Business 101: ch. 5

venture capital

investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Business Plan

A formal written statement that describes in detail; the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications of the owner(s), description of the product or service, an analysis of the market, and a financial plan.

small business administration (SBA)

A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in areas of finance and management, and helps them with federal contracts

Small business

a business with under 500 employees that is independently managed, is owned by an individual or a small group investors, is based locally, and is not a dominant company in its industry.

debt

a form of business financing consisting of borrowed funds that must be repaid with interest over a stated period of time.

equity

a form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business.

Angel Investors

individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds.

intraprenuers

entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.

entrepreneurs

people with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scion and direction of an existing firm.

small business investment company (SBIC)

privately owned and managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses.