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Please ensure the reference page is retrievable. Please answer Critical Thinking question 2 on page 165.
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CH A P T E R 6 E ntrepreneurship and Starting a S mall Business
165
First, learn from others. Take courses and talk with some small-business owners. Second,
get some experience working for others. Third, take over a successful firm. Finally, study the
latest in small-business management techniques.
LO 6–4
Analyze what it takes to start and run a small business.
What goes into a business plan?
See the outline of a business plan in the chapter.
What sources of funds should someone wanting to start a new business
consider investigating?
A new entrepreneur has several potential sources of capital: personal savings; family and
business associates; banks and finance institutions; angels, crowdfunding, and venture
capitalists; and government agencies and more.
What are some of the special problems that small-business owners have in
dealing with employees?
Small-business owners often have difficulty finding competent employees and grooming
employees for management responsibilities.
Where can budding entrepreneurs find help in starting their businesses?
Help can come from many sources: accountants, lawyers, marketing researchers, loan
officers, insurance agents, the SBA, SBDCs, SBICs, peer groups, and even college professors.
LO 6–5
Outline the advantages and disadvantages small businesses have
in entering global markets.
What are some advantages small businesses have over large businesses in
global markets?
Foreign buyers enjoy dealing with individuals rather than large corporations because (1)
small companies provide a wider variety of suppliers and can ship products more quickly
and (2) small companies give more personal service.
Why don’t more small businesses start trading globally?
There are several reasons: (1) financing is often difficult to find, (2) many people don’t
know how to get started and do not understand the cultural differences in foreign markets,
and (3) the bureaucratic red tape is often overwhelming.
business plan 156
enterprise zones 150
entrepreneurial team 147
entrepreneurship 144
incubators 150
intrapreneurs 147
market 160
micropreneurs 148
Service Corps of
Retired Executives
(SCORE) 162
small business 152
Small Business
Administration (SBA) 159
Small Business
Investment Company
(SBIC) Program 160
venture capitalists 159
1. Do you have the entrepreneurial spirit? What makes you think that?
2. Are there any similarities between the characteristics demanded of an entrepreneur and
those of a professional athlete? Would an athlete be a good prospect for entrepreneurship? Why or why not? Could teamwork be important in an entrepreneurial effort?
Why or why not?
KEY TERMS
CRITICAL
THINKING
3. Imagine yourself starting a small business. What kind of business would it be? How
much competition is there? What could you do to make your business more attractive
than those of competitors? Would you be willing to work 60 to 70 hours a week to make
the business successful?
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