assistance programs. How to Relate- One of first tasks of an EDO is to relate to its clients.EDOs also need to know how to relate to banks, politicians, govt agencies, etc. to communicate the message in a way that all can understand. How to Market- Small business resources go underutilized because business owners are unaware they exist. Ways to promote services: articles in newspapers, social media, periodic mailings, announcements at business association meetings, word of mouth/referral When to Quit- It is important to remind a struggling owner that it may be better to let go of the business and hurt the ego than pull resources away from raising a family.
Incubator Goals
Assist new businesses establish self sufficiency Encourage tenant businesses to leave once they no longer depend upon incubator support
What is a microenterprise?
Usually employ less than 5 people and are often home-based businesses.
What Standard Indicators Should EDs Review to Understand their Community's Entrepreneurial and Small Business Needs?
- Relative amount of IP generated in region - Patent activity - Historical data on new business formation and business death rates - Experience in similar geographies - Analysis of County/Regional Rankings of education attainment, employment in computer sectors, employment in engineering sector, percentage of technology jobs per 1000 workers - Percentage of businesses with less than 20 employees - Track record and occupancy rates of other proximate incubators - State/Regional EDO support of ED through incubation
Competitive Analysis
-After industry characteristics have been identified, the strengths and weaknesses of competing firms must be realistically assessed. -Entrepreneurs should find out how major competitors and industry leaders are doing. This includes researching their financials, products, and marketing strategies -Assess what each competitor offers in response to various customer needs and decide what the new business will offer in comparison
Incubator Feasibility Steps
1) Assessing the market niche of small businesses likely to seek space in a new incubator. It is essential that incubator operators identify their market niche so they can make sound real estate and program design decisions. 2) Assess the community's business climate and network of organizations that affect Economic Development 3) Analysis of potential incubator sites 4) Cash Flow Analysis to determine minimum rental rates to break even 5) Management Structure 6) Legal Issues
Incubator Development Feasibility Study Advantages
1) Assist when making real estate and service planning decisions 2) Increase community awareness of the project 3) Allow incubator administrators to establish important community contacts 4) Serve as a requisite for application of federal, state, and local funds 5) Provide information to make informed decisions
Ways to Segment Markets:
1) By demographics 2) By Psychographics (psychological influences on consumer behavior) 3) Geography 4) Behavior 5) Businesses Will help to identify who and where the primary business customers are.
How to Identify a Market/Segment a Market
1) Classify the venture's industry and the principal consumer groups within that industry 2) Describe the markets major segments Market research divides the consumer market into relatively homogenous groups with common preferences and needs. 3) Determine what motivates purchases and what marketing strategy will capture the target markets.
Five points to address before writing a business plan:
1) Express the reasons why customers will but and use the product or service, rather than the competitors products or services 2) Explain why larger competitors will not copy the product or service and push the new venture out of the market with lower prices, wider distribution, and more promotion 3) Project adequate financial returns and achievable financial needs in a simple income statement and balance sheet 4) Describe the background knowledge, skills, and managerial abilities that make the entrepreneur able to start this venture and contribute to its success 5) Define the personal goals, current needs, and future interests that make the entrepreneur willing to devote the next five to ten years to the venture's growth and success
Two main questions EDOs ask any interested entrepreneur
1) How much relevant business management experience do they have in this field? 2) How much of your own money will you be willing to put into this business enterprise?
How to Become Certified as a Woman Owned Business:
1) Provide clear and documented evidence that at least 51% or more of the business is owned, managed, or controlled by women. 2) Prove that the business has been open for at least six months 3) Be a U.S. citizen or legal resident alien
Most Common Barriers to Entrepreneurs Business Growth
1) Securing Capital- lack of collateral, lack of credit history, lack of equity, riskiness of start-ups, small loan amounts not attractive to banks, cost of loans 2) Effective Management Skills- Most business failures are attributed to poor management. Many new businesses cannot afford the funds or time to acquire necessary business/management skills. 3) Access to Markets to Sell Products or Services-underestimate the importance of market studies or do not have access to quality data.
Ways that Education Institutions can assist Economic Gardening
1) Tech-transfer & Commercialization intermediaries and offices 2) MBA & other advanced business degree programs assisting with research 3) Community college entrepreneurship courses and research in specific industries and sectors.
For effective marketing, target areas where:
1) The market is not being served; or 2) Consumer needs are currently not being adequately satisfied, or 3) Growth potential for new provider remains
What is lateral thinking?
An alternative problem solving method that does not rely on using traditional step by step common logic. A person uses lateral thinking to move from one known idea to creating new ideas. Edward de Bono defines four types of thinking tools: -Idea generating tools that are designed to break current thinking patterns-routine patterns, the status quo -Focus tools that are designed to broaden where to search for new ideas -Harvest tools that are designed to ensure more value is received from idea generating output -Treatment tools that are designed to consider real-world constraints, resources, and support
What is economic gardening?
An economic development approach that focuses on growing businesses and jobs within the community through entrepreneurial support programs rather than recruiting employers with attraction activities. Was developed in Littleton Colorado in the 1980s. Requires investing in business intelligence services that help entrepreneurs, start-ups and existing businesses of all sizes. Philosophy is to focus on businesses that create a niche instead of produce a commonality. Niche businesses have a competitive advantage in the local community versus a business that can have more success elsewhere.
Economic Gardening Traits:
Assist businesses that create niche, not produce a commonality Focus on identifying and nurturing businesses with most growth potential Do not focus on assisting specific sectors, assist GOOD companies Provide business intelligence services such as GIS planning and marketing research. Offer value added, in-kind assistance tailored to the businesses needs.
When Working with Start Up or Second Stage Companies, Main Features of a Gardening Program are:
Connectivity: An environment of teaching, mentoring, and networking, especially in post secondary institutions. Market Research: A hallmark of economic gardening is the emphasis on higher power tools for competitive intelligence- including the use of marketing databases, GIS software, trademark research, web optimization, and other value added, knowledge-based tools. Community and Workforce Development and Infrastructure: entrepreneurs thrive in an environment rich in community assets including education, community amenities, meeting places and incubators.
Ways Communities have empowered their entrepreneurial culture:
Converting grocery stores into local good production centers Creating a single, agency driven overlapping network of investors and entrepreneurs Teaching people how to network and providing networking opportunities Turning public libraries into economic gardening hotspots Creating a Business Plan Awards Program Establishing an Entrepreneur Day at local high schools Building an Entrepreneur Hall of Fame Recognizing home-based businesses and helping them grow
Business Life Cycle- important to determine technical assistance to provide
Creating the Business Idea- ED will need to ask entrepreneur to vocalize their business idea and help client determine if they are ready to make the commitment. Important to determine if the entrepreneur has thought the process through and ready to deal with consequences good or bad. Formalizing the Business Plan- ED should be prepared to assist with business plan development, marketing planning, and financial projections. Entrepreneur should have fully developed product and identify source of financing. Opening the Business- Implementation of the business plan. ED should instruct business how to manage cash flow, accounting, inventory. Give entrepreneurs tools to monitor progress and learn from mistakes. Expansion and Growth- ED can provide assistance with how to access local talent, workforce devt programs, how to financially support growth, identify new buildings/sites.
Questions to Pose to a potential Entrepreneur
Decided what type of business venture they would like to start? What qualifications do they have? Determined if it is feasible to make a profit in the chosen business in this particular community? Researched their target market and identified their target niche? Written business, financial, and marketing plans? Chosen a place to set up the business, taking into consideration traffic/parking/visibility/delivery space? Make a list of materials needed to start the business? Identified potential funding sources? Learned how to effectively manage bookkeeping and financial statements? Consulted legal teams and regulatory agencies if needed? Weighed the disadvantages of being an entrepreneur? Considered the changes in personal and family conditions, including long business hours? Developed a strong sense of self reliance?
Entrepreneurs and small businesses owners need help in the following areas:
Determining what legal enterprise they should form Deciphering specific legal regulations and codes Understanding applicable tax requirements Writing a business plan Access to capital Financial management techniques Market and competition analysis Workforce development Commercialization and technology-transfer programs Exit strategies
Minority Business Development Agency (MBDA)
Developed by U.S. Department of Commerce. Was created specifically to encourage growth of business owned by ethnic and racial minorities. Includes socially and economically disadvantaged individuals specifically: Hispanic Americans, Asian and Pacific Island-Americans, Alaska natives and Native Americans, African Americans, and Hasidic Jews. Also operates Native American Program through Native American Business Development Centers.
Economic Gardening Support Organization: Edward Lowe Foundation
Edward Lowe Foundation- created to provide informational and educational support to second-stage entrepreneurs. No grants, but primary goal is to provide a peer support system that facilitates interaction between entrepreneurs to increase knowledge sharing. Developed an award program called "Companies to Watch" and the www.youreconomy.org website which provides an updated pool of performance data on businesses, trends, and local economy.
Technical Assistance Resources
Federal Govt State Govt Small Business Administration (SBA) and Small Business Development Centers (SBDCs) USDA HUD Service Corps of Retired Executives (SCORE) Minority Business Development Agency (MBDA) Youth entrepreneurship programs Community organizations Chambers of Commerce Business assistance centers Incubator/accelerators Economic gardeners Commercialization intermediaries/Tech-transfer programs Educational institutions (K-12, community colleges, universities)
Most Common Causes for Small Business Failure
Insufficient preparation (little knowledge of chosen industry) Inability to deliver the product (delivery and distribution not yet created, or does not meet demand) Inconsistent quality of products/services Uncompetitive product design or packaging Underestimating the competition Under-capitalization Lack of knowledge or experience with advanced technologies and manufacturing methods Problems selecting appropriate equipment, vendors and consultants Lack of understanding of government regulation
What is the National Minority Supplier Development Council (NMSDC)
It is a business membership organization that certifies and matches more than 15,000 minority owned businesses with member corporations that wish to purchase goods and services. Certification is designed to ensure that a small business is actually 51% majority owned, controlled, or operated by the applicants to ensure eligibility for programs.
What is a business plan?
It is a guide for future business growth and development, and should include sales and profitibility milestones It identifies customers and target markets, and the methods by which the product or service will be sold It analyzes the competitive environment, including the strengths and weaknesses of competitors Most importantly, it will open the doors to the investment process
% of Incubator Types
Mixed Use 54% Technology 39% Manufacturing 3% Service 1% Other 4%
Sole Proprietorship
One person having sole ownership and control over a business. Most common business structure. Advantages are only one person to make decisions, reduces paperwork, permits owner to retain all profits, allows for quick and efficient termination of the business. Disadvantages are raising capital, personal liability, and discontinuation at time of owners death. Always have option of changing to a partnership or corporation.
S Corporations
Organized under Sub Chapter S of the IRS Code. Under this code, individual shareholders pay corporate net income personally, as thought it were a partnership. Income and expenses are divided among the shareholders in proportion to their holdings, and profits are taxed at the shareholders respective tax rates.
Youth Entrepreneurship
Partnership between EDOs and youth organizations. Unlike business management courses and corporate exposure programs, youth entrepreneurship is multi-faceted and hands-on in training approach. One such program is the Junior Achievement Award. These programs: -Teach children about their environment and how to view it differently. They teach lateral thinking, an alternative method of problem solving. -Show low income children the opportunities that surround them by examining different types of business that serve their neighborhoods. -Emphasize attitudes and basic values, such as optimism and perseverance which are characteristics of entrepreneurs. -Promote the values of microenterprises, such as mom and pop shops which support much of the economy. -Proide practical applications of these ideas to help children internalize the concepts.
What are Mentor Networks?
Program in which older, more experienced business owners are matched up with newer entrepreneurs to share experience and avoid common pit-falls. Mentors provide entrepreneurs with real world experience in arranging, financing, managing staff, managing cash flow, selling products, etc. Mentors may also be able to connect entrepreneurs with sources of capital.
Statement of Cash Flows
Provides information about a company's cash receipts and cash payments. In essence, it shows the sources and uses of cash. Estimated projected sales Costs and Expected Forecast Cost of Sales/Manufacturing Selling, General and Administrative Expenses
SBA Pre-Qualification Pilot Loan Program (Pre-Qual)
Provides support and assistance in the 7a small business loan application process to those segments of the business community that are traditionally underserved by lenders. Was developed to assist: minorities, women, veterans, exporters, rural markets & certain designated geographical areas and industries. To be eligible a business must be owned 51% by one of the groups above. Export loans are made to projects for the intention of significantly expanding existing export activities or developing new export markets.
Incubator Manager Goals
Public/non-profit- Job growth, economic diversification, tax base expansion, building rehab/reuse, improving business climate/image Academic Institutions- commercializing research and technology, employment opportunities for students, faculty, improving image of the institution to potential researchers, faculty, and students Private sectors- Desire either substantial equity stake in tenants or return on investment in commercial and industrial real estate. Job growth and business development while not primary goals of private sector incubators, are positive indirect impacts.
C Corporations
Refers to a standard state-formed corporation. The corporation assumes a separate legal and tax life distinct from its shareholders. The corporation pays taxes at a corporate income rate and files corporate tax forms each year (IRS form 1120). Unlike an S corp, there is no limit to the amount of share holders. Foreigners can hold shares in C Corps unlike in S corporations. C Corporations can carry corporate losses forward into future years.
Limited Partnership
Requires at least three people, two general partners and a limited partner. General partners have the same responsibilities if they were participating in a regular partnership. In contrast, limited partners are not involved in the regular management and in turn have limited liability. Thus they are different in that at least one of the partners has less responsibility and involvement.
General Partnership
Requires two or more people included in the business enterprise. Advantages are the organization has multiple financial and administrative resources to rely on, and that profits are not taxed directly. Disadvantages are that owners bear unlimited liability for all debts and liability. Also, the enterprise ends with the death of one of the partners, and any partner can change the orientation of the organization.
Basic criteria to screen applicants for entrepreneurial training
Self-selection Target group characteristics Commitment Merit of the business idea Informal judgment about the candidate's personal situation and ability to complete the program
What are Peer Networks?
They are networks made of peer entrepreneurs that can discuss experiences, ask questions, and discuss the issues they share. They offer encouragement, support and answers to questions. It's easier to open up to peers because they are going through the same issues, growing pains. Also a good way to market products and services to complementary businesses or pool resources to reach further market penetration.
What is the role of economic developer in economic gardening?
To act as a facilitator, leveraging public and private sector resources available in the region and beyond. EDO practicioners should conduct a thorough assessment of the existing entrepreneurial climate in the area. This assessment will make it easier to determine what services and programs will have the greatest positive impact on the local community.
Information Dissemination
Way that EDOs use to get information to businesses. Comprehensive calendar of activities, including business round tables, informal business network lunches, chamber of commerce meetings, minority business leagues, etc.
What types of questions should be on a business survey?
What sort of business assistance do they want? What business assistance efforts are most helpful? In what areas of business management do they feel most weak? Do existing businesses use technical assistance providers? How informative and useful are existing assistance providers services? How many technical assistance providers are they aware of? What suggestions does the business have for improving technical assistance services?
