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OVERVIEW, LEARNING OBJECTIVES, CLASS PREPARATION

CHAPTER 5- Small Business, Entrepreneurship, and Franchises

OVERVIEW
Our study of small business—the final chapter in Part II, “Trends in Business Today”—is a logical sequel to Chapter 4, “Choosing a Form of Business Ownership.” Nine out of ten business firms in the United States are classified as “small,” and many business students will be employed in small companies or will become entrepreneurs themselves one day. Accordingly, we begin Chapter 6 with a profile of the small business. We define small business, list the industries that are widely represented in small firms, and analyze some of the characteristics of the entrepreneurs who start small businesses and why small businesses fail. The importance of small business in our economy is acknowledged with respect to four main areas: small businesses are sources of technical innovation, employers, spurs to competition, and specialized marketers. Following a discussion of the advantages and disadvantages of smallness, we emphasize the importance of a business plan and then turn our attention to the Small Business Administration, noting the various forms of assistance it offers to small firms. Finally, we examine franchising, an increasingly popular form of small-business ownership. We use an extended illustration to explain how a franchise originates, and we discuss the advantages and disadvantages to both franchisor and franchisee. We conclude the chapter with global perspectives in small businesses.


Learning Objectives
After studying this chapter, students should be able to:
1. Define what a small business is and recognize the fields in which small businesses are concentrated.
2. Identify the people who start small businesses and the reasons why some succeed and many fail.
3. Assess the contributions of small businesses to our economy.
4. Judge the advantages and disadvantages of operating a small business.
5. Explain how the Small Business Administration helps small businesses.
6. Appraise the concept and types of franchising.
7. Analyze the growth of franchising and franchising’s advantages and disadvantages.
Class Preparation

Format for Discussion Questions: Typed, (Question in bold) followed by double space and then your answer.
Assignments may be submitted in class paper copy, email, or via Blackboard.
Late assgnments will recieve a maximum of 50% credit

CLASS PREPARATION

READ Chapter 5,Video Case 5.1 Be prepared to discuss the questions at the end of the case
READ Running a Business Part II Finagle A Bagle: A fast-Growing Small Business
Answer Discussion Questions 1,2,3,4

 
Crossword: Please download to desktop then open

 

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