The Business Environment
Small Business Notes: The Business Environment
What is business?
· Commerce
· Trade
· Industry
· Work
What is A BUSINESS?
An organization that produces or distributes a good or service for profit.
Why do Businesses Exist?
· Profit
· Growth
· Service
· Social goals
What is a “Small Business”?
Business which is independently owned and operated for profit and which is not dominant in its field. Alternatively, a
business could be classified as small according to the number of employees or the amount of sales it has.
A maker of goods, or manufacturer sells to a wholesaler who sells to a retailer who sells to the end consumer.
Why should we care about the study of small business?
· Nearly 99% of all businesses in the U.S. are classified as small businesses.
· There are about 23 million businesses in the U.S. and only just over 14,000 of these employ more than 500
workers.
· Small businesses employ nearly ½ of the nation’s workforce.
· Small businesses provide technical innovation with new ideas.
· Small businesses provide employment
· Small businesses increase competition in our capitalistic economy.
What are some key characteristics of Small Businesses?
· Relatively low investment is required.
· Special skills or knowledge is usually required.
What are some competitive advantages of small businesses?
· Specialized expertise
· Makes good profit
· Can provide good quality
· Customized hours/service
· Located closer to customer
· Can change quickly
What are some competitive disadvantages of small businesses?
· No reputation
· Easy to fail
· Tough to weather the slow times
· Tough to raise capital
What type of industries would be attractive to small businesses?
· Those that require low initial investment
· Those that require special skills or knowledge
· Service or retail businesses
What is the SBDC and the SBA?
The SBDC is the Small Business Development Center whose mission is to “provide assistance to small businesses and aspiring entrepreneurs throughout the United States and its territories”.
The SBA is the Small Business Association is “an independent agency of the federal government” meant “to aid,
counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to
maintain and strengthen the overall economy of our nation.”
What is the purpose of Entreskills?
Entreskills is a website that was set up for high school students to learn about entrepreneurship.
What is business?
· Commerce
· Trade
· Industry
· Work
What is A BUSINESS?
An organization that produces or distributes a good or service for profit.
Why do Businesses Exist?
· Profit
· Growth
· Service
· Social goals
What is a “Small Business”?
Business which is independently owned and operated for profit and which is not dominant in its field. Alternatively, a
business could be classified as small according to the number of employees or the amount of sales it has.
A maker of goods, or manufacturer sells to a wholesaler who sells to a retailer who sells to the end consumer.
Why should we care about the study of small business?
· Nearly 99% of all businesses in the U.S. are classified as small businesses.
· There are about 23 million businesses in the U.S. and only just over 14,000 of these employ more than 500
workers.
· Small businesses employ nearly ½ of the nation’s workforce.
· Small businesses provide technical innovation with new ideas.
· Small businesses provide employment
· Small businesses increase competition in our capitalistic economy.
What are some key characteristics of Small Businesses?
· Relatively low investment is required.
· Special skills or knowledge is usually required.
What are some competitive advantages of small businesses?
· Specialized expertise
· Makes good profit
· Can provide good quality
· Customized hours/service
· Located closer to customer
· Can change quickly
What are some competitive disadvantages of small businesses?
· No reputation
· Easy to fail
· Tough to weather the slow times
· Tough to raise capital
What type of industries would be attractive to small businesses?
· Those that require low initial investment
· Those that require special skills or knowledge
· Service or retail businesses
What is the SBDC and the SBA?
The SBDC is the Small Business Development Center whose mission is to “provide assistance to small businesses and aspiring entrepreneurs throughout the United States and its territories”.
The SBA is the Small Business Association is “an independent agency of the federal government” meant “to aid,
counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to
maintain and strengthen the overall economy of our nation.”
What is the purpose of Entreskills?
Entreskills is a website that was set up for high school students to learn about entrepreneurship.