Chapter 3 Reflection

In this Chapter 3, I learned many new things about franchises and entrepreneurial trends. A franchise is a legal agreement for a person to start a business in the name of that recognized company. The franchisor sells the franchise to the entrepreneur for a fee.The entrepreneur or A franchisee (person who buys the franchise) will run that business under the company's guidelines. This is great way to become an entrepreneur as it will allow to run a business without all the risk and cost of starting their own business. There are many entrepreneurial trends and these include, internet businesses, service businesses, home-based businesses, socially responsible non-profit businesses, focus on technology, outsourcing, strategic alliances, and corporate ventures. Internet businesses has transformed the way business is conducted. 46% of the small businesses that use the internet have grown faster than the 46% of those who didn't use the internet. Service businesses dominate the modern American economy. Its the biggest and fastest-growing part of the American economy. Home-based business make a huge majority of businesses. This type of business is usually set up when people lose their jobs. Non-profit businesses are exempt from paying taxes but has to keep all profits in the business. This business is usually started up to help society. Focus on technology has a stronger chance of surviving. Outsourcing allows a small business to focus on what it does best while tapping into outside resources for expertise. A strategic alliance allows two businesses to join together to provide a service. One can't be without the other. A corporate venture is when a large corporation decides to start a smaller business inside of its corporation. An example of this is Nike which is a big corporation and starting Jordan inside of the corporation.