SBA Entrepreneurship & Small Business Fundamentals Flashcards

According to the SBA, what percentage of U.S. businesses are classified as small businesses?

Answer: 99.9%

According to the SBA, small businesses make up 99.9% of all U.S. businesses, demonstrating their critical importance to the American economy.

What is the definition of a 'startup' in the context of small business development?

Answer: A newly established business in its early stages of operations

A startup is a newly created business in the early stages of operations, typically focused on developing a scalable product or service.

Which of the following is a primary characteristic that differentiates entrepreneurs from managers?

Answer: Entrepreneurs identify and pursue new business opportunities, often taking personal financial risk

Entrepreneurs distinguish themselves by identifying market opportunities, taking calculated personal financial risks, and building new ventures to capitalize on those opportunities.

What is 'bootstrapping' in the context of starting a small business?

Answer: Funding and growing a business using personal resources and revenue without external financing

Bootstrapping means building and growing a business using personal savings and generated revenue rather than seeking outside investment or loans.

What is the main purpose of a feasibility study before launching a small business?

Answer: Assess whether a business idea is viable and likely to succeed

A feasibility study evaluates a business concept's market potential, financial requirements, and operational challenges before committing resources to launch.

What role does the SBA play in the U.S. economy according to its core mission?

Answer: Aid, counsel, assist, and protect the interests of small businesses

The SBA's core mission is to aid, counsel, assist, and protect the interests of small businesses and to help maintain and strengthen the U.S. economy.