Intro to Business Chapter 5

Small business

One that is independently owned and operated for profit and is not dominant in its field.

Capital

The entrepreneur doesn't raise enough money to start and/or sustain the business in its early stages. It may take years before a business begins to show a profit.

Management

Many entrepreneurs lack these skills. Money time personnel, and inventory all need to be effectively managed.

Planning

Many entrepreneurs fail to adequately plan for a firm's growth and expansion.

Business Plan

A carefully constructed guide for the person starting the business.

Small Business Administration (SBA)

A governmental agency that assists, counsels, and protects the interests of small businesses in the United States.

Service Corps of Retired Executives (SCORE)

A group of business people who volunteer their services to small businesses through SBA.

Small Business Institutes (SBI)

Groups of senior and graduate students in business administration who provide management counseling to small businesses

Small-Business Development Centers (SBDCs)

University based groups that provide individual counseling and practical training to owners of small businesses.

SBA Financial Assistance

While the SBA does provide a limited amount of direct financial assistance (loans, grants, etc.) to small businesses, its primary financial function is to guarantee loans to eligible businesses.

Small-Business Investment Companies

Privately owned firms that provide venture capital to small enterprises that meet their investment standards.

Venture Capital

Money that is invested in small (and sometimes struggling) firms that have potential to become very successful.

Franchise

A license to operate an individually owned business as though it were part of a chain of outlets or stores.

Franchisor

An individual or organization granting a franchise.

Franchisee

A person or organization purchasing a franchise.