• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Chapter7
 

Chapter7

on

  • 214 views

 

Statistics

Views

Total Views
214
Views on SlideShare
214
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Chapter7 Chapter7 Presentation Transcript

    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.7©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.7©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Small Business andEntrepreneurship:Economic RocketFuel2LO1 Why do entrepreneurs launch smallbusinesses?LO2 What is the typical entrepreneurialmindset and characteristics?LO3 What are funding options for smallbusiness?LO4 What are the opportunities andthreats facing small businesses?LO5 What are ways to become a businessowner and facilitate success?LO6 What is the size, scope and economiccontribution of small business?
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Entrepreneurship Plays a PositiveRole in U.S. Economy• New business creation increasedsteadily from 2007 to 2009• Interest among teenagers in launchinga business is consistent at 40%• In 2010, U.S. entrepreneurship ratesreached their highest level in 15 years• Job seekers offer hope as job creators3Source: Despite Recession, Youth Remain Interested in Entrepreneurship, Poll Shows, November 17, 2010, Philanthropy News Digest website, http://foundationcenter.org/pnd/news/story.jhtml;jsessionid=R0ZQZFD52NZNLLAQBQ4CGW15AAAACI2F?id=314900002,accessed March 18, 2011, “Jobless Entrepreneurship” Tarnishes Steady Rate of U.S. Start-Up Activity, Kauffman Study Shows, March 7, 2011, Kauffman website, http://www.kauffman.org/newsroom/jobless-entrepreneurship-tarnishes-steady-rate-of-us-startup-activity.aspx, accessed March 18, 2011
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Launching a New Venture:What’s in It For Me?4 Greater Financial Success Independence Flexibility Challenge Survival Opportunity Lost – there are trade-offsBusiness opportunitiesare like buses…there’salways another onecoming.-- Richard Branson,Virgin Enterprise““
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.The Entrepreneur:A Distinctive Profile5
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.New Venture: Living SocialEscapesVideo HereVideo Here6
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Gather Around the Water Cooler:Let’s Talk•7©iStockphoto.com/DNY59• What motivated Maya to start UrbanEscapes?• What entrepreneurial characteristics doyou see in Maya?• How did Maya fund her start up?
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Entrepreneurship:Do You Have What it Takes?• Do you enjoy working?• Do you gamble?• Can you fake it?• Are you good on your feet?8Source: Personality Test for Entrepreneurship Success by Andy Swan, Small Biz Survival website, http://www.smallbizsurvival.com/2008/08/personality-test-for-entrepreneurship.html, postedAugust 4, 2008, accessed April 3, 2011.©iStockphoto.com/Neustockimages
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Roach Coaches Minus theRoaches• Today’s food truck owners aretech-savvy entrepreneurs Build loyal customers viasocial media Kogi BBQ truck has 28,000Twitter followers• Lunch trucks today havegone upscale Korean/Mexican Tacos Gourmet deserts Sustainably harvested fish tacos9Source: “Food Truck Nation,” by Katy McLaughlin, June 5, 2009, The Wall Street Journal website, http://online.wsj.com/article/SB10001424052970204456604574201934018170554.html, accessed June 3, 2010; “How to Open a (Successful) Food Truck,” by Christine Lagorio, May 12, 2010, Inc. website, http://preview.inc.com/guides/2010/05/opening-a-successful-food-truck.html, accessed June 3, 2010.
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Finding the Money:Funding Options for Small Business10 Personal Resources Loans Angel Investors Venture Capital©Colin Anderson/Blend Images/Jupiterimages©Colin Anderson/Blend Images/Jupiterimages
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Peer-to-Peer Lending• A new and unique funding source forstart-ups• Websites bring together borrowersand investors• Both parties benefit financially• Entrepreneurs find this an easiersource for funding with morefavorable terms 11©TheStudioDog/Photodisc/GettyImages
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Small Business Sustainability• Sustainable business practices can savemoney• Many large corporations assess suppliersbased on environmental benchmarks• Sustainable planning:1. Establish a benchmark2. Identify best opportunities3. Develop implementation plans4. Set deadlines5. Keep the plan active12Source: Sustainability Planning for Business Owner by Kelly Spors , May 9, 2010, Small Business Trends website, http://smallbiztrends.com/2010/05/sustainability-planning-for-business-owners.html, accessed April 3, 2011
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Opportunities and Threats for SmallBusiness: A Two-Sided Coin13Threats:• Higher Risk of Failure• Lack of Knowledge andExperience• Too Little Money• Bigger Regulatory Burden• Higher Health Insurance CostsOpportunities:• Market Niches• Personal Customer Service• Lower Overhead Cost• TechnologyOpportunities:• Market Niches• Personal Customer Service• Lower Overhead Cost• Technology
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.New Business Survival Rates14
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Launching Options: Reviewingthe Pros and Cons15
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Making it Happen:Tools for Success16• Use the Small BusinessAdministration• Gain Experience• Learn from Others• Educate Yourself• Write a Business Plan©TheStudioDog/Photodisc/GettyImagesSource: Focus on Success, Not Failure by Rhonda Abrams, May 7, 2004, USA Today website money section, http://www.usatoday.com/money/smallbusiness/columnist/abrams/2004-05-06-success_x.htm.
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.The Business Plan17 Executive Summary Description of Business Marketing Strategies Competitive and IndustryResearch Operating Procedures Personnel Financial Projections Executive Summary Description of Business Marketing Strategies Competitive and IndustryResearch Operating Procedures Personnel Financial ProjectionsSource: Business Plan Basics, U.S. SBA, http://www.sba.gov/starting_business/planning/basic.html, accessed February 15, 2009.©RAGMA IMAGES/Shutterstock.com
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Doomsday: No Rules, No BackupVideo HereVideo Here18
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Gather Around the Water Cooler:Let’s Talk•19©iStockphoto.com/DNY59• What is the risk of starting your ownbusiness?• Are there rules or backup to startingyour own business?• How can entrepreneurs reduce theirrisk?
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Small Business and the Economy:An Outsized Impact20• Creating New Jobs• Fueling Innovation• Vitalizing Inner Cities• In 2008, 99.9% of businessesin the U.S. had less than fewerthan 500 employees• 7% of small business ownersran their business without anyemployees• Small businesses generateabout half the U.S. GDP• Small businesses employ halfof the nation’s privateworkforce©TheStudioDog/Photodisc/GettyImagesSource: “Frequently Asked Questions,” SBA Office of Advocacy, updated September 2009, SBA websitehttp://www.sba.gov/advo/stats/sbfaq.pde, accessed June 3, 2010.
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Accidental Invention• Many great ideas happen by accident• Penicillin was the result of not cleaning upa science workstation• Coca-Cola resulted from efforts to developa headache medicine• Saccharin was discovered from a chemistnot washing his hands“Luck is what happens whenpreparation meets opportunity”~ Seneca 21Source: Top 10 Accidental Inventions, Science Channel website, http://science.discovery.com/brink/top-ten/accidental-inventions/inventions-01.html, accessed March 22, 2011.©haveseen/Shutterstock.com
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Entrepreneurship Around theWorld22Societies need entrepreneurs. While entrepreneurs think theenvironment is worse than 2009, intentions to launch a business havenot declined. People are afraid of losing their jobs and are consideringentrepreneurship Potential entrepreneurs may be more optimistic about their ownability Potential entrepreneurs may be delaying their launchSource: Global Entrepreneurship Monitor 2010 Report by Donna J. Kelley, Niels Bosma, José Ernesto Amorós, College and London School of Economics, file:///C:/Users/Marce/AppData/Local/Temp/GEM%20GLOBAL%20REPORT%202010rev.pdf, published March 2011, accessed March 21, 2011 Global Entrepreneurship Monitor, 2008 Executive Report by Niels Bosma, Zoltan J. Acs, Erkko Autio,Alicia Coduras, and Jonathan Levie, Babson College and London School of Economics, http://www.gemconsortium.org/article.aspx?id=76, published January 15, 2009, accessed February 17, 2009.©BSHStock/ImageSource
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Entrepreneurship RatesAround the World23
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.World EntrepreneurshipVariables• What is the national per-capita income?• What will the entrepreneur need to give up(opportunity costs)?• How high is the risk of failure?• How strongly do the national culture andpolitical environment support business start-ups?24
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Reality TV: Start-up JunkiesVideo HereVideo Here25
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Gather Around the Water Cooler:Let’s Talk•26©iStockphoto.com/DNY59• Ron Wiener, founder and CEO of Earth ClassMail, is a serial entrepreneur. He founded andsold four other businesses before foundingEarth Class mail. What do you think hasmotivated him to do this?• What key entrepreneurial characteristics aptlydescribe Ron Wiener?
    • ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.7©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Looking Back• Why do entrepreneurs launch small businesses?• What is the typical entrepreneurial mindset andcharacteristics?• What are funding options for small business?• What are the opportunities and threats facing smallbusinesses?• What are ways to become a business owner and facilitatesuccess?27