Chapter 6-Entrepreneurship & Small Business Management

Identify Type of Financing...The land that the business is built on

Process of starting, organizing, managing, and assuming the responsibilities for a business

Most new business owners obtain start up money to finance their business from banks

Written description of the business idea

Money needed to pay for current operating activities of a business

Small businesses employ only 10% of US workers

By the end of their fifth year (when starting a new small business), roughly 50 percent of small businesses fail.

About 20 percent of small businesses fail within their first year

Successful Entrepreneurs have many personal characteristics in common

Government agency that helps small business owners develop business plans and obtain finances

Money provided by large investors to finance new businesses

Money needed for important resources of a business (land, buildlings, equipment)

A business plan includes description of the strengths and weaknesses of competitors

Start up financing is money needed to pay current operating costs of the business

Identify Type of Financing...Money used to open the business

Amount of money needed to open a business

Identify Type of Financing...Money to pay for current operating cost of the business

Over 99 percent of America's 28.7 million firms are small businesses

Identify Type of Financing...Purchase of the equipment to open a business

A brand new invention

Identify Type of Financing...The license to operate a business

An entrepreneur is someone who takes a risk by starting their own business

One of the main reasons that businesses started by entrepreneurs fail is inadequate capital

The process of starting, organizing, and managing a business

Identify Type of Financing...Financing that is obtained for less than a year

Rules about how businesses and their employees ought to behave

An independent business with 200 employees is considered a small business

Identify Type of Financing...Large amounts of money paid over many years

Independent business with fewer than 500 employees