Практический курс английского языка = Practical Course of English for Students of Economics. Учебное пособие для студентов экономических специальносте

; Reading

Text 1

1. Read the text and complete the outline of its content given below; some items are suggested to you.

Small Business

Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. Many people, however, hesitate to pursue this dream because they don’t think they have enough education, experience or money – or are simply afraid they might fail. Others can’t accept the idea that they can change their lives – that people like them could ever own their own business. For still others, going into business for themselves is a financial necessity because they have lost their job and there are no other readily available ways to earn a living, or even survive.

Whatever the reason, owning your own business can be one of the most challenging, satisfying, demanding and rewarding things you do in your life. However, there are real risks and difficulties in starting any new business.

Small business owners are also called entrepreneurs. One definition of an entrepreneur is someone who organizes, manages and assumes the risks of a business or enterprise. Other experts say an entrepreneur is a person who can “create out of nothing” a viable business.

There are a number of myths and misconceptions about what it takes to be an entrepreneur. One misconception is the people who go into business for themselves are naturally high risk-takers. Of course, there are risks in business, but real entrepreneurs aren’t gamblers who depend solely on chance to succeed.

In fact, just the opposite is true: successful entrepreneurs do everything possible to minimize the real risks associated with starting a company by studying, planning and organizing the information, people and materials they will need to succeed. They manage risk by setting reasonable and obtainable goals – then work to achieve them. In short, the successful small business owner works hard and intelligently.

Despite what many think, starting a successful small business does not always require a lot of formal education or prior management experience. Certain basic skills will be needed, plus some background in the business being contemplated. Just as important as formal education is the willingness to learn and improve the skills needed to succeed in business.

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One of the biggest misconceptions about entrepreneurs is that they are only interested in making money. Entrepreneurs certainly like and respect money, but money is only a byproduct of an even bigger goal for many very successful entrepreneurs.

As one U.S. expert on entrepreneurial management observed,

Many businesses fail because their owners were only interested in money. Most really successful companies are founded by someone with an idea and a dream. Whatever money and wealth they accumulated is the result of them being willing to work night and day to make this dream a reality. If you want to be really successful, know what your dreams are before going into business.

There are also a number of common traits successful entrepreneurs share:

–a great deal of energy;

–ability to establish priorities and make decisions;

–ability to deal effectively with a wide variety of people, such as customers, employees, suppliers, possible investors and lenders;

–ability to communicate clearly and effectively;

–ability to work with numbers;

–familiarity with customers and with the products or services to be

sold;

–ability to balance conflicts between business and personal goals;

–awareness of personal strengths and weaknesses.

Becoming an entrepreneur is a way of looking at the world, seeing opportunity where others see problems. It is also knowing how to use certain basic tools to achieve your goals.

Outline

1.Reasons for starting one’s own business.

2..............................................

3.Common misconceptions about entrepreneurs. 3.1. ........................................

3.2. ........................................

4..............................................

2.Read the text again and say if the following statements are true or false according to the information in the text.

1.People start their business for various reasons.

2.All the people starting their own business want to be independent.

3.Many people hesitate to set up their own business because they are afraid of failure.

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4.Real entrepreneurs are like gamblers because they solely depend on chance to succeed.

5.Starting and running a successful small business requires a lot of formal education and experience.

6.Many entrepreneurs fail because they are only interested in money.

7.Ability of dealing with people and communicating effectively is an important trait of a successful entrepreneur.

8.A successful entrepreneur must

4.Look through the text again and find the English equivalents of the following collocations.

Материальное вознаграждение; мечта всей жизни; добиваться осуществления мечты (идти за мечтой); зарабатывать на жизнь; трудное, ответственное дело; жизнеспособное предприятие; мифы

изаблуждения; целиком полагаться на случай; свести риск к минимуму; справиться с риском; ставить разумные, достижимые цели; образование, полученное в учебном заведении; предполагаемый бизнес; потерпеть неудачу; зарабатывать деньги; побочный продукт; воплотить мечту в жизнь; определить приоритеты; знание своих слабых и сильных сторон; достигать цели.

5.Comment on the following statements from the text.

1.People start their own business for various reasons.

2.There are a number of myths and misconceptions about entrepreneurship.

3.There are a number of common traits successful entrepreneurs

share.

6. Summarize the text in 5–7 sentences.

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Text 2

1. Read the following text and find out what franchising is.

The Franchise Alternative

One way to avoid some of the management headaches associated with starting a business is to invest in a franchise, an approach that enables you to use a larger company’s trade name and sell its products and services in a specific territory. In exchange for this right, the franchisee pays an initial fee and often monthly royalties as well to the franchiser (the corporation).

There are three basic types of franchises. In a product franchise, the franchisee pays the franchising company for the right to sell trademarked goods, which are purchased from the franchiser and resold by the franchisee. Car dealers and gasoline stations fall into this category. In a manufacturing franchise, like a soft-drink bottling plant, the franchisee is licensed by the parent company to produce and distribute its products, using supplies purchased from the franchiser. In a business-format franchise, the franchisee buys the right to open a business using the franchiser’s name and format for doing business. The fast-food chains typify this form of franchising.

Franchises account for about one third of all retail sales in the United States and employ 7 million people.

Franchising is not a new phenomenon. It has been around since the nineteenth century, when such companies as Singer and International Harvester established dealerships throughout the world. Early in this century, Coca-Cola and General Motors, among others, used franchises to distribute or sell their products. But the real boom in franchising began in the late 1950s, with the proliferation of hotels and motels like Holiday Inn and fast-food establishments like McDonald’s and Baskin-Robbins.

The latest trend in franchising has been diversification in the variety of products and services offered. Today, franchises range from day-care centers and health clubs to dental clinics and video-tape rental outlets. By and large, most are service operations.

Advantages of Franchising. Why is franchising so popular? According to the president of the International Franchise Association, franchising has triple benefits: “The franchiser wins because he builds a strong foundation for his company. The franchisee wins because he can take advantage of the franchiser’s proven business system. And the general public benefits from the consistency of the product or service.”

The biggest winners are generally the franchisers, who are able to expand their businesses through franchised outlets without depleting their own capital. Franchisers not only expand their business using other people’s money, they also receive regular income from franchisees, who pass on a percentage of their gross revenues and help pay for advertising and promotional costs.

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Investing in a franchise can also be good for the franchisee, because the risk is reasonably low. Ninety-two percent of all franchise outlets make it through their fifth year. When you invest in a franchise, you know that you are getting a viable business, one that has “worked” many times before. You also have the advantage of instant name recognition and mass advertising. An independent hamburger stand can’t afford a national TV advertising campaign, but McDonald’s, Burger King, and Wendy’s can. Few franchisees are able to write a check for the amount of the total investment. Most obtain a loan to cover at least part of the cost. According to the Department of Commerce, 16 percent of all franchisers provide some form of financial assistance such as low-rate loans. Another 34 percent assist the franchisees in preparing loan applications for banks, private investors, or the Small Business Administration.

Besides financial aid and advice, the franchiser gives a new franchisee training in how to run a business. Although franchising offers many advantages, it is not the ideal vehicle for everyone. For one thing, owning a franchise is no guarantee of wealth. It may be the safest way to get into business, but it is not necessarily the cheapest. According to some analysts, it costs 10 to 30 percent more to buy a franchise than to open a business independently. And not all franchises are extremely profitable operations.

One of the most significant financial variables is the monthly payment or royalty that must be turned over to the franchiser. The fees vary widely, from nothing at all to 20 percent of sales.

Another drawback of franchises is that they allow individual operators very little independence. Franchiser can prescribe virtually every aspect of the business, down to the details of employees’ uniforms and the color of the walls. Franchisees may be required to buy the products they sell directly from the franchiser at whatever price the franchiser feels like charging. Franchisers may also make important decisions without consulting franchisees.

2. Match the terms with their definitions:

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3. Find in the text the English equivalents for the following Russian terms:

Франчайзинг; франшиза; франчайзер (франшизодатель); франчайзи (франшизополучатель); франчайзинг товара; производственный франчайзинг; франчайзинг организации бизнеса (формата бизнеса); диверсификация; агенство, представительство (фирмы); финансовая переменная; торговая точка, работающая на основе франчайзинга.

4. Read the text again picking out the advantages and disadvantages of franchising for a franchiser and a franchisee.

5. Answer the following questions on of the text.

1. Why is franchising said to help avoid some problems associated with starting a business? 2. What are the two parties in franchising? 3. How many types of franchises are defined in the text? 4. What type of franchise is used when a franchisee makes and distributes the products licensed by the parent company? 5. Is franchising a new phenomenon? Since when has it been known? 6. What have been the recent trends in franchising? 7. Why does the franchiser win by selling a franchise? 8. Is buying a franchise a guarantee of success and profit for a franchisee? 9. What is often more costly – buying a franchise or opening a business independently? 10. Who has more freedom in business – franchisees or independent business operators?

6. Give a gist of the contents of the text.

Text 3

Complete the questionnaire below and analyze the results using the directions given after it. The language of the questionnaire is rather informal and abounds in phrasal verbs; to cope with this difficulty you may first do Activities 11–12 from the Language section.

Have You Got What It Takes to Be a Small-Business Owner?

This checklist will help you determine your potential for owning a small business.

A.Are you a self-starter?

1.I do things on my own. Nobody has to tell me to get going.

2.If someone gets me started, I keep going all right.

3.Easy does it1. I don’t put myself out2 until I have to.

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B.How do you feel about other people?

1.I like people. I can get along with just about anybody.

2.I have plenty of friends, I don’t need anyone else.

3.Most people irritate me.

C.Can you lead others?

1.I can get most people to go along when I start something.

2.I can give the orders, if someone tells me what we should do.

3.I let someone else get things moving.

D.Can you take responsibility?

1.I like to take charge of things and see them through.

2.I’ll take over if I have to, but I’d rather let someone else be responsible.

3.There’s always some eager person who wants to look smart. I’m glad to let that person do the work.

E.How good an organizer are you?

1.I like to have a plan before I start. I’m usually the one to get things lined up when the group wants to do something.

2.I do all right unless things get too confused. Then I quit.

3.When I get all set something comes along and presents too many problems. So I just take things as they come.

F.How good a worker are you?

1.I can keep going as long as I need to. I don’t mind working hard for something I want.

2.I’ll work hard for a while. But when I’ve had enough, that’s it.

3.I can’t see that hard work gets you anywhere.

G.Can you make decisions?

1.I can make up my mind in a hurry if I have to. It usually turns out okay, too.

2.I can if I have plenty of time. If I have to make up my mind fast, later I think that I should have decided the other way.

3.I don’t like to be the one who has to decide things.

H.Can people trust what you say?

1.You bet they can3. I don’t say things I don’t mean.

2.I try to be on the level most of the time, but sometimes I just say what is easiest.

3.Why bother if the other person doesn’t know the difference?

I.Can you stick with it?

1.If I make up my mind to do something, I don’t let anything stop me.

2.I usually finish what I start – if it goes well.

3.If it doesn’t go well right away, I quit. Why beat your brains out4?

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J.How good is your health?

1.I never run down.

2.I have energy for most things I want to do.

3.I run out of energy sooner than most of my friends seem to. Directions: If most of your checks were beside the first answer you

probably have what it takes to operate a business successfully. If not, you are likely to have difficulty and should consider getting a partner to compensate for your weaknesses. If most of your checks were beside the third answer, not even a good partner will enable you to overcome the deficiencies indicated.

Notes

1.Easy does it – Тише едешь, дальше будешь

2.put oneself out – стараться изо всех сил, выложиться

3.You bet (they can) – Можете не сомневаться.

4.beat one’s brains out – ломать голову, прикладывать максимум усилий

Text 4

1. Read the text and choose the most suitable title out of those given below.

–Small Business in the USA

–The Small Business Administration

–The Small Business Act

–Criticism of the SBA

The Small Business Administration, or SBA, is a United States Government agency that provides support to small businesses.

The SBA was established in 1953 by the United States Congress with the passage of the Small Business Act. Its functions are to make loans to small businesses unable to obtain financing from private sources on reasonable terms; to help small firms sell their products and services to the federal government; to make loans to small business concerns affected by natural disasters; to license and regulate privately owned investment companies that make loans to small businesses; to develop and improve the managerial skills of prospective and current small-business owners; and to provide aid and support to women and minority groups in order to increase their participation in small-business ownership. The head of the agency is appointed by the president with the advice and consent of the Senate.

The SBA has directly or indirectly helped nearly 20 million businesses and currently holds a portfolio of roughly 219,000 loans worth more than $45 billion making it the largest single financial backer of businesses in the United States.

The SBA has survived a number of threats to its existence. In 1996 the then Republican-controlled House of Representatives planned to

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eliminate the agency. It survived and went on to receive a record high budget in 2000. Renewed efforts by the Bush Administration to end the SBA loan program have met congressional resistance, although the SBA’s budget has been repeatedly cut.

The SBA has been subject to criticism on several occasions. Businesses applying for SBA loans are supposed to have previously been turned down by at least two banks. Designed to avoid direct competition with banks, this provision allows the most promising projects to be funded by the private sector leaving higher risk projects to be picked up by the government resulting in the government holding a higher share of non-performing loans.

The SBA has most recently been criticized for the manner in which it disbursed loans earmarked for businesses directly affected by September 11th. Lax oversight resulted in widespread abuse of the program as the low-interest loans were awarded to unaffected businesses.

2.Draw up a plan of the text and use it to summarize the contents.

3.Find out if there is a specialized government agency in your country, performing the functions similar to those of the SBA. Present its profile to the group.

Text 5

Self-Employment

1.Before you read the text discuss the following questions with your partners:

1.What do you understand by self-employment?

2.What advantages might there be in self-employment?

3.What disadvantages might there be?

2. Make sure you know the following words and phrases.

off the beaten track – в стороне от оживленных мест, дорог

go from strength to strength – библ. приходить от силы в силу; постоянно расти, улучшаться

touch and go (attr.) – рискованный, критический, опасный Catch 22 – ловушка 22 – взаимопротиворечивые условия; по-

ложение, из которого трудно выйти; бюрократические препоны на пути к цели (выражение из одноименного романа американского писателя Дж. Хеллера (1961)

financial track record – кредитная история

3. Read the interview of a small business owner and get ready to answer the questions that follow.

It’s a small bookshop in the centre of Brighton. A place called George Street. It’s a little bit off the beaten track, not in the main shopping

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street, because when we were first setting up, we didn’t have the money to afford the rent on such premises. We sell books to students of English as a Foreign Language, and teachers in their schools. We’ve been open for about four years now.

The reason we set up the shop in the first place was because both of us had been teachers for many years and we had the desire to be self-em- ployed rather than working for someone else all the time.

We’ve just gone from strength to strength, really. It was the first six or eight months which were touch and go, trying to get new customers, but now we’re very busy. We’ve got two other people working here.

Setting up the shop in the first place, as with all small businesses was very difficult, because it’s sort of Catch 22. You have no financial track record in running a business yourself, so nobody wants to lend you any money. And you’ve never previously ordered goods on credit from anyone, so nobody wants to supply you any goods on credit.

So the most difficult thing is to get your potential suppliers, in our case educational publishers, to agree to supply you with your opening stock and wait for their money. And the other one is to find some friendly bank manager who’s willing to lend you cash at an extortionate rate of interest, which is always the case with business loans.

Having got over those two problems, and found a property that we could operate from, the rest of it seems to have been comparatively easy. The business is going so fast now, we’re beginning to wonder whether it’s the business which is running us or us running the business. That’s the problem.

The other thing is that you don’t escape from being told what to do when you become self-employed. Because when you’re an employee, your boss tells you what to do. And when you’re self-employed, it’s your bank manager or your accountant or most of all your customers who tell you what to do. So you still find yourself tipping your cap to someone or other.

4. Answer the following questions:

1. What is the interviewee’s business? What does he sell? In which town? 2. Why isn’t his shop in a main street? 3. Why did he and his wife start the shop? 4. Have they been successful? 5. What were their first months in business like? 6. What are the common problems with setting up a small business? 7. What did they need: a. from educational publishers? b. from a bank manager? 8. Do they feel themselves free from others’ dictatorship now when they are self-employed? 9. Who tells the self-employed person what to do? 10. What do you think ‘tipping your cap to someone’ means?

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