Introduction to Business Chapter 21 Opportunities in Small Business Essential Question: What opportunities are in small business?

Objectives: 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment. 1.2.2 Business Law–describe the sources of law, the structure of the court systems and ways in which these laws apply to basic consumer and business transactions. 1.2.4 Competitive Environment–explain the economic effects of competition on a business in an international marketplace. 1.2.8 Interrelationships of Business Operations–discuss the interrelationships between different business lines as they relate to finance, tax, operations, human resources, marketing, production, management, and the legal environment. 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. They will demonstrate competency by using appropriate technology and other resources to solve business problems. 1.4.1 Business/Financial Relationships–analyze the financial implications of various functions of a business and describe how they interrelate 1.4.2 Demographics–interpret demographic data and explain its impact on the economy. 1.4.3 Economic Culture–explain how culture affects economic practice and business ethics

Chapter Objectives Define a small business. Identify reasons why small businesses fail. Describe several sources of help for small-business owners. List characteristics of successful business owners.

Small-business opportunities A small business is one that has the owner as a manager, is not dominant in its field of operation, employs fewer than 500 people and usually serves its local community.

Small-business problems Small businesses fail because owners: Do not keep adequate records Do not have enough start-up money Lack sales and management experience Lack experience in the type of business owned Do not control operation expenses Have a poor business location Fail to manage payments due from customers for purchases made.

Small-business problems bankruptcy – a situation in which a business does not have enough money to pay its creditors even after selling its equipment and other capital resources. closing – a situation in which a business is discontinued with a loss occurring to at least one creditor . creditor – a person that is owed money.

Help available for small businesses Small-business owners can get help from the Small Business Administration, from Small Business Institutes, and from organizations such as SCORE. Service Core of Retired Executives (SCORE) – a group of retired executives who can provide assistance to small-business owners. Small Business Administration (SBA) – a government-funded organization that helps small-business owners borrow money as well as manage their businesses more efficiently. Small Business Institutes (SBI) – programs offered in cooperation with colleges and universities to provide management counseling.

Characteristics of business owners. p. 285 Successful small –business owners tend to be: Self-starters Leaders Planners Hard workers Decision-makers achievers Responsible Trustworthy Healthy individuals

Young entrepreneurs p. 286 entrepreneur – someone who takes a risk in starting a small business. entrepreneurship – the process of starting, organizing, managing and assuming the responsibility venture business – a business that has been in operation less than three years and has no employees other than the owner. venture capital – money used to start up a new small business or help a business expand during a growth period.

Assignments Do Now Monday--Calculate Business Data p.290 #30 Tuesday--Calculate Business Data p.290 #31 Wednesday--Calculate Business Data p.290 #32 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions 8-15 p. 288. Discuss questions with your group and write a brief answer to both questions

Homework Define Key Terms Develop your Business Language 289. Answer Review your reading questions 1-7 p.288. Section Three of The Resume Handbook for High School Students.