Entrepreneurship

Small Business

An owner-managed business with fewer than 100 employees.

New Venture

A recently formed commercial organization that provides goods and/or services for sale.

Entrepreneurship

The process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on it.

Entrepreneurs

People who recognize and seize opportunities.

Intrapreneurs

People who exhibit entrepreneurial characteristics and create something new within an existing firm or organization.

Franchise

An arrangement where a buyer purchases the right to sell the product or service of the seller.

Business Plan

A document that describes the entrepreneur's proposed business venture and outlines its marketing plan, operational and financial details, and manager's skills.

Equity Financing

Financing through personal savings, investments from friends and relatives, private investors, and venture capitalists.

Debt Financing

Financing through financial institutions and agreements with suppliers to delay payment.

Sole Proprietorship

A business owned and operated by one person.

Partnership

An establishment when two or more individuals agree to combine their financial, managerial, and technical abilities to operate a business for profit.

Corporation

A business that is a separate legal entity, liable for its own debts, with owners' liability limited to their investment.

Public Corporation

A corporation whose shares are widely held and available for sale to the general public.

Private Corporation

A corporation held only by a few people and generally not available for sale.

Cooperative

A business owned and democratically controlled by the people who use its products and services.

Reasons for Success

Hard work, drive, market demand for the product or service, managerial competence, and luck.

Reasons for Failure

Managerial incompetence, neglect, weak control systems, and insufficient capital.