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69 Cards in this Set
- Front
- Back
a person who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something |
Entrepreneur |
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the process of creating and managing a business to achieve desired objectives |
Entrepreneurship |
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Some entrepreneurs who start small businesses have the ability to see emerging ______; in response, they create a company to provide a product that serves customer ______ |
trends, needs |
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A company may ________ by focusing on a particular ______ _______ and delivering a combination of features |
innovate, market segment |
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__________ once available only to the largest firms can now be obtained by a ______ ________ |
Technology, small business |
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any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people |
small business |
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an independent agency of the federal government that offers managerial and financial assistance to small businesses |
Small Business Administration (SBA) |
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Small businesses are _____ to the American economy |
vital |
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More that _____ of all U.S firms are classified as small businesses |
99 percent |
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Small businesses are largely responsible for fueling ___ _______ and ____________ |
job creation, innovation |
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Many small businesses are being started because of ______ ones |
larger |
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one of the most significant strengths of small businesses is their ability to ________ and to bring significant benefits to customers |
innovate |
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Not all innovations are based on new ___________ |
technology |
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Entrepreneurs provide fresh ______ and usually have greater ____________ to change than do large companies |
ideas, flexibility |
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Industries that are especially attractive to small businesses: |
retailing and wholesaling, services, manufacturing, and high technology |
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new firms in these industries initially suffer less from heavy _____________ than do established firms |
competition |
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acquire goods from producers or wholesalers and sell them to consumers |
Retailers |
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Benefits of starting in retail |
exposure is relatively easy; do not have to spend large sums of money on equipment and distribution systems |
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supply products to industrial, retail, and institutional users for resale or for use in making other products |
Wholesalers |
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Small businesses are closer to the final ________ and know what it takes to get them __________ |
customers, satisfied |
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includes businesses that do not actually produce tangible goods |
service sector |
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In manufacturing, small businesses have the benefits of meeting specific _______ ______ |
customer needs |
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a broad term used to describe businesses that depend heavily on advanced scientific and engineering knowledge |
High technology |
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High technology businesses require greater _______ and have higher initial ________ costs |
capital, startup |
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____________ is probably one of the leading reasons that entrepreneurs choose to go into business for themselves |
Independence |
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Small businesses often require _____ money to start and maintain than do large ones |
less |
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small business owner sometimes rely on what to help them save money |
family members and friends |
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Smalls firms can focus their efforts on a precisely defined |
market niche |
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Small firms develop reputations for |
quality and services |
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small-business owners tend to be victims of |
physical and psychological stress |
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Have of all new firms fail within the first ____ years |
five |
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The 3 major causes of small-business failure are |
under capitalization, managerial inexperience or incompetence, and inability to cope with growth |
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the lack of funds to operate a business normally |
under-capitalization |
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_______ _________ is the cause of many business failures |
Poor management |
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Many start-up owners lack |
skills and experience to make good management dcisions |
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Growth often requires the owner to give up a certain amount of |
direct authority |
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the greatest impediment to the success of a business is |
the entrepreneur |
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a precise statement of the rationale for the business and step-by-step explanation of how it will achieve its goals |
business plan |
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a business plan should include |
an explanation of the business, an analysis of the competition, estimates of income and expenses, and other information |
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A business plan must be revised ___________ to ensure the the firm's goals and strategies adapt to changes in the environment |
periodically |
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After developing a business plan, the entrepreneur has to decide on an |
appropriate legal form of business owner ship |
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Types of business ownership's |
sole proprietorship, partnership, or corporation |
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a small business owner must first obtain what to get a business running smoothly |
money (capital) |
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the most important source of funds for any new business is the |
owner |
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Small businesses can also obtain equity financing by finding |
investors |
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persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock |
Venture Capitalists |
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The amount a bank or other institution is willing to loan is based on |
the likelihood of success and the entrepreneur's ability to repay the loan |
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a financial interest in the property or fixtures of the business, to guarantee payment of the debt |
collateral |
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provide personal property as collateral, such as his or her home, in which case the loan is called a |
mortgage |
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agreement by which a financial institution promises to lend a business a predetermined sum on demand |
line of credit |
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suppliers allow the business to take possession of the needed goods and services and pay for them at a later date or in installments |
trade credit |
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trading own products for the goods and services offered by other businesses |
bartering |
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community groups sponsor ____ ______ to encourage the development of particular types of businesses |
loan funds |
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a license to sell another's products or to use another's name in business, or both |
franchise |
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the company that sells a franchise |
franchiser |
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the purchaser of a franchise |
franchisee |
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Franchisees commonly report the following advantages |
management training and support, brand name appeal, standardized quality of goods and services, national and local advertising programs, financial assistance, proven products and formats, centralized buying power, site selection and territorial protection, greater chance for success |
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A franchisee must sacrifice: |
franchise fees and profit sharing with the franchiser, strict adherence to standardized operations, restriction on purchasing, limited product line, possible market saturation, less freedom in business decisions |
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____ _________ must be developed by the entrepreneur |
good judgment |
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offers many types of management assistance to small businesses |
Small Business Administration |
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building relationships and sharing information with colleagues (vital for any businessperson( |
networking |
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Industries such as travel, financial planning, and health care will continue to grow as |
boomers age |
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Millennials do well when training sessions combine ______ with _____ |
entertainment, learning |
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Advances in technology have opened up many new ______ to small businesses |
markets |
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Deregulation of the energy market and interest in alternative fuels and in fuel conservation have spawned many |
small businesses |
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to reduce management layers, corporate staff, and work tasks |
downsize (right-size) |
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More and more big firms are |
emulating small businesses |
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Downsizing makes firms |
more flexible, resourceful, and innovative |
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individuals in larger firms who take responsibility for the development of innovations within the organizations |
intrapreneurs |