Small Business & Entrepreneurship Study Notes

Vocabulary flashcards covering core concepts, types of small businesses and entrepreneurs, and the entrepreneurial process.

Small Business (U.S. SBA Definition)

A business generally considered by the U.S. Small Business Administration to have fewer than 500 employees.

Microbusinesses

The largest sector by number of U.S. businesses; often lifestyle-oriented small service firms such as pool cleaning, dry cleaning, and appliance repair.

Attractive Small Firms

Small businesses that can provide substantial financial rewards and rewarding careers, with profits that may grow into millions or tens of millions of dollars.

High-Potential Ventures (Gazelles)

Businesses with phenomenal growth prospects that often involve cutting-edge technology and may change how people live.

Entrepreneurship

The relentless pursuit of an opportunity without regard to owning all the resources needed to capture that opportunity.

Bootstrapping

Creatively obtaining needed resources, such as bartering, generating income elsewhere, or using personal credit.

Four Stages of the Entrepreneurial Process

The four-step sequence consisting of: Identify Opportunity -> Acquire Critical Resources -> Execute the Plan -> Harvest the Firm's Value.

Second-Stage Entrepreneurs

People who take over an established business, such as a second-generation family member or someone who has already been managing the company.

Franchisees

Business owners who operate under a contractual arrangement with a franchisor, receiving guidance and standardized systems but having less independence.

Social Entrepreneurs

Entrepreneurs who make a social purpose an integral part of the company and explicitly address a social challenge or human need.

Intrapreneurs

Employees inside an existing, usually larger, corporation who act entrepreneurially by developing new ideas, products, services, or processes that create value for the company.

Entrepreneurial Team

Two or more individuals who combine their efforts to function in the capacity of entrepreneurs.