1 / 26

Entrepreneurship and Small Business Management

6. Entrepreneurship and Small Business Management. CHARACTERISTICS OF ENTREPRENEURS. Entrepreneur One who takes a risk in starting a business to earn a profit Desire to be your own boss Special skills and abilities. ENTREPRENEURS IN ACTION. Barbers – Cabin Coffee Creative Graphics

Télécharger la présentation

Entrepreneurship and Small Business Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 6 Entrepreneurship and Small Business Management

  2. CHARACTERISTICS OF ENTREPRENEURS • Entrepreneur • One who takes a risk in starting a business to earn a profit • Desire to be your own boss • Special skills and abilities Chapter 6

  3. ENTREPRENEURS IN ACTION • Barbers – Cabin Coffee • Creative Graphics • Schroeder Plumbing Chapter 6

  4. Entrepreneurs are more persistent inquisitive energetic goal oriented independent self-confident creative reliable competitive WHAT DOES IT TAKE? Chapter 6

  5. WHAT DOES IT TAKE? (continued) Entrepreneurs have • problem-solving skills • tolerance for ambiguity • strong integrity • personal initiative • ability to secure resources • capability to learn from failure • willingness to work hard Chapter 6

  6. ENTREPRENEURSHIP AND THE ECONOMY • Employment • 1/10 involved in some type of entrepreneurship • 60% of these have hired employees • Financing • Comes from entrepreneurship • 50% also get help from family • May use Venture Capital • Money provided by large investors Chapter 6

  7. ENTREPRENEURSHIP AND THE ECONOMY • Productivity • Account for over $600 billion in sales • Responsible for nearly half of GDP Chapter 6

  8. NUMBER OF EMPLOYEESIN NEW BUSINESSES Chapter 6

  9. OPPORTUNITIES • Innovation • Invention or creation that is brand new (IPOD, IPAD) • Improvement • Design change that increase the usefulness of a product (Post its – to wall hooks) Chapter 6

  10. RISKS • Recognizing risks • Lack of adequate capital • Low sales • Higher than expected expenses • Competitive pressure • An owner unprepared to manage a growing business • Operations requiring more time than the owner is willing to commit Chapter 6

  11. SMALL BUSINESS OWNERSHIP • Description of a small business • Owner is usually the manager • Operates in one or very few locations • Typically serves a small market • Not dominant in its field • Small business employment • Employees nearly 50 of all workers Chapter 6

  12. SMALL BUSINESS OWNERSHIP • Ownership diversity • Women own over ¼ of all small business • 16% owned by Ethnic backgrounds • Most over 40 years old • High School diploma, 30% have college degree • Half are operated out of their homes. Chapter 6

  13. COMMON TYPES OF SMALL BUSINESSES Chapter 6

  14. SMALL BUSINESS ADVANTAGES • Meeting customer needs • Serve those with specific needs • Providing unique services • Plan a wedding, design a sound system Chapter 6

  15. COMMON REASONS FOR SMALL BUSINESS FAILURE • Not keeping adequate records • Not having enough start-up money • Lack of management experience • Lack of experience with the type of business • Not controlling operating expenses • Poor location for the business • Failure to manage credit offered to customers Chapter 6

  16. SMALL BUSINESS ASSISTANCE • Faculties of universities and colleges • Local groups of business people • Small Business Administration (SBA) Chapter 6

  17. THE BUSINESS DECISION • An idea plus experience • Right place and time • Team approach • Preparation and research Chapter 6

  18. WHAT IS A BUSINESS PLAN? • A business plan is a written description of the business idea and how it will be carried out, including all major business activities. Chapter 6

  19. ELEMENTS OF A BUSINESS PLAN • Description of the Business • The business idea • Major products and services • Ownership structure • Strengths/weaknesses • Long- and short-term goals Chapter 6

  20. ELEMENTS OF A BUSINESS PLAN (continued) 2. Description of Competition • Characteristics of the industry • Condition of the economy • Strengths and weaknesses of major competitors Chapter 6

  21. ELEMENTS OF A BUSINESS PLAN (continued) 3. Customer Analysis • Description of customers • Location, number, and resources of customers • Sales forecasts Chapter 6

  22. ELEMENTS OF A BUSINESS PLAN (continued) • Operations Plan • Organization of the company • Description of major operations • Analysis of resources needed • Human resource plans Chapter 6

  23. ELEMENTS OF A BUSINESS PLAN (continued) • Marketing Plan • Description of major marketing activities • Description of resources needed • Schedule of marketing activities Chapter 6

  24. ELEMENTS OF A BUSINESS PLAN (continued) • Financial Plans • Start-up costs • Short- and long-term financial needs • Sources of financing • Budgets and financial statements Chapter 6

  25. STEPS IN DEVELOPING THE BUSINESS PLAN • Gather and review information • Develop the “game plan” • Write the plan • Ask an expert to review the plan Chapter 6

  26. FINANCING THE SMALL BUSINESS • Types of financing • Start-up financing - $ to start • Short-term financing - $ for current operations • Long-term financing - $ for capital resources • Sources of financing • Owner-supplied funds • Borrowed funds Banks – Family – Angel Investors Chapter 6

More Related