1. What are the three main causes of small-business failure? a. The 3 main causes of businesses fail are management shortcomings, lack of training, and government regulations. Many times people are unprepared for the demands of running a small business. It takes all of your time, money and energy to keep a small business alive. . In the beginning it's all about you and you have to be honest with yourself about just how capable of a manager you are. If you make rash, fearful decisions or if you are not great at managing people, you will have a hard time making your business work. This also has to do with if the individuals that start the businesses have very little training. It’s hard to train others when you, yourself have no idea what’s going on. Another reason is government regulations. There’s a lot of government red tape to go through and the fact of the matter is that larger firms are better prepared to deal with government requirements. 2. What are business incubators?
a. Business incubators are local community initiatives to share resources for small start-ups. Examples of business incubators are Small Business Development Centers or Score chapters. 3. What are benefits to both parties of franchising?
a. Franchising can benefit the person looking to franchise because it can reduce the amount of time and effort required to start a business. The franchisor has already developed and tested the concept, and the brand may already be familiar to prospective customers. The franchisor is benefiting from this deal because it gets the name of their company out there and someone else is going to do things the way the franchisor wants them done. 4. How do entrepreneurs differ from managers?
a. Entrepreneurs differ from managers through their overriding responsibility to use the resources of the organization to accomplish their goals. Entrepreneurs are willing to assume risk to get to their goals. This includes financial, social, and career risks. 5. How...
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