Chapter One Flashcards
(32 cards)
Small businesses employ over ____ of employees in the private sector
50%
Entrepreneurs
A person who relentlessly pursues an opportunity, in either a new or an existing business, to create value while assuming both the risk and the reward for his or her efforts
Criteria for defining small businesses
- small size relative to larger competitors
- fewer than 100 employees
- localized business operations
- financing supplied by one person or small group
- has the potential to become more than a “one person show”
Entrepreneurial opportunities
Economically attractive and timely opportunity that creates values for interested buyers or end users.
Reluctant entrepreneurs
Person who becomes an entrepreneur as a result of some severe hardship.
Refugee
A person who becomes an entrepreneur to flee and uncomfortable situation.
Founder
“Pure entrepreneur”. Person who brings a new firm to existence
Administrative entrepreneur
An entrepreneur who oversees the operations of an on going business
Franchisee
An entrepreneur whose power is limited by the contractual relationship with a franchising organization
Entrepreneurial team
Two or more people working together as entrepreneurs
High-potential venture (gazelle)
A small firm that has great prospects for growth
Attractive small firm
A small firm that Provides substantial profits to its owner
Micro business
A small firm that Provides minimal profits to its owner
Lifestyle business
A micro business that Permits the owner a comfortable or desired pattern of living.
Artisan entrepreneur
Person with primarily technical skills and little business knowledge who starts a business
Opportunistic entrepreneur
Person with both sophisticated managerial skills and technical knowledge who starts a business
40% of all new businesses are now majority __________
Female owned
Problems facing female entrepreneurs
- discrimination
- lack of access to credit
- lack of networking
- try to balance work and family life
Millennial entrepreneurs
- have no fear of technology
- idealistic and optimistic
- more collaborative
- build elements of community in the business
- start companies while studying entrepreneurship
- fail fast, learn a lot and keep going
Characteristics of strong entrepreneurs
- strong commitment to the business
- strong internal locus of control
- moderate risk takers
Small businesses comprise ______ of all firms with employees
99.7%
Mentor
A knowledgeable person who can offer guidance from their experience in a given field
Founders as managers
Not always good organizational members
Resource constraints
Small bank accounts and a limited staff
