Small Business and Entrepreneurship: Key Concepts

Vocabulary flashcards covering key terms from the lecture notes on small business and entrepreneurship.

Entrepreneur

People who risk their time, money, and other resources to start or manage a business.

Internal locus of control

The belief that you are personally responsible for what happens in your life.

External locus of control

The belief that forces outside your control determine what happens to you.

Market niche

A smaller segment of a market with fewer competitors.

Crowdfunding

Raising money from a large number of people over the Internet to fund a venture.

Angel investor

An individual who invests in start-ups with high growth potential in exchange for equity.

Venture capital

A firm that invests in high-growth start-ups in exchange for equity and may provide guidance.

Small Business Administration (SBA)

Federal agency that assists, counsels, and protects the interests of small businesses.

Small Business Development Centers (SBDC)

Local offices that provide management assistance to current and prospective small business owners.

SCORE

Free counseling for small businesses from qualified volunteer mentors.

Business plan

A formal document describing a business concept, objectives, and strategies; includes sections like executive summary, market research, marketing/operations, personnel, and financial projections.

Executive summary

A concise overview of the business plan.

Competitive & Industry Research

Part of the business plan describing the market and competitive landscape.

Marketing & Operations Strategies

Section detailing how the business will market and operate on a day-to-day basis.

Personnel & Financial Projections

Section outlining staffing plans and forecasted financial results.

Starting a business from scratch

Launching without existing infrastructure; pros include control and independence, cons include high effort, time, money, and credit challenges.

Buying an Established Business

Purchasing a business with existing concept, relationships, and financing; risks include inheriting prior problems.

Franchise

A business arrangement with a well-known brand and support network; pros include brand, training, and financing help, cons include limited creativity and ongoing royalties.

Necessity entrepreneurship

Entrepreneurship driven by limited employment options rather than opportunity alone.

Per capita income

Average income per person used as a factor influencing entrepreneurship rates.