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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

the process of creating and managing a business to achieve desired objectives

Entrepreneurship

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

A company may ________ by focusing on a particular ______ _______ and delivering a combination of features

innovate, market segment

__________ once available only to the largest firms can now be obtained by a ______ ________

Technology, small business

any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people

small business

an independent agency of the federal government that offers managerial and financial assistance to small businesses

Small Business Administration (SBA)

Small businesses are _____ to the American economy

vital

More that _____ of all U.S firms are classified as small businesses

99 percent

Small businesses are largely responsible for fueling ___ _______ and ____________

job creation, innovation

Many small businesses are being started because of ______ ones

larger

one of the most significant strengths of small businesses is their ability to ________ and to bring significant benefits to customers

innovate

Not all innovations are based on new ___________

technology

Entrepreneurs provide fresh ______ and usually have greater ____________ to change than do large companies

ideas, flexibility

Industries that are especially attractive to small businesses:

retailing and wholesaling, services, manufacturing, and high technology

new firms in these industries initially suffer less from heavy _____________ than do established firms

competition

acquire goods from producers or wholesalers and sell them to consumers

Retailers

Benefits of starting in retail

exposure is relatively easy; do not have to spend large sums of money on equipment and distribution systems

supply products to industrial, retail, and institutional users for resale or for use in making other products

Wholesalers

Small businesses are closer to the final ________ and know what it takes to get them __________

customers, satisfied

includes businesses that do not actually produce tangible goods

service sector

In manufacturing, small businesses have the benefits of meeting specific _______ ______

customer needs

a broad term used to describe businesses that depend heavily on advanced scientific and engineering knowledge

High technology

High technology businesses require greater _______ and have higher initial ________ costs

capital, startup

____________ is probably one of the leading reasons that entrepreneurs choose to go into business for themselves

Independence

Small businesses often require _____ money to start and maintain than do large ones

less

small business owner sometimes rely on what to help them save money

family members and friends

Smalls firms can focus their efforts on a precisely defined

market niche

Small firms develop reputations for

quality and services

small-business owners tend to be victims of

physical and psychological stress

Have of all new firms fail within the first ____ years

five

The 3 major causes of small-business failure are

under capitalization, managerial inexperience or incompetence, and inability to cope with growth

the lack of funds to operate a business normally

under-capitalization

_______ _________ is the cause of many business failures

Poor management

Many start-up owners lack

skills and experience to make good management dcisions

Growth often requires the owner to give up a certain amount of

direct authority

the greatest impediment to the success of a business is

the entrepreneur

a precise statement of the rationale for the business and step-by-step explanation of how it will achieve its goals

business plan

a business plan should include

an explanation of the business, an analysis of the competition, estimates of income and expenses, and other information

A business plan must be revised ___________ to ensure the the firm's goals and strategies adapt to changes in the environment

periodically

After developing a business plan, the entrepreneur has to decide on an

appropriate legal form of business owner ship

Types of business ownership's

sole proprietorship, partnership, or corporation

a small business owner must first obtain what to get a business running smoothly

money (capital)

the most important source of funds for any new business is the

owner

Small businesses can also obtain equity financing by finding

investors

persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock

Venture Capitalists

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

a financial interest in the property or fixtures of the business, to guarantee payment of the debt

collateral

provide personal property as collateral, such as his or her home, in which case the loan is called a

mortgage

agreement by which a financial institution promises to lend a business a predetermined sum on demand

line of credit

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

trading own products for the goods and services offered by other businesses

bartering

community groups sponsor ____ ______ to encourage the development of particular types of businesses

loan funds

a license to sell another's products or to use another's name in business, or both

franchise

the company that sells a franchise

franchiser

the purchaser of a franchise

franchisee

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

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

____ _________ must be developed by the entrepreneur

good judgment

offers many types of management assistance to small businesses

Small Business Administration

building relationships and sharing information with colleagues (vital for any businessperson(

networking

Industries such as travel, financial planning, and health care will continue to grow as

boomers age

Millennials do well when training sessions combine ______ with _____

entertainment, learning

Advances in technology have opened up many new ______ to small businesses

markets

Deregulation of the energy market and interest in alternative fuels and in fuel conservation have spawned many

small businesses

to reduce management layers, corporate staff, and work tasks

downsize (right-size)

More and more big firms are

emulating small businesses

Downsizing makes firms

more flexible, resourceful, and innovative

individuals in larger firms who take responsibility for the development of innovations within the organizations

intrapreneurs