Small to Medium Enterprises
How many employees does a SME generally have?
199 or less
Name THREE personal qualities that influence a SME
Qualifications, skills, motivation, entrepreneurship, cultural background, gender
What is forecasting?
Analysing revenue vs cost
Name THREE critical issues in business success and failure
Business plan, staff management, identifying trends, sustaining competitive advantage, avoiding over-extension of finances, technology, economic conditions
What percentage of SMEs fail within the first three years?
Approx. 33% - 1 in 3
New, existing, franchise
What THREE things must be monitored in the business planning process?
Sales, budget, profit
Describe one way that a business can maintain competitive advantage
Differentiation, innovation, cost management, cost leadership
Define insolvency
When a business is unable to pay its debts - both current and future
What are the TWO forms of finance available to a business? Give a positive and negative for each
Equity - asset but finances are impacted
Debt - easy(ish) access but interest is charged
What is the Break Even Cost formula? What does it measure?
Total all costs divided by quantity
The cost at which you need to sell a good for in order to break even - no profits, no debts
Name THREE impacts that an economic downturn can have that impact businesses
Higher unemployment, lower inflation, less economic growth, less access to lending, increasing costs
Why are SMEs more likely to succeed in regional towns?
Less competition
What are THREE legal considerations when starting a business?
Business name, zoning and health regulations
What are the FOUR resources considered in the business planning process?
Operations, Marketing, Finance, Human Resources
What does Trend Analysis track?
Total sales, profits, costs and specific product/service sales over a set period of time
What is outsourcing? How does it help SMEs?
Outsourcing = seeking external support services
Benefit to SMEs = experts, more supports, mentorship from experienced providers
What are the FOUR types of taxation that impact businesses?
Federal and state taxes, local rates and charges
Describe ONE way that a business can take corrective action if needed
Increase cost of goods/services; adjusting the business plan; inventory control; budgeting; staff training
Provide ONE example of technology leading to business failure
Blackberry or Kodak
*teacher discretion*