SME Chapter 1
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SME Chapter 1

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SME Chapter 1 SME Chapter 1 Presentation Transcript

  • Entrepreneurs: The Driving Force Behind Small Businesses
  • The Age of the Entrepreneur
    • A new business is born in the U.S. every 11 seconds.
    • Study of influential Americans: THE defining trend of the 21 st century:
    • Entrepreneurship!
    • One of every 25 adults is actively engaged in trying to start a new business.
  • Source: 1999 Global Entrepreneurship Monitor 6.8% Canada 5.4% Israel Percentage of Adult Population Working to Start a New Business Country 8.5% United States 3.4% Italy 3.3% Great Britain 2.2% Germany 2.0% Denmark 1.8% France 1.6% Japan 1.4% Finland
  • The Age of the Entrepreneur
    • Entrepreneurs launch 3.5 to 4.5 million businesses a year in the U.S.
    • Survey of college seniors: 49% of men and 31% of women said they were interested in pursuing entrepreneurship after graduation.
  • What Is an Entrepreneur?
    • A person who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on those opportunities.
  •  
  • Characteristics of Entrepreneurs
    • Desire for responsibility
    • Preference for moderate risk
    • Confidence in their ability to succeed
    • Desire for immediate feedback
    • High level of energy
    • Future orientation
    • Skilled in organization
    • Value achievement over money
  • Source: Yanjelovich Partners and Pitney Bowes.
  • Benefits of Small Business Ownership
    • The opportunity to:
    • gain control over your own destiny
    • make a difference
    • reach your full potential
    • reap unlimited profits
    • contribute to society and to be recognized for your efforts
    • do what you enjoy
  • Drawbacks of Small Business Ownership
    • Uncertainty of income
    • Risk of losing your entire invested capital
  • Drawbacks of Small Business Ownership
    • Uncertainty of income
    • Risk of losing your entire invested capital
    • Long hours and hard work
  • Drawbacks of Small Business Ownership
    • Lower quality of life until the business gets established
    • Uncertainty of income
    • Risk of losing your entire invested capital
    • Long hours and hard work
  •  
  • Drawbacks of Small Business Ownership
    • High levels of stress
    • Complete responsibility
    • Discouragement
    • Uncertainty of income
    • Risk of losing your entire invested capital
    • Long hours and hard work
    • Lower quality of life until the business gets established
  • Feeding the Entrepreneurial Fire
    • Entrepreneurs as heroes
    • Entrepreneurial education
    • Economic and demographic factors
    • Shift to a service economy
  • Feeding the Entrepreneurial Fire
    • Technological advancements
    • Independent lifestyles
    • E-Commerce and the World Wide Web
    • International Opportunities
  • Trends in Entrepreneurship
    • Young entrepreneurs
    • Women
  •  
    • Minority enterprises
    • Immigrant entrepreneurs
    • Part-time entrepreneurs
    • Home-based businesses
    Trends in Entrepreneurship
    • Young entrepreneurs
    • Women
  • Trends in Entrepreneurship
    • Family businesses
    • Copreneurs
    • Corporate castoffs
    • Corporate dropouts
  • A Profile of Small Business by Industry
  • Small Businesses...
    • make up 98.5% of all the businesses in the U.S.
    • employ 52% of the nation's private sector workforce.
    • create more jobs than big businesses.
    • lead the way in training workers for jobs.
  • Small Businesses...
    • produce 51% of the nation's GDP.
    • account for 47% of business sales.
    • create 4X more innovations per R & D dollar spent than medium-sized firms and 24X as many as large companies.
  •  
  • The Small Business Failure Record
    • 24% of new businesses fail after two years.
    • 51% fail within four years.
    • 60% fail within six years.
  • Nine Deadly Mistakes of Entrepreneurship
    • Management incompetence
    • Lack of experience
    • Undercapitalization
    • Poor cash management
    • Lack of strategic management
  • Nine Deadly Mistakes of Entrepreneurship
    • Weak marketing effort
    • Uncontrolled growth
    • Poor location
    • Lack of inventory control
    • Inability to make the “entrepreneurial transition”
  • Putting Failure Into Perspective
    • Failure is a natural part of the creative process.
    • Failures are simply stepping stones along the path to success.
    • The “secret” to success is the ability to fail intelligently , learning why you failed so that you can avoid making the same mistake again.
  • How to Avoid the Pitfalls
    • Know your business in depth.
    • Prepare a business plan.
    • Manage financial resources.
    • Understand financial statements.
    • Learn to manage people effectively.
    • Set your business apart from the competition.
    • Keep in tune with yourself.