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SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
SME Chapter 1
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SME Chapter 1

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  • 1. Entrepreneurs: The Driving Force Behind Small Businesses
  • 2. The Age of the Entrepreneur <ul><li>A new business is born in the U.S. every 11 seconds. </li></ul><ul><li>Study of influential Americans: THE defining trend of the 21 st century: </li></ul><ul><li>Entrepreneurship! </li></ul><ul><li>One of every 25 adults is actively engaged in trying to start a new business. </li></ul>
  • 3. 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
  • 4. The Age of the Entrepreneur <ul><li>Entrepreneurs launch 3.5 to 4.5 million businesses a year in the U.S. </li></ul><ul><li>Survey of college seniors: 49% of men and 31% of women said they were interested in pursuing entrepreneurship after graduation. </li></ul>
  • 5. What Is an Entrepreneur? <ul><li>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. </li></ul>
  • 6.  
  • 7. Characteristics of Entrepreneurs <ul><li>Desire for responsibility </li></ul><ul><li>Preference for moderate risk </li></ul><ul><li>Confidence in their ability to succeed </li></ul><ul><li>Desire for immediate feedback </li></ul><ul><li>High level of energy </li></ul><ul><li>Future orientation </li></ul><ul><li>Skilled in organization </li></ul><ul><li>Value achievement over money </li></ul>
  • 8. Source: Yanjelovich Partners and Pitney Bowes.
  • 9. Benefits of Small Business Ownership <ul><li>The opportunity to: </li></ul><ul><li>gain control over your own destiny </li></ul><ul><li>make a difference </li></ul><ul><li>reach your full potential </li></ul><ul><li>reap unlimited profits </li></ul><ul><li>contribute to society and to be recognized for your efforts </li></ul><ul><li>do what you enjoy </li></ul>
  • 10. Drawbacks of Small Business Ownership <ul><li>Uncertainty of income </li></ul><ul><li>Risk of losing your entire invested capital </li></ul>
  • 11. Drawbacks of Small Business Ownership <ul><li>Uncertainty of income </li></ul><ul><li>Risk of losing your entire invested capital </li></ul><ul><li>Long hours and hard work </li></ul>
  • 12. Drawbacks of Small Business Ownership <ul><li>Lower quality of life until the business gets established </li></ul><ul><li>Uncertainty of income </li></ul><ul><li>Risk of losing your entire invested capital </li></ul><ul><li>Long hours and hard work </li></ul>
  • 13.  
  • 14. Drawbacks of Small Business Ownership <ul><li>High levels of stress </li></ul><ul><li>Complete responsibility </li></ul><ul><li>Discouragement </li></ul><ul><li>Uncertainty of income </li></ul><ul><li>Risk of losing your entire invested capital </li></ul><ul><li>Long hours and hard work </li></ul><ul><li>Lower quality of life until the business gets established </li></ul>
  • 15. Feeding the Entrepreneurial Fire <ul><li>Entrepreneurs as heroes </li></ul><ul><li>Entrepreneurial education </li></ul><ul><li>Economic and demographic factors </li></ul><ul><li>Shift to a service economy </li></ul>
  • 16. Feeding the Entrepreneurial Fire <ul><li>Technological advancements </li></ul><ul><li>Independent lifestyles </li></ul><ul><li>E-Commerce and the World Wide Web </li></ul><ul><li>International Opportunities </li></ul>
  • 17. Trends in Entrepreneurship <ul><li>Young entrepreneurs </li></ul><ul><li>Women </li></ul>
  • 18.  
  • 19. <ul><li>Minority enterprises </li></ul><ul><li>Immigrant entrepreneurs </li></ul><ul><li>Part-time entrepreneurs </li></ul><ul><li>Home-based businesses </li></ul>Trends in Entrepreneurship <ul><li>Young entrepreneurs </li></ul><ul><li>Women </li></ul>
  • 20. Trends in Entrepreneurship <ul><li>Family businesses </li></ul><ul><li>Copreneurs </li></ul><ul><li>Corporate castoffs </li></ul><ul><li>Corporate dropouts </li></ul>
  • 21. A Profile of Small Business by Industry
  • 22. Small Businesses... <ul><li>make up 98.5% of all the businesses in the U.S. </li></ul><ul><li>employ 52% of the nation's private sector workforce. </li></ul><ul><li>create more jobs than big businesses. </li></ul><ul><li>lead the way in training workers for jobs. </li></ul>
  • 23. Small Businesses... <ul><li>produce 51% of the nation's GDP. </li></ul><ul><li>account for 47% of business sales. </li></ul><ul><li>create 4X more innovations per R & D dollar spent than medium-sized firms and 24X as many as large companies. </li></ul>
  • 24.  
  • 25. The Small Business Failure Record <ul><li>24% of new businesses fail after two years. </li></ul><ul><li>51% fail within four years. </li></ul><ul><li>60% fail within six years. </li></ul>
  • 26. Nine Deadly Mistakes of Entrepreneurship <ul><li>Management incompetence </li></ul><ul><li>Lack of experience </li></ul><ul><li>Undercapitalization </li></ul><ul><li>Poor cash management </li></ul><ul><li>Lack of strategic management </li></ul>
  • 27. Nine Deadly Mistakes of Entrepreneurship <ul><li>Weak marketing effort </li></ul><ul><li>Uncontrolled growth </li></ul><ul><li>Poor location </li></ul><ul><li>Lack of inventory control </li></ul><ul><li>Inability to make the “entrepreneurial transition” </li></ul>
  • 28. Putting Failure Into Perspective <ul><li>Failure is a natural part of the creative process. </li></ul><ul><li>Failures are simply stepping stones along the path to success. </li></ul><ul><li>The “secret” to success is the ability to fail intelligently , learning why you failed so that you can avoid making the same mistake again. </li></ul>
  • 29. How to Avoid the Pitfalls <ul><li>Know your business in depth. </li></ul><ul><li>Prepare a business plan. </li></ul><ul><li>Manage financial resources. </li></ul><ul><li>Understand financial statements. </li></ul><ul><li>Learn to manage people effectively. </li></ul><ul><li>Set your business apart from the competition. </li></ul><ul><li>Keep in tune with yourself. </li></ul>

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