Chapter 6 Flashcards
(21 cards)
Entrepreneurship
Accpeting the Risk of starting and running a busines
Entrepreneurial Team
A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make and market a new product
Intrapreneurs
Creative People who work as entrepreneurs within corporations
micropreneurs
Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.
Enterprise Zones
Spexiffic Geographics areas to which governemetnts try to attract privates business investment by offering lower taces and other governent support.
Incubators
Centers that offer new businesses low-cost offices with basic business services
Small Business
One that is independently owned and operated
Business Plan
A detailed written statement that descrives the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualificiations of the owners
Angel Investor
Private individuals who invest their own money in new companies before they go public
Venture Capitalists
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses
Small Business Administration
US government agency that advises and assists small businesses by providing management training and financial advice and loans
Small Business Investment Company Program
A program through which investment companies licensed by the smalll business administraction lend money to small busineses.
Market
People with unsatisfied wants and needs who have both resources and willingness to buy.
Service Corps of retired executives
An SBA Office with volunteers from industry, trade associations , and education who counsel small businesses at no cost (except Expenses)
Why Do People Become Entrepreneurs?
- Opportunity
- Profit
- Independence
- Challenge
Characteristics of an entrepreneur:
- Self-directed
- Self-Nurturing
- Action-oriented
- Highly Energetic
-Tolerant of Uncertainty
What Makes a business idea a good Opportunity?
- IT fills customers’ needs
- You have the skills and resources to start a business
- You can sell the product or service to customers before your window of opportunity closes.
- You can keep the business going.
Why are there more micropreneurs and home based businesses than there used to be?
- Technology advancements
- Corporate downsizing with covid 19
- Social attitude changes
- New tax laws loosening restrictions on deducting expenses for home offices.
Outline of a comprehensive business plan
- Cover Letter: Summarize the most attractive points of your project in as few words as possible
- Executive Summary: 2-3 page management summary of the proposed venture
- Company Background: describe operations to date as well as areas of risk & opportunity, etc.
- Management Team
- Financial Plan: five year projections for income, expensesm and funding sources.
- Capital Required
- Marketing Plan: review industry trends etc.
- Location Analysis
- Manufacturing Plan
-Appendix
Advantages of small businesses over large in international trade:
- Overseas buyers like to work with individuals
- Small companies can usually begin shipping faster
- Small companies can provide a wide variety of suppliers
- Small companies can give customers personal service and undivided attention
