Phone: (561) 762-2279

e-mail: info@aurorainstitute.org

INCO Terms

Why do businesses fail? (And it will not happen to you.)

According to the Small Business Administration the following are the main reasons of business failure: 

1) Lack of experience
2) Insufficient capital (money)
3) Poor location
4) Poor inventory management
5) Over-investment in fixed assets
6) Poor credit arrangements
7) Personal use of business funds
8) Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:
9) Competition
10) Low sales  

Lack of experience is on top of the list. This list however fails to mention what kind of experience. We assume that by lack of experience the SBA does not mean the lack of experience in producing the good or services (why else would they try to do what they try to do?), but lack of technical experience in management, operations, and back-office activities. Either way, all the above reasons the SBA mentioned are clearly related to the lack of planning as a result of the lack of experience and/or expertise. If these businesses would conduct research, plan, measure and manage their business on a day to day basis, they would (at least in most cases) not have the inability to prevent and react to the constantly changing business and market climates. Most of all the other reasons mentioned indicate clearly a lack of management as well. Whether that is performance management, Human Resource Management such as staying updated and improving management, and/or back office skills and qualification, it is obvious that there was no timely identification of potential problems. Consequently no corrective action could have been undertaken or it was too late.

What are "Inco Terms"?

Inco Terms are terms used in the Transportation Industry and in the Supply Chain.

We provided a link on the left (just click on the truck) to some commonly used "INCO Terms".

What are "Low Income Countries"?

One of the main objectives of our institute is to promote the international trade between these companies and importers/exporters and possible subcontractors in the so called "Low Income Countries" as defined by the World Bank.

The world is getting smaller and smaller every day. Improvements in communications and supply chain make it all easier to conduct business on a global level. However, this will only benefit the countries and regions that have to capabilities to answer the demand. Good examples of this are the emerging countries such as China and India. Underdeveloped countries are obviously not at the same level as the emerging countries like China and India. Unfortunately, the more the developed countries concentrate on the industrial capabilities that are already in place or are developing at a high rate, the more the underdeveloped and poorest countries are neglected.

Countries with a Gross National Income of $825 or less per Capita. Countries with $825.00 GNI per Capita or less are considered by the Worldbank as "Low Income Countries".

There are 59 countries designated by the Worldbank as "Low Income Countries". The average GNI per Capita was in 2000 for these countries $380.00, in 2003: $440.00, and in 2004: $510.00

 Equity is complementary to the pursuit of long-term prosperity. Greater equity is doubly good for poverty reduction. It tends to favor sustained overall development, and it delivers increased opportunities to the poorest groups in a society."Fran￧ois Bourguignon, Senior Vice President and Chief Economist, The World Bank

Low Income Countries.

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Low Income Countries are countries with less then $825.00 Gross National Income (GNI) per Capita.

Source: WordBank & UNIDO

What are "HUBZones"?

HUBZone is an abbreviation of Historically Underutilized Business Zone. These areas are designated by the Federal Government and governed by the SBA. . Business located in these areas need to apply for certification and therefore need to meet certain criteria.  The official name of the program is HUBZone Empowerment Contracting Program and is described in the Federal Registry 13 CFR, parts 121, 126, and 128. The program is race and gender neutral The HUBZone program became effective in September 1998 and was initiated in 1996 by the Bradstreet because some Bradstreet departments failed to meet the set goals for M/WBE participation in their procurement program. It is not completely clear what the reason was for this failure. It is unknown if it was because of lack of availability or other reasons. Either way, the HUBZone program was initiated and was a success from the start. Soon after the implementation of the program by the Bradstreet, other government agencies adopted the program and the SBA became the administrators.

A "HUBZone" is an area that is located in one or more of the following:

a qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);

a qualified "non-metropolitan county" (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on US Department of Labor recent data; or lands within the boundaries of federally recognized Indian reservations.

Eligibility:

A small business must meet all of the following criteria to qualify for the HUBZone program:

• it must be located in a "historically underutilized business zone" or HUBZone.                      
• it must be owned and controlled by one or more US Citizens, and
• at least 35% of its employees must reside in a HUBZone.

Number of Historically Underutilized Businesses (HUBZone Business) by State. July 2005 vs. January 2006

Click on each State below to see the actual value.