mie 201 ch.05

entrepreneurship

the process of creating and managing a business to achieve desired objectives

microentrepreneurs

entrepreneurs who develop business for five or fewer employees

social entrepreneurs

individuals who use entrepreneurship to address social problems

small business

any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people

small business administration (SBA)

an independent agency of the federal government that offers managerial and financial assistance to small businesses

sharing economy

an economic model involved in the sharing of underutilized resources

gig economy

an economic model involving independent contractors selling their services on-demand

undercapitalization

the lack of funds to operate a business normally

business plan

a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals

equity financing

a business owner uses real, personal assets rather than borrowing funds from outside sources to get started in a new business

franchise

a license to sell another’s products or to use another’s name in business, or both

franchiser

the company that sells a franchise

franchisee

the purchaser of a franchise

intrapreneurs

individuals in large firms who take responsibility for the development of innovations within the organization