Small businesses often have advantages in international markets. One advantage is
individualized customer service as opposed to impersonal corporate bureaucracies.
nile cultural differences and bureaucratic paperwork for foreign governments nake the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now
find customers via the Internet without the expense of travel.
Why do incubator facilities continue to remain very popular with start-up businesses?
By providing essential and low-cost services to entrepreneurs, they have a very strong success rate
A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over the competition, and the resources and qualifications of the owners) is called a
business plan.
In what way is small-business management and large-business management similar in practice?
Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
What is part of the definition of a small business?
It is considered small relative to other businesses in its industry.
Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
the executive summary
For a market to exist, there must be potential buyers
who have a willingness and the resources to buy.
Entrepreneurs emphasize the importance of believing in your own ideas even when no one else does. Characteristically, they also know that success or failure is
“on them.” These attributes are described as
self-directed and self-nurturing.
What factor has leveled the playing field by making it much more affordable to start a home-based business?
broadband Internet connections and other technologies
What are the most common sources of funding for entrepreneurs?
personal savings and individual investors such as family
Doreen works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas and development time is provided on the job for those ideas that float to the top. As Doreen spends part of each week generating ideas and applying her creative talents, she can be called a(n)
intrapreneur.
Young entrepreneur Sam Richards started recycled plastic, upscale drinkware company Bellaforte after dropping a tray of drinks he was carrying to his parents at their backyard pool. After smashing everything, he searched for crystal-like plastic replacements but couldn’t find anything nice and decided to start his own business. Which statement accurately describes Richards’ key to success?
His idea solved a problem.
What is the major reason small businesses in the United States should consider going global?
Most of the world’s market lies outside the United States.
Camila wants to start a small business importing some products from her native
Guatemala. Before she starts, some good advice to Camila would be
talk to others who have been or are in the import business.
Dave, a writer, has started a small at-home business creating social media posts for local restaurants. With just ten clients, he can work from home while being a caregiver for his aging dad. Dave is best described as a(n)
micropreneur.
What is SCORE?
an organization affiliated with the Small Business Administration where retired experts volunteer to provide free advice to small businesses that are just getting started
When Ajani started his business, he worried about taxes and knew he had to keep costs to a minimum. He planned to distribute protective footwear for construction and factory workers, but realized most of his business would not be walk-in customers but rather large orders from companies. Ajani chose to locate in a government-subsidized area called a(n)
breaks and other government support.
enterprise zone
Organizations known as
communities. These organizations have a significant role in the economic recovery and some start-up businesses have successfully found sources of capital by going through one of these organizations.
CDFIs (Community Development Financial Institutions)
The primary concerns when first starting your business are
financing and planning.
One drawback of using venture capital as a means of financing a business is that venture capital firms
may ask for a high stake in your business.
Which statement about small business is false?
Most Americans will never work for a small business.
Lauren wants to start a small private chef business out of her home. Her target audience is working couples who do not have the time to cook for themselves.
While she is an accomplished cook, she has never earned money by preparing food for others. Which statement seems to be good advice for Lauren?
Become an apprentice for a private chef, or work for a similar business for a few years.
Which statement reflects one advantage small businesses have over large business in international trade?
Overseas buyers like dealing with individuals rather than large bureaucracies.
