Entrepreneurship
the process of creating and managing a business to achieve desired objectives
Small business
any independently owned and operated business that is not dominant in its competitive area and employs fewer than 500 people
Social entrepreneurs
are individuals who use entrepreneurship to address social problems
Small Business Administration
(SBA)
an independent agency of the federal government that offers managerial and financial assistance to small businesses
Retailing
Retailers acquire goods from producers or wholesalers and sell them to consumers
Wholesalers
provide both goods and services to producers and retailers
Service
include intangible products that involve a performance, inauguration, or any effort to provide something of value that cannot be physically possessed
High Technology
is a broad term used to describe businesses that depend heavily on advanced scientific and engineering knowledge
Undercapitalization
the lack of funds to operate a business normally.
Micropreneurs
operate small-scale businesses with no more than 5 employees. It is estimated that 95% of small businesses are microbusinesses.
Business plan
a precise statement of the rationale for the business and a step-by- step explanation of how it will achieve its goals
Equity Financing
occurs when the owner uses real personal assets - such as a computer, desks and other furniture - rather than borrowing funds from outside sources to get started in a new business
Debt Financing
From banks and financial institutions
Collateral
a financial interest in the property or fixtures of the business, to guarantee payment of the debt
Mortgage
small-business owner may have to provide personal property as collateral, such as his or her home, in which case the loan
Line of credit
an agreement by which a financial institution promises to lend a business a predetermined sum on demand
Trade credit
suppliers allow the business to take possession of the needed goods and services and pay for them at a later date or in installments
Bartering
trading their own products for the goods and services offered by other businesses
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
Franchising
allows a franchisee the opportunity to set up a small business relatively quickly, and because of its association with an established brand, a franchise outlet often reaches the break-even point faster than an independent business would
Networking
building relationships and sharing information with colleagues—is vital for any businessperson, whether you work for a huge corporation or run your own small business
Incubators
or organizations created to accelerate the development and success of startup organizations, often provide network opportunities and potential capital to jumpstart a business
