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Entrepreneurship and Small-Business Ownership (Financing Options for Small…
Entrepreneurship and Small-Business Ownership
Roles of Small Business
Provide jobs
introduce new products
Meet the needs of larger organizations
inject considerable amount of money
Provide specialized goods and services
Characteristics of Small Businesses
Have narrow focus
Limited resources
Freedom to innovate
Easier to make desicions
Factors contributing to the
increase in small businesses
E-commerce
Social media
Technological advances
Growing diversity in entrepreneurship
Corporate downsizing and outsourcing
Qualities shared by successful Entrepreneurs
Confidence
Passion
Have drive
Why New Businesses Fail?
Leadership Issues
Managerial incompetence
Lack of strategic planning
Lack of relevant experience
Marketing and Sales Issues
Ineffective marketing
Uncontrolled growth
over reliance on a single customer
Financial Issues
Inadequate financing
Poor cash management
Too much overhead
Systems and Facilities Issues
Poor location
Poor inventory control
Financing Options for Small Businesses
Seed money
Microlenders
Venture Capitalists
Angel investors
Initial public offering
Crowfunding
The Franchise Alternative
Franchise
Franchisee
Franchisor
Advantage of Franchising
Name recognition
National advertising programs
Standardized quality
Disadvantage of Franchising
Little control over desicions
No option of independently changing your business