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29 Cards in this Set
- Front
- Back
Entrepreneurship
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accepting the risk of starting and running a business
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Why take the risk of entrepreneurship?
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opportunity, profit, independence, and challenge
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What does it take to be an entrepreneur?
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self-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty
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Entrepreneurial teams
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a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product.
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Micropreneurs
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entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle
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Home-based Business Growth
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computers technology leveled the playing field, corporate downsizing, change in social attitudes, new tax laws loosened restrictions on deducting expenses for home offices
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Benefits of home-based businesses
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immediately start business, minimal start-up capital needed, no rent or excessive set-up charges, comfortable working conditions, reduced wardrobe expenses, no commuting, tax benefits, elimination of office politics, low risk for trial and error
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Downsides of Home-based businesses
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difficult to establish work habits, limited support system, isolation, limited work space, clients uncomfortable coming to home, zoning restrictions, success 100% based on personal effort
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Affiliate Marketing
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an online marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website
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Intrapreneur
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a creative person who works as an entrepreneur within a corporation (launch new products using a company’s existing resources
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Immigration Act (1990)
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created “investor visas” that encourage entrepreneurs to come to the U.S.
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Enterprise Zones
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geographic areas where governments attract private business investment by offering lower taxes and other forms of gov support
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Incubators
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offer new businesses low-cost offices with basic services
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Small business
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independently owned and operated, not dominant in its field of operation and meets certain standards of size
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Advantages of small business over big business
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more personal customer service and quick response time
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Increase chances of small business success
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pay attention to customers, choose “unattractive: neighborhoods, product cannot be easily mass produced, business is in a growth industry, owner pays attention to new competitors
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Major business functions
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planning, financing, knowing customers, managing employees, and keeping records
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Business plan
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a detailed, written statement that describes the nature of the business, the target market, the advantage the business will have over competition and the resources and owners’ qualifications
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Sources of capital
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personal savings, relatives, former employers, banks and finance companies, government agencies, angel investors, and venture capitalists
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Venture capitalists
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individuals or companies that invest in new businesses in exchange for partial ownership
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Community Development Financial Institutions (CDFIs)
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(1980s) play huge role in economic recovery
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JOBS Act (2012)
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make crowdfunding more accessible (Kickstarter, Indiegogo)
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Small Business Administration (SBA)
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U.S. gov agency that advises and assists small businesses by providing management training and financial advice (SBA microloan program = 1991, provide very small loans to small business owners)
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Small Business Investment Company (SBIC)
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a program through which private investment companies licensed by the SBA lend money to small businesses (must have minimum $5 million in capital an can borrow $2 for every $1 of capital)
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Small Business Development Centers (SBDCs)
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funded jointly by the federal government and individual states = evaluate feasibility of your idea, develop your business plan, and complete your funding application free of charge
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Market
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consumers with unsatisfied wants and needs who have both resources and willingness to buy
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Business plan sections
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strong cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and appendix.
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Advantages of global trade for small businesses
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faster shipping, wide variety of suppliers, more personal service and attention, deal with individuals
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Disadvantages to small businesses doing business globally
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difficulty in finding financing, lack of knowledge on exporting goods, cultural differences between markets, bureaucratic paperwork
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