Chapter 5

Question 0

How much of the private sector employees are employed by small business?

Answer 0

About half

Question 1

Small business provides what percent of all employer firms?

Answer 1

99.7%

Question 2

What percent of the U.S. Private payroll does small business pay?

Answer 2

43%

Question 3

What percent of new jobs have small businesses created over the past 18 years?

Answer 3

64%

Question 4

What percent of tech workers do small businesses hire?

Answer 4

43%

Question 5

What percent of small businesses are home based? Franchise based?

Answer 5

Home: 52%
Franchise: 2%

Question 6

How much more patents per employee do small businesses make than large patenting firms?

Answer 6

16.5 times more

Question 7

What is the primary reason for failure in a small business?

Answer 7

Lack of business know how

Question 8

What percent of small business does distribution make up?

Answer 8

33%

Question 9

What are 3 attractive characteristics of owning a small business?

Answer 9

1. Low capital investment
2. Some special skill requirements
3. High growth and profit potential

Question 10

What percent of small business is made up of service?

Answer 10

48%

Question 11

What percent of small business is made up of production?

Answer 11

19%

Question 12

What is entrepreneurial spirit?

Answer 12

The desire to create a new business

Question 13

How much of small businesses are owned by women?

Answer 13

7.8 million

Question 14

How many jobs are provided by women in small business?

Answer 14

7.6 million

Question 15

How much money do businesses owned by women generate in sales?

Answer 15

$1.2 trillion

Question 16

What percent of small businesses owned by woman have been in business for 12 or more years?

Answer 16

More than 40%

Question 17

What percent of small businesses owned by women are home based?

Answer 17

66%

Question 18

How old is the average entrepreneur?

Answer 18

25-44

Question 19

3 reasons why entrepreneurs and businesses fail

Answer 19

1. Lack of capital and cash flow problems
2. Lack of management skills
3. Over expansion

Question 20

Who do small firms usually hire?

Answer 20

Younger and older workers, women, and part time workers

Question 21

How do small firms help to fill the needs of society and other businesses?

Answer 21

• Small firms can meet the special needs of smaller groups of customers
• small firms can act as specialized suppliers to the big companies

Question 22

What are the 3 purposes of a business plan?

Answer 22

1. Communicate with potential investors
2. Manage progress
3. Plan phases of the business

Question 23

What is the Small Business Administration?

Answer 23

Government agency that assists, counsels, and protects the interests of small businesses in the U.S.

Question 24

How does the SBA help small businesses financially?

Answer 24

1. They will repay 90% of loans that you can’t pay
2. They give loans as large as $2 million
3. Average loans are $300,000 over 8 years

Question 25

What is a small business investment company?

Answer 25

Privately owned firm, provides venture capital to small enterprises that meet their investment standards

Question 26

What is venture capital?

Answer 26

Money invested in small firms that ha R the potential to become very successful

Question 27

What is a franchise?

Answer 27

License to operate an individually owned business as thought it were a part of a chain of outlets or stores.