Chapter 6 Flashcards
Small business
A company that is independently owned and operated, is not dominant in its field, and employs fewer than 500 people
Entrepreneurial spirit
The positive, forward thinking desire to create profitable, sustainable business enterprises
Business plan
A document that summarizes a proposed business venture, its goals and plan for achieving those goals
Pivoting
Adjusting a firm’s business model when a better opportunity presents itself
Advisory board
A team of people with subject-area expertise or vital contacts who help a business owner review plans and decisions
Business incubators
Facilities that help early-stage entrepreneurial teams develop ideas into workable business models and establish company frameworks for commercializing products
Business accelerators
Organizations that work with existing companies with the primary goal of making them more attractive to investors
Seed money
The first infusion of capital used to get a business started
Microlenders
Organizations, often not-for-profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans
Venture capitalists (VCs)
Investors who provide money to finance new businesses in exchange for a portion of ownership, with the objective of selling their shares at a significant gain
Angel investors
Private individuals who invest money in start-ups, usually earlier in a business’s life and in smaller amounts than VC’s are willing to invest or banks are willing to lend
Initial public offering (IPO)
A corporation’s first offering of shares to the public
Crowdfunding
Soliciting project funds, business investment, or business loans from members of the public
Franchise
A business arrangement in which one company (the franchisee) obtains the rights to sell the products and use various elements of a business system of another company (the franchiser)
Franchisor
A company that licenses elements of its business system to other companies (franchisees)
