Chapter 6: Entrepreneurship & Starting a small Business

Entrepreneurship

Accepting the risk of starting and running a business.

Reasons why entrepreneurs are willing to take risks

Opportunity, profit, independence, challenge

contrary to popular belief, entrepreneurs are not excitement junkies they :

they take moderate calculated risk. They value achievement more than power

list of entrepreneurial attributes to look for in yourself include:

1.) self directed

2.) self nurturing

3.) action oriented

4.) highly energetic

5.) Tolerant of Uncertainty

what does it mean to be self directed

being self disciplined and being comfortable being your own boss. You alone will be responsible for failure or success

what does it mean to be self nurturing

believing in your own idea, even when no one else does

what is an entrepreneurial team?

a group of experiences ppl. from different areas of business who join to form a managerial team with skills to develop, make, and market another product.

what is an intrapreneur?

creative ppl. who work with entrepreneurs within corporations

entrepreneurship in large corporations is often reflected in the efforts and achievement of who

intrapreneur

The idea for intrapreneurs to use a company's existing resources such as __________, to to launch new products and generate products.

human, financial, and physical

What is a micropreneur?

Micropreneurs are people willing to accept the risk of starting and managing the type of business that remains:

-small

-work flexibility

-balanced lifestyle.

what are the reasons for growth of home based owners

-technology

-corporate downsizing/ job loss

- change in social attitudes towards home based owners

- better tax laws for home office expenses

What are the challenges of being a home based business?

-getting new customers

-managing time

-keeping work and family separate

- abiding city ordinances

- managing risk

-homeowners insurance

home based owners should focus on taking on opportunities

what was the immingration act of 1990

intended to encourage more entrprenrs if they investeed 1.8 million dollars to a business in low income area

what is an enterprise zone?

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

What are incubators?

centers that offer new businesses low-cost offices with basic business services such as accounting

what is Self Employment assistance program? (SEA)

program that allows participants to collect sels-employment payments instead of regular unemployement checks while they build their business. Get training and counsleing

what is a small business defined as by the SBA

independently owned and operated, is not dominant in its field of operation and meet certain standards of size in terms of employees or annual reciepts ( such as 2.5 million a yr.)

if you want to buy a small business how do you determine a fair price for a business?

1.) what business owns

2.) what it earns

3.)what makes it unique

And an accountant

what is the best way to learns about small Business operations?

-learn from others

-get some experience

-take over a successful firm

what is the major cause of small business failure

POOR MANAGEMENT

To help you succeed as a business owner you must explore the follwing sections

1.) Planning your business

2.) Financing your business

3.) Knowing your customers ( marketing)

4.) Managing your employees ( HR)

5.) keeping records (accounting)

Looking for help

what is a business plan

A written description of the business idea and how it will be carried out, including all major business activities.

what does a business plan force owners to do?

be specific about the products and services they intend to offer.

-analyze competition

-start up cost and essential to banker and lenders

Outline comprehensive business plan

cover letter,

1.)executive summary,

2.) company background,

3.)management team, financial plan,

4.)capital required,

5.)marketing plan,

6.) location analysis,

7.) manufacturing plan,

8.) appendix

Classes on small business and entrepreneurship offered at a local community college offer prospective business owners the chance to Blank______.

Multiple choice question.

build a support network of other aspiring entrepreneurs