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Chapter 6
Vocabulary
| Term | Definition |
|---|---|
| Entrepreneur | someone who takes a risk in starting a business to earn a profit |
| Entrepreneurship | the process of starting organizing, managing, and assuming the responsibility fro a business |
| Venture Capital | money provided by large investors to finance new products and new businesses that have a good chance to be very profitable |
| Innovation | an invention or creation that is brand new |
| Improvement | is a designed change that increases the usefulness of a product, service, or process |
| Small business | an independent business with fewer than 500 employees |
| SBA | a government agency that helps small business owners develop business plans and obtain financing and other support for their companies |
| Business Plan | a written description of the business idea and how it will be carried out |
| Start-up Financing | the amount of money needed to open the business |
| Short-term Financing | the money needed to pay for the current operating activities of a business |
| Long-term Financing | money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years |