Questions and Answers
What type of aid does the Small Business Administration (SBA) provide for small businesses?
Which trend is currently impacting entrepreneurship and small business ownership?
What do angel investors primarily provide for businesses?
What is one of the main functions of the SBA in relation to loans?
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Which of the following statements about angel investors is accurate?
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What is the first step in starting your own business?
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Which statement best describes intrapreneurs?
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What would be an inappropriate question for a prospective buyer to ask when considering an existing business?
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How do small business owners differ from entrepreneurs?
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What is a common use for business plans?
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Study Notes
Starting a Business
- Self-assessment is the crucial first step when starting your own business.
- Determining funding sources and creating a business plan are important but follow the self-assessment.
Intrapreneurs
- Intrapreneurs operate within large corporations, possessing autonomy similar to that of entrepreneurs.
- They exhibit traits like creativity, vision, and risk-taking while receiving regular salaries and benefits.
- They manage mini-companies within large organizations.
Buying an Existing Business
- When evaluating a business for purchase, inappropriate questions should be avoided.
- Asking about the intended use of the down payment is considered inappropriate during negotiations.
Small Business Owners vs. Entrepreneurs
- Small business owners typically accept the status quo and take a short-term view compared to entrepreneurs.
- Entrepreneurs are characterized as innovators and calculated risk-takers pursuing new ideas for products or services.
Growth-Oriented Entrepreneurs
- Eric Baker and Jeff Fluhr created StubHub.com, addressing ticket scalping by connecting buyers and sellers.
- Their initiative exemplifies a growth-oriented entrepreneur, as they consistently aim to expand their business.
Importance of Business Plans
- Business plans primarily serve to persuade lenders and investors to finance a venture, showcasing the business's viability.
Financing Types
- Jill Hansom utilized debt financing by borrowing $40,000 to start her peach salsa business, indicating the use of loans rather than personal equity.
Small Business Administration (SBA) Support
- The SBA provides essential support to small businesses, including loan guarantees made by private lenders.
Trends in Entrepreneurship
- Entrepreneurial diversity is a significant trend shaping modern entrepreneurship and small business ownership.
- This shift contrasts with stagnant demographics that previously dominated the field.
Angel Investors
- Angel investors play a vital role in providing funding to start-up businesses, offering equity financing rather than low-interest loans or debt financing.
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Description
Explore the fundamentals of starting a business, including self-assessment, funding sources, and creating a business plan. Learn about intrapreneurs who innovate within corporations and how to evaluate buying an existing business. This quiz also distinguishes small business owners from entrepreneurs.
