Intro and entrepreneurship Flashcards
What makes a business small?
-Independently owned and operated
-Not dominant in it’s field of operation
The art and science of motivating people towards the achievement of a goal
-Energizing
-Channeling
-Sustaining people’s behaviors
Management
What is an entrepreneur?
Someone who:
-Organizes
-Manages
-Assumes the risk of the business
-Does not have to be an owner
A new business venture started from the beginning
Startups
Type of entrepreneur that results from some severe hardship
Reluctant entrepreneur
Type of entrepreneur that results from escaping an undesirable job
Corporate refugee
Type of entrepreneur that results from innovative solutions to social needs, problems, and opportunities
Social entrepreneur
A unique type of small business that grants substantial profits to it’s owner(s)
Attractive small firm
A unique type of small business that permits the owner(s) to follow a desired pattern of living
Lifestyle business
A unique type of small business that is a small firm with great prospects for growth
High potential venture (gazelle)
A unique type of small business that provides minimal profit to it’s owner(s) and is a small firm
Micro business
A unique type of small business that provides to a specific group of customers
-Identified need
-Narrow or speciality product/ service
Niche market
What does the government look at when classifying a small business
-The number of employees
-Average revenue
What are the two factors that make a business small?
1. Exact pr specified amount or measured
2. Distinct characteristic, pr opportunity, or attribute
- Quantitative
- Qualitative
Federal government agency that deals with the financing, operation, and management of small businesses
-Est. 1953
The SBA - Small Business Association
What is the SBA rule of thumb top make a business small?
The business has to have less than 500 employees
Maximum size a business can be while still being eligible for federal government programs
-Separated by industry
SBA size standards table
What breaks up the industry standards on the SBA size standard table?
The North American Industry Classification System (NAICS)
-Dollar sales volume
-Number of employees
What is the dollar threshold on the NAICS that determines if a funeral home is large or big?
$12.5 million
What are the qualitative characteristics that make a business small?
-Not a major impact on the industry
-Active management by owner(s)
-Highly personalized
-Geographically localized
-Dependent on internal capital
-Growth potential is limited
What are the four things a small business manager is going to do?
- Planning
- Leading and directing
- Organizing
- Controlling and evaluating
Personality type of manager who is the day to day doer
-Technical skills
-Independent
-Reluctant to delegate
Technician
Personality type of manager who is the day to day planner
-Order and planning
-Delegates
-Puts fires out and starts new ones
Manager
Personality type of manager who is the long term planner
-“How should the business work?”
-Business = system
-Strategizes
Entrepreneur
