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| Accepting the risk of starting and running a business. |
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| A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product |
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•Creative people who work as entrepreneurs within corporations.
•Intrapreneurs use a company’s existing resources to launch new products for the company. |
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Definition
•Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers them a balanced lifestyle.
•About half of U.S. micropreneurs are home-based business owners—writers, consultants, video producers, architects, bookkeepers, etc.
•Nearly 60 percent of home-based micropreneurs are men. |
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Definition
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support. |
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| Centers that offer new businesses low-cost offices with basic business services. |
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Definition
•A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.
•Businesses are “small” in relation to other businesses in their industries. |
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Term
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Definition
•Planning
•Financing
•Knowing customers
•Managing employees
•Keeping records
•Carefully watching cash flow (cash flow is money coming into a business versus money going out of the business) |
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Definition
•A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).
•A business plan forces potential owners to be specific about what they will offer.
•A business plan is mandatory for talking with bankers or investors. |
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Definition
Individuals or companies that invest in new businesses in exchange for partial ownership those businesses. |
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Term
| Sources of capital for small or medium-size business |
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Definition
•1. Personal savings
•2. Family
•3. Business associates
•4. Banks and finance institutions
•5. Government agencies
•6. Angel Investors--usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them. In return they often take partial ownership equity. |
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Term
| Small business administration SBA |
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Definition
•A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.
•SBA started a microloan program in 1991 that provides very small loans to small-business owners.
•The program judges worthiness based on the borrowers’ integrity and soundness of their business ideas. |
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Term
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Definition
| usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them. In return they often take partial ownership equity. |
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