BUSI 1301-001 Chapter 6 Entrepreneurship and Starting a Small Business
What are the challenges of home-based businesses?
Getting new customers, managing time, separating work/family tasks.
Name some notable entrepreneurs.
du Pont, McConnell, Eastman, Bezos.
What percentage of U.S. retail sales were online in 2019?
12%
What percentage of new jobs are in small businesses?
65%.
What percentage of all exporting firms do small businesses account for?
98%.
What catches interest and tempts potential investors to read on in a business plan?
A good executive summary.
How long does it take to prepare a good business plan?
A long time.
What is an advantage of small businesses?
Ability to quickly adapt to market needs.
What is an advantage of small businesses in terms of responding to opportunities?
Ability to respond quickly to opportunities.
What is entrepreneurship?
Accepting risk to start/run a business.
How important is getting the plan into the right hands?
Almost as important as getting the right information in it.
How does a microloan program judge worthiness?
Based on the borrowers' integrity and soundness of their business ideas.
Who can provide advice and counseling to small businesses?
Business professors from local colleges or college clubs.
How does a microloan program keep defaults low?
By identifying a business's trouble spots early, giving entrepreneurs advice, and rescheduling loan payments.
What are the benefits of entrepreneurial teams?
Combine creative, production, and marketing skills, ensure cooperation and coordination.
What is an example of an independent marketing research study?
Commercial loan officers and insurance agents.
Why have home-based businesses grown?
Computer tech, corporate downsizing, social attitudes, tax laws.
What is a potential risk for online businesses?
Copycats
What are the sections of a business plan?
Cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, appendix.
What are some hurdles of small business exporting?
Difficulty in finding financing, not knowing how to get started, not understanding cultural differences, too much bureaucratic paperwork.
What are important criteria to consider when choosing a business?
Enjoyment, expertise, market demand
What are the common sources of funding for small businesses?
Family, business associates, banks, finance institutions, community development financial institutions (CDFIs).
How can passions and problems be turned into opportunities?
Fill customers' needs, have skills/resources, sell at reasonable price/profit, get to customers quickly, keep business going.
What is the goal of small businesses?
Fill market needs with quality and service at fair price.
What are some potential restrictions on a home-based business?
Government ordinances, homeowner's insurance
What is critical in managing employees?
Hiring, training, and motivating.
How are businesses classified as 'small'?
In relation to other businesses in their industry
What are some government initiatives to encourage entrepreneurship?
Investor visas, JOBS Act
What kind of outside advice may small businesses need?
Legal, tax, accounting, marketing, or finance.
What is an advantage of small businesses in terms of customer service?
More personal customer service.
What are the four major reasons for entrepreneurship?
Opportunity, profit, independence, challenge.
Who can give insights into the challenges and solutions encountered within the industry?
Other small-business owners.
How many small businesses are there in the US?
Over 30 million.
What advantages does global trade offer for small businesses?
Overseas buyers enjoy dealing with individuals, faster shipping, wide variety of suppliers, more personal service and attention.
What are some low-cost home-based business ideas?
Personal creations, in-home services, repair/skill-based services, consulting, resale, shared-economy opportunities
What is the best way for entrepreneurs to serve themselves and the business?
Recruit and groom employees for management positions.
What qualities does an entrepreneur need?
Self-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty.
What are micropreneurs and home-based businesses?
Small businesses, often home-based.
What types of financial assistance may the SBA provide?
Standard (7a) loans, microloans, SBA Express, Export Express, international trade loans, Community Adjustment and Investment Program (CAIP), 504 certified development company (CDC) loans, CAPLine loans.
What has helped the growth of small business exporting?
Technological advances.
Why are employees of small companies often more satisfied?
They feel challenged and respected.
Why is accurate accounting and recordkeeping important?
To avoid costly mistakes and business failures.
What is the purpose of knowing your customers?
To better serve and market to them.
What is the purpose of Small Business Development Centers (SBDC)?
To help evaluate the feasibility of ideas, develop business plans, and complete the funding application for no charge.
What is the purpose of a microloan program?
To provide very small loans to small-business owners.
What are intrapreneurs?
Use a company's resources to launch new products.
What is the first step in planning your business?
Writing a business plan.