Read this preview and watch the video to get an overview of what you'll learn about in this chapter. As you watch the video and prepare to read the chapter in the textbook, consider the questions below.
Franchises grow by licensing their operations to local franchisees. Franchisees receive training, name recognition, and proven operational methods. They work hard, first learning the business and then finding ways to build a loyal customer following. In the process, they generate jobs and contribute to the growth of the local economy.
Franchises are one of many types of small business discussed in this chapter. We begin with a definition of small business, a description of industries that often attract small businesses, and a profile of some of the people who start small businesses. Next we consider the importance of small businesses in our economy. Following a discussion of the advantages and disadvantages of smallness in business, we emphasize the importance of a business plan. We then describe services provided by the Small Business Administration. We conclude the chapter with a discussion of the pros and cons of increasingly popular franchising, and conclude with global perspectives in small business.
- Starting a small business is a challenging proposition involving many factors. Personal factors include not only an entrepreneurial spirit, but also the ability to lead others, as well as being a self-starter, a responsible decision maker, and a good organizer. In your own words, describe what other factors might be important in starting a small business.
- Consider a business in your area that recently opened. How does it appear to be addressing customer needs and competitive pressures? Now consider a small business that recently failed. Can you think of any reasons for its failure?
