Chapter 3: Entrepreneurship, New Ventures and Business Ownership. Flashcards
Small Business
One that is independent (not part of a lager business) and that has relatively little influence in its market.
Small Business Administration
Government agency charged with assisting small businesses.
Entrepreneurship
The process of seeking business opportunities under conditions of risk.
Established Market
One in which many firms compete according to relatively well defined criteria.
Niche
A segment of a market that not currently being exploited.
First Mover Advantage
Is any advantage that comes to a firm because it exploits an opportunity before any other firm does.
Business Plan
Document in which the entrepreneur describes her or his business strategy for the new venture and demonstrates how it will be implemented.
Franchising
Arrangement in which a buyer (franchisee) purchases the rights to sell the good or service of the seller (Franchiser)
Venture Capital Company
Group of small investors who invest money in companies with rapid growth potential.
Small Business investment company
Government regulated investment company that borrows money form the SBA to invest in or lend to a small business.
Emergence of E-Commerce
The internet provides fundamentally new ways of doing business.
Cross overs from big businesses
More businesses are being stated by people who have opted to leave big corporations and their experience to work for themselves.
Opportunities for minorities and women.
More small businesses are also being start by minorities and women.
Global opportunities
Many entrepreneurs are also finding new opportunities in foreign markets.
Better survival rates
Today 44% of the new start ups can expect to survive for at least 4 years.
Sole Proprietorship
Business owned and usually operated by one person who Is responsible for all of its debts.
General Partnership
Business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts.
Limited Partnership
Allows for limited partners who invest money but are liable for debts only to the extent of their investments.
Master limited Partnership
Master limited partner has majority ownership and runs the business; Minority partners have no management voice.
Corporation
Business that is legally considered an entity separated from its owners and is liable for its own debts; owners liability extends to the limits of their investments.
