Businesses
What is the definition of a Start-up?
A start-up is an enterprise that has recently been started and which has high growth potential. Its aim is to be quite dominant in the marketplace with its innovations. The market dominance is seen in the strength of a firm’s offerings and the size of its market share as compared to its competitors.
This venture model offers mentorship, capital, office space, and other resources.
Corporate-supported Start-ups
Name 2 types of groups that offer business capital.
Venture Capitalists and Angel Funding
What is the definition of a Small Business?
Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business. These businesses often set their goals on long-term, stable growth in an existing market.
A type of venture model that does not have unique products or vast sources of funding.
Promising Start-ups
These individuals invest in businesses with high growth potential, in exchange for a share in it.
Venture Capitalists
A business that has recently started and has high growth potential is known as?
Start-ups
Name the different venture models.
•Promising Start-ups
•Venture-backed Start-ups
•Corporate-supported Start-ups
Wealthy individuals (or groups) who may provide star-up capital in exchange for equity.
Angel Investors
What are 2 distinctions between a small business and a start-up?
Small Businesses
Replicate to a large extent an existing model. Examples include a typical restaurant or barbershop.
Growth is constrained
Financing comes from small loans from families/friends and grants.
Benefit from technology
The small business owner must manage all or most aspects of the business.
Start-ups
Innovation is key. Something new is brought to the market.
Growth-oriented. Experiences fast growth. Vision goes beyond the community level to national, regional, and international levels.
Financing comes from Venture Capitalists and Angel Financing.
Technologically-based
The entrepreneur is free from managing the business. He/she is free to innovate, to seek investors and creditors, and to help to promote the business.
The owners must manage all or most aspects of the business.
Small Business
What is the name of the venture model who is often confident as they understand that the Venture Capitalist have placed their ‘stamp of approval’ on their businesses because they have seen their growth potentials
Venture-backed Start-ups