Introduction
Before an entrepreneur starts producing a good or service, he or she must investigate many other factors: business organization and planning, tax codes, laws and regulations pertaining to business in general and the entrepreneur's product in particular, and so on. In this lesson, students will collect information from the Internet to find answers to basic business planning questions.

Lesson Description
Students will browse the information located on the Small Business Administration Web site to learn how an entrepreneur can plan, organize, and run a small business. Students will answer four questions and apply this information by writing a loan proposal for their business.

Previous Knowledge Expected
entrepreneur: person who organizes, manages, and assumes the risks of a business in order to gain profits

Applied Content Standards (from the National Council on Economic Education)
Standard 14: Entrepreneurs are people who take the risks of organizing productive resources to make goods and services. Profit is an important incentive that leads entrepreneurs to accept the risks of business failure.

Instructional Objectives
1. Students will discover some of the resources of information and assistance available to the small business owner over the Internet and through government sponsored agencies.
2. Students will understand that the entrepreneur is subject to tax codes, government laws, and regulations that will affect the owner's decisions.
3. Students will apply this knowledge by writing a business loan proposal.

Student Web Activity Answers
1. A business plan defines the business and specifies goals. Its basic components include a balance sheet, an income statement, and a cash flow analysis. It helps owners think through important issues, and it serves as a valuable tool when explaining the business to lenders.
2. The SBA does not have funds of its own to loan, but it works with intermediaries, banks, and other lending institutions to provide loans and venture capital financing to small businesses unable to secure financing through normal lending channels.
3. The SBA sponsors the Service Corps of Retired Executives (SCORE) which provides one-on-one counseling at no charge. The SBA has Small Business Development Centers that provide training, counseling, research, and other specialized assistance. In cooperation with the private sector, it also sponsors programs to help launch small businesses. Publications, videos, tapes, and software are available from the SBA.
4. State regulations may include licensing and zoning laws. Business taxes, worker's compensation, and minimum wage rates may all affect your business. Additionally, you will have to consider training procedures and an employee manual.
5. Students' proposals will vary, but all should include information regarding business description, management profile, market information, and financial information.

Go To Student Web Activity