chapt4-x100

chapt4-x100 - Chapter 4: Small Business and Franchises...

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Chapter 4: Small Business and Franchises Definition and Scope of Small Business - To qualify as “small,” a business must have sales below $3.5 million a year and employ fewer than 500 people. According to the Small Business Administration, 99% of the 24.8 million businesses in the U.S. are small businesses. - Small businesses employ between 50-60% of the work force. - Small business and entrepreneurship are critical ingredients in the U.S. economy. - Independently owned and operated - Limited capital resources - Not dominant in their market Types of Small Business Lifestyle o Provides owners with a comfortable lifestyle. High Growth Ventures o Starting point for high potential opportunities. Business Incubators Organizations that assist new firms by providing low-cost facilities to small start- up ventures. Revival, Trends, And Economic Role of SB - After the Civil War, spurred by the Industrial Revolution, big business was the mainstay of the U.S. economy for the next 100 years. - In the 1980s, environmental factors combined to spur a strong revival of small business. During the decade, three times as many new businesses were formed compared to the
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This note was uploaded on 04/19/2008 for the course BUS-X 101 taught by Professor Other during the Spring '08 term at Indiana.

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chapt4-x100 - Chapter 4: Small Business and Franchises...

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