Chapter 6 (Entrepreneurship) Flashcards
Entrepreneurship
Accepting the risk of starting and
running a business
Four Major Reasons Why People Take on the Entrepreneurial Challenge
- Opportunity
- Profit
- Independence
- Challenge
Entrepreneurial Teams
A group of experienced people
from different areas of business who join to form a
managerial team with the skills to develop, make, and
market a new product
Intrapreneurs
*Creative people who work as entrepreneurs
within corporations
*Intrapreneurs use a company’s existing resources to launch
new products for the company
Micropreneurs
Entrepreneurs willing to accept the risk of
starting and managing a business that remains small, lets
them do the work they want to do, and offers them a
balanced lifestyle
Enterprise zones
Specific geographic areas to which
governments try to attract private business investment by
offering lower taxes and other government support
Enterprise zones
Specific geographic areas to which
governments try to attract private business investment by
offering lower taxes and other government support
Incubators
Centers that offer new businesses low-cost offices
with basic business services
Small business
A business that is independently
owned and operated, is not dominant in its field of
operation, and meets certain standards of size (set by the
Small Business Administration) in terms of employees or
annual receipts
Business plan
A detailed written statement that describes
the nature of the business, the target market, the advantages
the business will have in relation to competition, and the
resources and qualifications of the owner(s)
Venture capitalists
Individuals or companies that invest in
new businesses in exchange for partial ownership of those
businesses
Small Business Administration (SBA)
A U.S.
government agency that advises and assists small
businesses by providing management training and financial
advice and loans
Small Business Investment Company (SBIC)
A program
through which private investment companies licensed by the
SBA lend money to small businesses
Market
People with unsatisfied wants and needs who
have both resources and willingness to buy
Service Corps of Retired Executives (SCORE)
More
than 10,000 volunteers from industry, trade associations,
and education who counsel small business at no cost
