Small Business: A Profile
The SBA (Small Business Administration) periodically revises and simplifies its small-business size regulations
- profit is only a small percentage of total sales (a firm may earn $40,000 on yearly sales of $1 million = small compared to medium-sized or l
Small Business
one that is independently owned and operated for profit and is not dominant in its field
The People In Small Businesses: The Entrepreneurs
- U.S. population is quite entrepreneurial when compared with those of other countries
- more than 70% of Americans would prefer being an entrepreneur to working for someone else
- small businesses typically are managed by the people who started and own t
The Importance of Small Businesses In Our Economy
- The President of the US has proclaimed National Small Business Week to recognize the contributions of small businesses to the economic well-being of America
PROVIDING TECHNICAL INNOVATION
- invention and innovation are part of the foundations of our eco
The Pros and Cons of Smallness
ADVANTAGES OF SMALL BUSINESS
1) Personal Relationships with Customers and Employees
- small-business owners often become involved in the social, cultural, and political life of the community
- relationships between owner-managers and employees tend to be
Business Plan
a carefully constructed guide for the person starting a business
The Small Business Administration
Small Business Administration (SBA) = a governmental agency that assists, counsels, and protects the interests of small business in the United States
- provides both financial assistance and management counseling
- the SBA provided training, technical ass
Small Business Administration (SBA)
a governmental agency that assists, counsels, and protects the interests of small business in the United States
Service Corps of Retired Executives (SCORE)
a group of businesspeople who volunteer their services to small businesses through the SBA
Small-Business Institutes (SBIs)
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
Venture Capital
money that is invested in small (and sometimes struggling) firms that have the potential to become very successful
Small-Business Investment Companies (SBICs)
privately owned firms that provide venture capital to small enterprises that meet their investment standards
Franchising (Topic)
*Franchise = a license to operate an individually owned business as though it were part of a chain of outlets or stores
- an attractive means of starting and operating a small business
WHAT IS FRANCHISING?
*Franchising = the actual granting of a franchise
Franchise
a license to operate an individually owned business as though it were part of a chain of outlets or stores
Franchising
the actual granting of a franchise
Franchisor
an individual or organization granting a franchise
Franchisee
a person or organization purchasing a franchise
The Growth of Franchising
ARE FRANCHISES SUCCESSFUL?
- franchising is designed to provide a tested formula for success, along with ongoing advice and training
- success rate for business owned and operated by franchisees is significantly higher than the success rate for other inde
Global Perspectives in Small Businesses
- National and international economies are growing more and more interdependent as political leadership and national economic directions change and trade barriers diminish or disappear
- Globalization and instant worldwide communications are rapidly shrin
Summary
1) Define what a small business is and recognize the fields in which small businesses are concentrated
2) Identify the people who start small businesses and the reasons why some succeed and many fail
3) Assess the contributions of small business to our ec