Chapter 5 Flashcards
How much of the private sector employees are employed by small business?
About half
Small business provides what percent of all employer firms?
99.7%
What percent of the U.S. Private payroll does small business pay?
43%
What percent of new jobs have small businesses created over the past 18 years?
64%
What percent of tech workers do small businesses hire?
43%
What percent of small businesses are home based? Franchise based?
Home: 52%
Franchise: 2%
How much more patents per employee do small businesses make than large patenting firms?
16.5 times more
What is the primary reason for failure in a small business?
Lack of business know how
What percent of small business does distribution make up?
33%
What are 3 attractive characteristics of owning a small business?
- Low capital investment
- Some special skill requirements
- High growth and profit potential
What percent of small business is made up of service?
48%
What percent of small business is made up of production?
19%
What is entrepreneurial spirit?
The desire to create a new business
How much of small businesses are owned by women?
7.8 million
How many jobs are provided by women in small business?
7.6 million
How much money do businesses owned by women generate in sales?
$1.2 trillion
What percent of small businesses owned by woman have been in business for 12 or more years?
More than 40%
What percent of small businesses owned by women are home based?
66%
How old is the average entrepreneur?
25-44
3 reasons why entrepreneurs and businesses fail
- Lack of capital and cash flow problems
- Lack of management skills
- Over expansion
Who do small firms usually hire?
Younger and older workers, women, and part time workers
How do small firms help to fill the needs of society and other businesses?
- Small firms can meet the special needs of smaller groups of customers
- small firms can act as specialized suppliers to the big companies
What are the 3 purposes of a business plan?
- Communicate with potential investors
- Manage progress
- Plan phases of the business
What is the Small Business Administration?
Government agency that assists, counsels, and protects the interests of small businesses in the U.S.
How does the SBA help small businesses financially?
- They will repay 90% of loans that you can’t pay
- They give loans as large as $2 million
- Average loans are $300,000 over 8 years
What is a small business investment company?
Privately owned firm, provides venture capital to small enterprises that meet their investment standards
What is venture capital?
Money invested in small firms that ha R the potential to become very successful
What is a franchise?
License to operate an individually owned business as thought it were a part of a chain of outlets or stores.
