Small Business Management Overview

Flashcards covering the key concepts from the small business management lecture.

Small Business

An independently owned, operated, and financed business, typically characterized by fewer than 100 employees.

Competitive Advantage

The advantage a business has over its competitors, allowing it to generate greater sales or margins.

Flexibility

The ability of small businesses to adapt quickly to changes in the marketplace compared to larger corporations.

Innovation

The process of introducing new ideas, products, or services, often originating from small businesses.

Intellectual Capital

The valuable skills and knowledge possessed by employees which contribute to the success of a business.

Business Failure

When a business closes due to reasons such as bankruptcy, foreclosure, or financial loss to creditors.

Under Capitalization

A situation in which a business does not have enough capital to sustain operations or to pursue growth opportunities.

Market Size and Definition

The total potential customers for a product or service, as well as understanding demographics and consumer preferences.

Common Causes of Small Business Failure

Factors such as lack of planning, poor cash flow, and unrealistic expectations that lead to the closure of businesses.

Diversity in the Marketplace

The inclusion of a wide range of different demographics and perspectives within the marketplace and workplace.