Entrepreneurial Small Business 6th Edition by Jerome Katz solution manual

Professionalize
Acceptance
Personal Validation
External Legitimacy
What Limits Growth
Loss of Control
Market Response
Delegation Orientation
Delegation is difficult
Delegation is essential
< >The overall growth strategy describes the kind of business the owner or owners would like to have, from the perspective of how fast and to what level they would like the firm to grow.  There are four generic growth strategies:Lifestyle or part-time firms are those with sales less than $25,000 per year that are a supplemental income for the owner. These businesses start and stay very small, often operating seasonally or when the owner wants to work in the business.Growth quickly levels off after the owners operate long enough to learn the basics of making money in their industry.Traditional small businesses are the smallest full-time businesses, with schedules defined by customer, not owner, needs.These businesses have sales between $25,000 and $100,000.Growth levels off once the business achieves an income that provides a living for the owner and his family. High-performing small businesses tend to level off after success defined by sales between $100,000 to $1,000,000 range These firms grow at rates of between 5 – 15 % per year.High-growth ventures aim to grow over 25% per year and have sales of more than $1,000,000.These firms aim to become big businesses and pursue high levels of professionalization and external funding.Unicorns are at the tip of the group with valuation of one billion dollars or more – such as Uber and Airbnb. This text focuses on the 95% of the businesses outside the high-growth sector, the main Street businesses.MYTHS ABOUT SMALL BUSINESSES
 

	Learning Objective 01-03: Dispel key myths about small businesses.

  
 

The challenges of small business scare off or derail people.  Here are the common myths:
< >There’s not enough financing.You can’t start a business in a recession.To make profits, you need to make something.If you fail, you can never try again.Students don’t have the skills to start a business.90% of all new businesses fail within two years.There’s not enough financing The SBA reports 40% of solo entrepreneurs started with less than $5000Bank financing has been rising for 10 years as well as funding from family, friends, and angels.New sources of financing are available with crowdfunding.You can create websites, blogs, and drop-shipping businesses for free using online platforms.Bootstrapping techniques are methods to minimize your cost of doing business.To make profits, you need to make somethingOf the 10 most profitable industries for small businesses, 9 were services like dentists, tax preparations services, mining support services, credit counselors, insurance brokers, and legal and health practitioners.If you fail, you can never try againIf you close a business and pay off your debts, you did not fail.If you learn how to do better the next time, you’ve paid for another piece of your education.A large number of today’s successful entrepreneurs have had one or more failures.