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39 Cards in this Set
- Front
- Back
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entrepeneur |
a person who starts a business and is willing to risk loss in order to make money |
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small business entrepeneur |
people who start a small business with their own savings money acquired relatives and friends |
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characteristics of entrepeneurs |
1) focus on profit 2) self-confidence 3) ability to delegate others 4) ability to think creatively 5) driven 6) self-sufficient 7) life-long learner 8) passionate promoter 9) personable 10) ability to asses risk well |
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scalable entrepeneurs |
those seeking to create large businesses by starting on a smaller scale |
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corporate entrepeneur |
the development of new ideas and opportunities within large or established businesses |
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intrapaneurs |
employees within a company who are assigned a special idea of projects and have the resources and capabilities of the firm at their disposal |
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skunkworks |
a special or secret project worked on by a group of employees in an organization |
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serial entrepeneur |
an individual who continuously comes up with new ideas and/or starts new businesses |
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social entrepeneurs |
an individual with innovative solutions to social problems |
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small business |
a business with 500 or less employees |
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Small Business Administration (SBA) |
governmental agency designed to aid in small business development |
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risks for small businesses |
-bad debts created by customers -negative cash flow -increased competition -theft -insufficient insurance coverage -breakdown of machinery and equipment -failure to comply with legislation, regulation, and/or standards -tech issues -securing breaches and intellectual property -high staff turnover |
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business plan |
a detailed plan of how a company plans to achieve its goals |
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SBA 4 programmatic functions |
1) access to capital 2) entrepreneurial development 3) governmental contracting 4) advocacy |
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sole proprietorship |
the simplest form of business ownership operated by one individual |
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unlimited liability |
all debts of the business are the responsibility of the owner |
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partnership |
a business where two or more people share ownership |
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c-corporation |
a business entity owned by shareholders but separate assets and liabilities from them |
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s-corporation |
a special type of corporation that has less than 100 stockholders and avoids double taxation by distributing remaining profits as dividends |
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limited liability corporation (LLC) |
a hybrid type of legal structure that provides limited liability like a corporation with tax benefits and flexibility of partnership |
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sole proprietorship |
adv: easy and inexpensive to form, complete control, low tax rate and income included on personal taxes disadv: unlimited liability, limited funds, personal responsibility for success |
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partnership |
adv: easy and inexpensive to set up, shared financial commitment, shared skills and expertise, motivates employees with partnership incentives disadv: joint and/or individual liability, conflict among partners, shared profits |
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c-corporation |
adv: limited financial risk, ability to raise capital through the sale of stocks, filing taxse separately from owners, ability to offer competitive benefits to employees disadv: expensive, time consuming to start and operate, double taxation, increased paperwork and record keeping |
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s-corporation |
adv: eliminates double taxation, ability to declare profits on individual tax returns, ability to transfer or continue corporation over time disadv: higher levels of structure and operation, close monitoring by IRS |
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LLC |
adv: limited personal liability, less record keeping and lower startup costs, members decide the percentage of the profits or losses each receives disadv: limited life, members must pay the self-employment tax contributions toward medicare and social security |
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franchising |
paying for the use of a firm's successful business model and brand for a prescribed period of time |
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franchisor |
the supplier who allows a franchisee to use the supplier's trademark and distribute the supplier's products or services |
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franchisee |
an individual or business that purchases a franchise |
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franchise |
adv: provides brand name and recognition from the start, allows owner freedoms in operating their own business, increased chance of success, consumer base already established with quality and consistency, support from franchisor to help make business a success disadv: not fully dependent in owner due to contractual agreements, payment of initial fees and ongoing royalties to franchisor, restrictions on product offerings and price, potential for some franchises to damage reputation of other stores |
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acquisition |
one firm purchasing most or all of another company's assets in order to assume control of the target firm |
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merger |
combining of two or more companies into one company |
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join venture |
a partnership in which two or more companies agree to develop a new, combined organization |
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seed capital |
the initial capital used to start a business |
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microloans |
SBA loans up to 50 thousand dollars to help small businesses start up or expand |
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business incubator |
shared facilities to nurture startup forms |
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venture capital
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investors who provide funds in exchange for ownership in a company |
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angel investor |
wealthy individuals who provide capital in exchange for ownership equity |
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factoring |
selling accounts receivables in order to gain funding for a business |
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crowdfunding |
raising money from multiple individuals for a project |
