Chapter 1: Starting Your Own Small Business Flashcards
Entrepreneurial Venture
Different from SBO; When the Principle Objectives of the of owner is Profitability & Growth
Small Business
- Independently owned & operated; Not dominate in its’ field; relaxed & less aggressive
- Objectives: Freedom and Financial Independence (to a degree)
Micro-Business
- Only has 1-4 employees; ran from owner’s home; #workFromHome
- is 60% of 5.6 milly employees & brings in $100 billy/yearly spending
Small Business Owner
establishes business primarily to further personal goals, including making a profit
Entrepreneur
has goals of achievement, profit, and growth that’s achieved through Innovation and Strategic Management
Reinvention
Fundamental redesign of a Business, often resulting in reduction in Size and Markets
Reengineering
Redesign of Operations - starting from scratch
Downsizing (rightsizing)
a result of reengineering; reducing the number of employees to increase efficiency
Objectives
the Goals towards which the Activities of the business are Directed
Profit
Revenue received by a business in Excess of the Expenses Paid
Profit Motive
Expecting to make a Profit as the Reward for taking the Risk of Starting & Running the business
Social Objectives
Goals regarding assisting Groups in the community and Protecting the Environment;
Protects interest of parties and make profit
High-Knowledge Industries
40% or more of Human Resources are Professionals, Technicians or other “knowledge worker.”
Discontinuance
a Voluntary decision to Terminate a buisness
Failure
inability to succeed in Running a business
Formal Failure
Failures ending up in court with loss to creditors
Personal (Informal) Failure
Owner, who cannot succeed voluntarily terminates business
Business Incubators
Nurture young firms and help them to survive and grow during the startup period when they are most vulnerable
