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Terms in this set (13)
is one in which several large firms compete according to relatively well-defined criteria.
is simply a segment of a market that is not currently being exploited
is any advantage that comes to a firm because it exploits an opportunity before any other firm does.
the entrepreneur summarizes the business strategy and how that strategy is to be implemented.
To find openings, entrepreneurs must study markets and answer the following questions:
(1) Who are my customers? (2) Where are they? (3) At what price will they buy my product? (4) In what quantities will they buy? (5) Who are my competitors? And (6) how will my product differ from those of my competitors?
study by the National Federation of Independent Business (NFIB)
an owner's personal resources, not loans, are the most important source of money.
are also becoming a popular method for financing business growth.
Although banks, independent investors, and government loans all provide much smaller portions of start-up funds than the personal resources of owners, they are important in many cases.
Venture capital companies
are groups of small investors seeking to make profits on companies with rapid growth potential. Most of these firms do not lend money: They invest it, supplying capital in return for stock
experts who charge fees to help managers solve problems. They often specialize in one area, such as international business, small business, or manufacturing.
are often an accessible doorway to entrepreneurship. A franchise is an arrangement that permits the franchisee (buyer) to sell the product of the franchiser (seller, or parent company). Franchisees can thus benefit from the selling corporation's experience and expertise. They can also consult the franchiser for managerial and financial help
Reasons for failure:
managerial incompetence, neglect, weak control systems, insufficient capital
Reasons for Success:
hard work, drive, and dedication, careful analysis of market conditions, managerial competence, luck also plays a role in the success of some firms.
The process of planning, organizing, operating, and assuming the risk of a business venture
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