Chapter 1: Starting Your Own Small Business Flashcards
Entrepreneurial Venture
Different from SBO; When the Principle Objectives of the of owner is Profitability & Growth
Small Business
- Independently owned & operated; Not dominate in its’ field; relaxed & less aggressive
- Objectives: Freedom and Financial Independence (to a degree)
Micro-Business
- Only has 1-4 employees; ran from owner’s home; #workFromHome
- is 60% of 5.6 milly employees & brings in $100 billy/yearly spending
Small Business Owner
establishes business primarily to further personal goals, including making a profit
Entrepreneur
has goals of achievement, profit, and growth that’s achieved through Innovation and Strategic Management
Reinvention
Fundamental redesign of a Business, often resulting in reduction in Size and Markets
Reengineering
Redesign of Operations - starting from scratch
Downsizing (rightsizing)
a result of reengineering; reducing the number of employees to increase efficiency
Objectives
the Goals towards which the Activities of the business are Directed
Profit
Revenue received by a business in Excess of the Expenses Paid
Profit Motive
Expecting to make a Profit as the Reward for taking the Risk of Starting & Running the business
Social Objectives
Goals regarding assisting Groups in the community and Protecting the Environment;
Protects interest of parties and make profit
High-Knowledge Industries
40% or more of Human Resources are Professionals, Technicians or other “knowledge worker.”
Discontinuance
a Voluntary decision to Terminate a buisness
Failure
inability to succeed in Running a business
