Chapter 6 - Entrepreneurship and Small Business Management

Small Business Administration

A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.

venture capital

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.

short-term financing

The money needed to pay for the current operating activities of a business.

start-up financing

The amount of money needed to open the business.

innovation

An invention or creation that is brand new.

entrepreneur

Someone who takes a risk in starting a business to earn a profit.

business plan

A written description of the business idea and how it will be carried out, including all major business activities.

long-term financing

Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years.

small business

An independent business with fewer than 500 employees.

improvement

A designed change that increases the usefulness of a product, service, or process.

entrepreneurship

The process of starting, organizing, managing, and assuming the responsibility for a business.

persistent

A personal characteristic of an entrepreneur where he/she goes on resolutely or stubbornly in spite of opposition.

inquisitive

A personal characteristic of an entrepreneur where he/she constantly asks questions and searches for answers.

inventory

Products or raw materials that are on hand.

venture capitalist

Large investors who provide money to finance new products and new businesses that have a good chance to be very profitable.

Service Corps of Retired Executives

A group of retired local businesspeople who volunteer their services to counsel and mentor new business owners.

customer analysis

The part of a business plan that discusses sales forecasts and the location and number of potential patrons.

description of competition

The part of the business plan that discusses the industry characteristics and the condition of the economy.

marketing plan

The part of the business plan that discusses the products, prices, promotion, and place of the goods and services that will be sold.

financial plan

The part of the business plan that discusses the potential profits and finances of the new business.