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Business in Action Ch 6 BUSN100 Entrepreneurship and Small-Business Ownership

Terms in this set (26)

Behavioral patterns and activities involved in carrying out the functions of management; includes:
-interpersonal
-informational
-decisional roles
Managerial Roles
-They provide jobs
-They introduce new products
-They supply the needs of larger organizations
-They inject a considerable amount of money into the economy
-They take risks that larger companies sometimes avoid
-They provied specialized goods and services
Economic Roles of Small Businesses
The practice of engaging outside firms to handle either individual projects or entire business functions ( page 194) also creates numerous opportunities for small businesses and entrepreneurs. Some companies subcontract special projects and secondary business functions to experts outside the organization, while others turn to outsourcing as a way to permanently eliminate entire departments, and some laid- off employees even become entrepreneurs and sell services to their former employers.
Outsourcing
The positive, forward- thinking desire to create profitable, sustainable business enterprises
Entrepreneurial Spirit
-Managerial incompetence
-Lack of relevant experience
-Inadequate financing
-Poor cash management
-Lack of strategic planning
-Ineffective marketing
-Uncontrolled growth
-Poor location
-Poor inventory control
-Inability to make the transition fro corporate employee to entrepeneur
10 major reasons why new businesses fail
A team of people with subject- area expertise or vital contacts who help a business owner review plans and decisions
Advisory Board
Facilities that house small businesses and provide support services during the company's early growth phases
Business Incubators
The first infusion of capital used to get a business started
Seed Money
Organizations, often not- for- profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans
Microlenders
Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a profit
Venture Capitalists ( VCs)
Private individuals who invest money in start- ups, usually earlier in a business's life and in smaller amounts than VCs are willing to invest or banks are willing to lend
Angel Investors
A corporation's first offering of shares to the public
Initial Public Offering
Business arrangement in which one company ( the franchisee) obtains the rights to sell the products and use various elements of a business system of another company ( the franchisor)
Franchise
Name the three basic types of franchises
-A product franchise gives you the right to sell trade-marked goods, which are purchased from the franchisor and resold. Car dealers and gasoline stations fall into this category.

-A manufacturing franchise, such as a soft- drink bottling plant, gives you the right to produce and distribute the manufacturer's prod-ucts, using supplies purchased from the franchisor.

-A business- format franchise gives you the right to open a business using a franchisor's name and format for doing business. This format includes many well- known chains, including Taco Bell, Pizza Hut, UPS Stores, and Curves fitness centers.
Doccument that summarizes a proposed business venture, goals, and plans for achieving those goals
Business Plan
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