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Related Flashcards
Cards In This Set
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Name the advanages of small business ownership. (5)
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Independence, Cost, Flexibility, Focus, and Reputation.
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Leading reasons why entrepreneurs go into business for themselves. (2)
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Independence and opportunity to better themselves.
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How is the cost difference in a small business versus large ones?
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Usually require less money to start and maintain.
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What do small businesses have the flexibilty to do?
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Adapt to changing market demands.
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How can small businesses benefit from one layer of management?
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Decisions can be made quickly.
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Small firms can focus their efforts on what?
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A precisely defined market or niche or a specific group of customers.
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Small firms can develop what? This demonstrates what?
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Reputations for quality and service demonstrating a commitment to customer satisifcation.
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Name the disadvantages of small business ownership. (2)
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High stress level and high failure rate.
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What are the worries in small business ownership that cause high stress? (3)
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Business, competition, or changing market demand.
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In a small business, what is the norm for work days and vacations?
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Long work days and few vacations.
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What are some reasons why small businesses have a high failure rate? (3)
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Poor business management, a poor business concept, and burdens imposed by governement regulation, insufficient funds during slow periods, and competition from others.
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What are the 3 major causes of small business failure?
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Undercapitalization, Managerial Inexperience or Incompetence, and Inability to Cope with Growth.
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Define Undercapitalization
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Lacking sufficent funds to operate the business efficiently.
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The shortest path to failure in a business is what?
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Undercapitalization
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Along with a vision, an entreprenuer needs what to manage a growing business effectively?
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Knowledge and/ or experience.
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