Chapter 5 Flashcards
Classic Entrepreneur
risk-takers who start their own business based on innovative ideas
Micropreneur
start small and stay small
Multipreneur
entrepreneurs who start a series of companies
Intrapreneurs
entrepreneurs who don’t own their own business but apply their creativity, vision, and risk-taking within a large corporation
The Kauffman Index of Start-Up Activity
early indicator of new entrepreneurship in the U.S.
Ewing Marion Kauffman Foundation
best source to track US entrepreneurial growth activity
Annual Survey of Entrepreneurs (ASE)
public-private partnership between the Ewing Marion Kauffman Foundation, US Census Bureau, & the Minority Business Development Agency
Current Population Survey(CPS)
sample sizes of more than 900,000 observations
Business Dynamics Statistics (BDS)
covers approximately 5 million businesses
Established Small Business
have been in business for more than 5 years with at least 1, but less than 50 employees
Business Plan
one of the most important steps in starting a business; determines failure or success
Debt
borrowed funds that must be repaid with interest over a stated time period
Equity
funds raised through the sale of stocks in the business
Bootstrapping
funding the operation with your own resources
Angel Investors
individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own money often referred to as “seed capital”
Venture Capital
financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies
Non-compete Clause
means that the owner of the company being sold may not be allowed to compete in the same industry as the acquired business for a certain amount of time
Certified Public Accountant (CPA)
helps with financial record keeping, decision-making, and tax planning
Attorney
provides legal advice & draws up legal documents & contracts
Consultants
marketing, employee benefits, & insurance; as-needed basis
Outside Directors
get advice from those who have business experience
Catch-22
to grow you ned to hire more people, but making the shift form solo worker to boss can be stressful
Export Trading Companies (ETCs)
buy goods at a discount from small businesses & resell them abroad
Export Management Companies (EMCs)
act on a company’s behalf; handle all aspects of exporting, including finding customers, billing, shipping, & helping the company comply with foreign regulations
New Markets Venture Capital Program
promotes economic development & job opportunities in low-income geographical areas
SBICs
Small Business Investment Companies
SCORE
Service Corps of Retired Executives
ACE
Active Corps of Executives
