Becoming an Entrepreneur
True or False:
Everyone who owns or manages a business in an entrepreneur.
False. Not everyone who owns or manages a business is an entrepreneur.
The Small Business Administration considers a business small if it employs fewer than ____ employees.
500
Every business begins with:
a) a customer
b) profit
c) an idea
d) an invention
c. an idea
Define entrepreneur
Someone who take a risk in starting a business to earn a profit.
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is know as what?
Venture Capital
What are two small business advantages?
meeting customer needs and providing unique services.
true or false:
Most business owners enjoy being part of a team?
False. Most small business owners are very independent and prefer to work alone. However, most find team work beneficial to their small business.
Define Small Business Administration (SBA)
A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.
True or False:
The primary reason that businesses started by entrepreneurs close is disagreements with business partners.
False. Primary reasons have more to do with being inexperienced in management and unprepared for the financial and time commitments involved.
Which of the following is not one of the reasons small businesses fail?
a) poor customer credit practices
b) the owner does not have adequate experience
c) a poor business location
d) not enough employees to do the work
d. not enough employees to do the work.
Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called:
a) start-up financing
b) short-term financing
c) long-term financing
d) credit
c. long-term financing
Define Venture Capital
The money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.
Define Business Plan
A written description of the business idea and how it will be carried out, including all major business activities.
What are the six primary reasons that businesses started by entrepreneurs close?
Lack of adequate capital, Low sales, Higher than expected expenses, competitive pressure, an owner unprepared to manage a growing business, operations requiring more time than the owner is willing to commit
What percentage of employees in the U.S. work for small businesses?
Nearly 50% of all U.S. workers are employed by small businesses.
What is the main source of financing for a corporation?
shareholders
Define innovations
An invention or creation that is brand new.
Define short-term financing
The money needed to pay for the current operating activities of a business.
What percent of new business owners run their own business with no help
40%
Identify four characteristics of small businesses
The owner is usually the manager, it operates in one or very few locations, it typically serves a small market, and it is not dominant in its field.
What is the "game plan" in a business plan?
The alternative plans for production, marketing, staffing, and financing are identified.
Define improvement
Define long-term financing
The money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.