Small Business Managment

Flashcard maker : Lily Taylor
small business definition
-under 500 employees
-localized business operations (Except marketing)
-financing supplied by one person or small group
-has the potential to become more than a “one-person show”
High-Potential (Gazelle)
small firm that has great prospects
Attractive small firm
small firm that provides sustainable profits to its owner
Microbusiness
small firm that provides minimal profits to its owner
lifestyle business
microbusiness that permits the owner to follow a desired pattern of living
entrepreneur (concept)
person who relentlessly pursues an opportunity, in either a new or an existing business, to create value while assuming both the risk and the reward for his or her efforts
entrepreneurial opportunity
an economically attractive and timely opportunity that creates value for interested buyers or end users
bootstrapping
doing more with less in terms of resources invested in a business and, where possible, controlling the resources without owning them
leadership characteristic
focused on honesty
opportunity obsession
aware of market and customer needs
domineering manager
overbearing; way to fail
founder
bring new firm into existence
entrepreneurship team
2 or more people who work together as entrepreneurs
franchisee
an entrepreneur whose power is limited by a contractual relationship with a franchising organization
social entrepreneur
entrepreneurial activity whose goal is to find innovative solutions to social needs, problems, and opportunities.
reluctant entrepreneur
a person who becomes an entrepreneur as a result of some severe harship
corporate refugee
a person who becomes an entrepreneur to escape an undesirable job situation
entrepreneurial motivations
-personal fulfillment
-personal satisfaction
-independence
-financial rewards
technician personality
-a personality that focuses on an already developed technical skill
-wants to be left alone to get the job done
-is primarily concerned about the present
entrepreneur personality
a personality that focuses on the business as a whole and providing results for the customer
“second step” entrepreneur
an administrative entrepreneur who oversees the operations of on going business
A sample of small business firm
What is high in risk in small business?
Location and market of small business
A gold of an entrepreneur
Freedom to operate independently
The reward of Small Business
Customer focus
if properly managed, small entrepreneurial companies have the advantage of being able to serve customers directly and effectively, avoiding the layers of bureaucracy and corporate policies that tend to stifle employee initiative
Quality performance
-quality is independent of firm size
-if there is an advantage it usually goes to the smaller business
-should not accept anything less than the highest quality performance.
Niche market
a specific group of customers with an identifiable but narrow range of product or service interests
Integrity
a general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances
An Unacceptable behavior in the work place
misuse of company time, abusive behavior, lying to employees, company resource abuse, violations of internet use policies, discrimination, conflicts of interest, health and safety violations, lying to outside stakeholder, falsifying time reports or hours worked, sexual harassment, accepting bribes or kickbacks
Stakeholders
individuals or groups who either can affect or are affected by the performance of the company
A Sample of community involvement
The consequence of product and service
An Unethical act of employees
loafing on the job, working too slowly, or taking an unjustified sick leave
Embezzlement
employee steals money from the firm
Social responsibility is
a company’s ethical obligations to the community

Regarded as the price of freedom to operate in a free economic system.

Skimming is
concealing some income and improperly claiming personal expenses to be business-related
An sample of skimming
tax evasion
What is the reason that employers monitor employees?
A sample of theft in intellectual of property
original intellectual creations, including inventions, literary creations, and works of art, that are protected by patents or copyrights.

eBay selling knock off handbags

Trust and reputation in Small Business
The most important key to ethical performance in Small Business (SB)
code of ethics
What is BBB?
-Providing consumers with free information to help them make informed decisions when dealing with a company

-Creating an incentive for businesses to adhere to proper business practices and earnestly address customer complaints

-Resolving questions or disputes concerning purchases through mediation or arbitration

Fair and profit in SB
What is a sustainable of SB?
environmentalism
An example of an industry especially vulnerable to efforts to protect the environment
fast lube and oil change centers, medical waste disposal, self-service car washes, and asbestos removal
Duty SBA

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