Bus106 wk6 ch6 entrepreneurship

Week 6, Chapter 6Entrepreneurship & Starting a Small Business

Learning Objectives

Entrepreneurship: accepting the challenge of starting and running a business.
The word entrepreneur originates from the French word entreprendre, which means “to undertake.”
In a business context, it means to start a business.

Entrepreneurship differs from small business in four ways:

Why People Take the Entrepreneurial Challenge

What Does It Take to Be an Entrepreneur?

Figure 6.1
Advice for Potential Entrepreneurs

Why Women Leave Jobs in Big Companies to Start a Business
Source: FSB, March 2001

Entrepreneurial Teams - a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

Micropreneurs and Home-Based Businesses

Reasons for the growth of home-based businesses

Why People Start Their Own Businesses
Source: BFIB/VISA Card Primer

Home-based Businesses: Challenges

Most Common Types ofHome-Based Businesses
Source: Independent Insurance Agents of America

Entrepreneurship Within Firms

Incubators
Entrepreneurs and new start-ups can also find assistance from incubators.
provide hands-on management assistance, education, information, technical and vital business support services, networking resources, financial advice, as well as advice on where to go to seek financial assistance.

Starting a Small Business
Definition: business establishment
Has at least one paid employee
annual sales revenue of $30,000, or is incorporated
has filed a federal corporate income tax return at least once in the previous three years.

Importance of Small Businesses
Nearly all small businesses are Canadian-owned and -managed.
This is in contrast to large businesses, of which many are foreign-owned and -managed.
Small business thus plays a major role in helping to maintain the Canadian identity and Canadian economic independence.

Number of Business Establishments by Sector and Firm Size (Number of Employees)
Figure 6.3

Small-Business Success and Failure
Figure 6.4

Small-Business Success and Failure
Figure 6.5

Ways to get into your first business venture:

Managing a Small Business - the functions of business in a small-business setting

Business Plan - A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

Sample Outline of a Business Plan
PLAN

Getting Money to Fund a Small Business
Figure 6.7

Getting Money to Fund a Small Business
Angel Investors - private individuals who invest their own money in potentially hot new companies before they go public.
Angel investors usually target their support (generally $20,000 to $500,000) to pre-start-up and early-stage companies.

Capital Sources of Successful Entrepreneurs
SOURCE: FSB, March 2001

Knowing Your Customers
Market
People with unsatisfied wants and needs who have both the resources and the willingness to buy.
One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to their ever-changing needs.

Managing Employees
Hiring, training, and motivating employees are critical.
It is not easy to find good, qualified help when you offer less money and fewer benefits.

Small Business & International Prospects

International Small Business

Chapter Summary

Homework
review
for midterm
Chapters 1-6(25%)
39

Bus106 wk6 ch6 entrepreneurship

by Bhupesh Shah on Nov 02, 2010

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