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Questions and Answers
What is the maximum number of employees for a business to be classified as a small business according to the SBA?
What is the maximum number of employees for a business to be classified as a small business according to the SBA?
An entrepreneur can only be a self-employed individual.
An entrepreneur can only be a self-employed individual.
False
What term describes the ability of business owners to structure their lives to suit their needs?
What term describes the ability of business owners to structure their lives to suit their needs?
Flexibility rewards
Small businesses create ___% of the 3.4 million new jobs.
Small businesses create ___% of the 3.4 million new jobs.
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Match the following types of enterprises with their employee range:
Match the following types of enterprises with their employee range:
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What is a small business typically defined as in terms of employee count?
What is a small business typically defined as in terms of employee count?
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The Small Business Administration (SBA) is part of the U.S. government that only provides funding to small businesses.
The Small Business Administration (SBA) is part of the U.S. government that only provides funding to small businesses.
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What is the first hurdle faced by entrepreneurs when starting a small business?
What is the first hurdle faced by entrepreneurs when starting a small business?
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A __________ is a facility that offers subsidized space and business advice to companies in their earliest stages of operation.
A __________ is a facility that offers subsidized space and business advice to companies in their earliest stages of operation.
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Match the following organizations with their descriptions:
Match the following organizations with their descriptions:
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Study Notes
Small Business Opportunities and Rewards
- Small business: involves 1-50 people, owner manages daily operations
- Entrepreneur: person who owns or starts an organization (like a business)
- First hurdle: inaction (failing to begin)
- Second hurdle: taking the right actions
- Small Business Administration (SBA): part of US government supporting small businesses
- Small Business Development Centers (SBDC): offices sponsored by states and the federal government, providing free/low-cost assistance for small businesses.
- Incubators: subsidized space and business advice for companies in early stages
- SBA definition of a small business: fewer than 500 employees (USA)
- SMES (Small and Medium Enterprises): Small enterprise – 1-50 people (USA), Medium enterprise – 51-500 people (USA). In Egypt: Small enterprise - 1-50 people and Capital 50,000-1,000,000 L.E
- Entrepreneur vs. Owner-Manager: An entrepreneur is anyone who owns a business (self-employed, founder, heir, franchise). An owner-manager is someone who owns and runs a business.
Learning Objectives
- Understand the scope of small businesses in the US
- Differentiate between small businesses and high-growth ventures
- Discover rewards of entrepreneurship through business
- Dispel key myths about small businesses
- Identify actions crucial for becoming a small business owner
- Understand importance of small businesses to the economy and community
Rewards of Starting a Small Business
- Growth rewards: personal fulfillment from overcoming challenges
- Income rewards: financial gains from owning a business
- Flexibility rewards: ability to structure life to suit individual needs
Myths about Small Businesses
- Not enough financing
- Can't start a business during a recession
- Need to invent something to make a profit
- Failure means you can't try again
- Students lack skills to start a business
Small Business and the Economy
- Job creation (75% of 3.4 million new jobs)
- Employment for more than half of the population
- Creative Destruction: how newly created goods, services, or firms can hurt existing competitors
Chapter One: Asset, Liability, Owner's Equity, Revenue, and Expense Accounts
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Performance Objectives:
- Define and identify asset, liability, and owner's equity accounts
- Record business transactions in column form, including changes in assets, liabilities, and owner's equity
- Define and identify revenue and expense accounts
- Record business transactions in column form, involving all five elements of the fundamental accounting equation
- Fundamental Accounting Equation: A = L + OE (Assets = Liabilities + Owner's Equity)
- Asset: anything of economic value owned by the business (cash, property, or other things of value) with probable benefit. Examples: cash, trucks, building, specific items.
- Liability: debts owed; probable sacrifice of future economic benefits (e.g., loans; Accounts payable). Examples include loans and accounts payable
- Owner's Equity: owner's right to or investment in the business. Assets minus liabilities is Owner's Equity (A-L=OE). Examples include Capital.
5S Methodology
- A method for organizing a workplace, especially a shared one (shop floor or office), maintaining order and visual control within the workplace.
- Includes Sort, Set in order, Shine, Standardize, and Sustain
- The method is continual, not a one-time event and requires a change in workplace culture.
- Visual control, organization and standardization within the workplace to keep it clean, efficient and safe.
Planning:
- A basic management function involving detailed plans to balance organizational needs/demands with available resources.
- Includes establishing an overall strategy to achieve goals.
- Reasons for planning: Set standards to control; Provide direction; Minimize waste; Reduce the impact of change
- Planning types: Single-use (for unusual purposes), Standing (recurring activities), Formal (documented, shared with members), Informal (internal vision)
- Specific plans are detailed, precise, and avoid ambiguity; Directional plan is flexible and aims at a general outcome.
- Elements in Planning: Goal Specificity; Participative Decision Making; Explicit Performance Period; and Performance Feedback.
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Description
Test your knowledge on small business concepts, entrepreneur definitions, and the role of the Small Business Administration. This quiz covers essential terminology and classifications that define small businesses in the U.S. economy.
