Session:5 Entrepreneurship: Starting and Managing Your Own Business
Key Terms
Introduction to Business | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/introduction-business
- angel investors
- Individual investors or groups of experienced investors who provide financing for start-up businesses by investing their own funds.
- business plan
- A formal written statement that describes in detail the idea for a new business and how it will be carried out; includes a general description of the company, the qualifications of the owner(s), a description of the product or service, an analysis of the market, and a financial plan.
- debt
- A form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.
- entrepreneurs
- People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit, or greatly changing the scope and direction of an existing firm.
- equity
- A form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business.
- intrapreneurs
- Entrepreneurs who apply their creativity, vision, and risk-taking within a large corporation, rather than starting a company of their own.
- small business
- A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.
- Small Business Administration (SBA)
- A government agency that speaks on behalf of small business; specifically it helps people start and manage small businesses, advises them in the areas of finance and management, and helps them win federal contracts.
- Small Business Investment Company (SBIC)
- Privately owned and managed investment companies that are licensed by the Small Business Administration and provide long-term financing for small businesses.
- venture capital
- Financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.