BUS 200 Chapter Notes - Chapter 4: Small Business, Business Plan, Franchising
Business 200 Chapter 4
Nascent Entrepreneurs
People who are trying to start a business from scratch
Small business
An independently owned and managed business that does not dominate its market
New venture
A recently formed commercial organization that sells stuff(recent=past 12 months)
Entrepreneurship
The process of identifying an opportunity in the marketplace and accessing the resources
needed to capitalize
Entrepreneur
A business person who accepts both the risks and the opportunities involved in creating and
operating anew business venture. They want to control their own destiny and prefer to take a
chance rather than looking for secure job.
Intrapreneurs
People who create something new within an existing large firm or organization.
A key difference between 'intra' and 'entre' -preneurs is that intrapreneurs don't have to worry
about getting resources to bring the new product to market.
Private sector
Companies that are not owned or controlled by Gov.
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Entrepreneurial Process
influenced by the SOCIAL, ECONOMIC, and TECHNOLOGICAL factors in the environment
Three KEY elements in the entrepreneurial process
1. the Entrepreneur
2. the Opportunity
3. the Resources
Entrepreneurs must identify an opportunity and access resources
Where do business ideas originate
idea originate from events relating to work or everyday life
Screening
Weeding out the "dead-end" ventures before they incur significant costs.
Sales Forecast
An estimate of how much of a product or service will be purchased by prospective customers
over a specific period.
Exit Costs
If a venture is not expected to make a profit for a number of years, its exit costs are high.
On the other hand, if a venture is expected to make a profit quickly, its exit costs will be lower,
making the idea more attractive.
Franchise
An arrangement that gives franchisees(buyers) the right to sell the product of the
franchiser(seller)
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
People who are trying to start a business from scratch. An independently owned and managed business that does not dominate its market. A recently formed commercial organization that sells stuff(recent=past 12 months) The process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize. A business person who accepts both the risks and the opportunities involved in creating and operating anew business venture. They want to control their own destiny and prefer to take a chance rather than looking for secure job. People who create something new within an existing large firm or organization. A key difference between "intra" and "entre" -preneurs is that intrapreneurs don"t have to worry about getting resources to bring the new product to market. Companies that are not owned or controlled by gov. Entrepreneurial process influenced by the social, economic, and technological factors in the environment. Three key elements in the entrepreneurial process: the entrepreneur, the opportunity, the resources.
