GENN001 Spring 2013 Session #7 Entreprenuership

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GENN001 Spring 2013 Session #7 Entreprenuership

  1. 1. Entrepreneurs: The DrivingForce Behind Small Business Lecture: 7 1-1
  2. 2. The World of the Entrepreneur  In the U.S., entrepreneurs start more than 6 million businesses a year!  Global Entrepreneurship Monitor (GEM)  Approximately 8% of the U.S. population is actively involved in entrepreneurial activity  Nearly 11% of people in 49 GEM countries studied are involved in starting a new business
  3. 3. What is an Entrepreneur? One 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 them
  4. 4. An entrepreneur is someone who is willingto work 16 hours a day to keep from working8 hours a day for someone else!
  5. 5. Characteristics of Entrepreneurs Survey: 61% of adults in the U.S. would like to start their own business  Willingness to take initiative  Preference for moderate risk  Confidence in their ability to succeed  Self-reliance  Perseverance1  Desire for immediate feedback1Perseverance is commitment, hard work, patience, endurance
  6. 6. Characteristics of Entrepreneurs  High level of energy  Competitiveness  Future orientation  Serial entrepreneurs  Skilled at organizing  Value achievement over money
  7. 7. Entrepreneurship One characteristic of entrepreneurs stands out: Diversity! Anyone – regardless of age, race, gender, color, national origin, or any other characteristic – can become an entrepreneur (although not everyone should)
  8. 8. How to Spot Entrepreneurial Opportunities  Creativity vs. Innovation  Creativity – the ability to develop new ideas and to discover new ways of looking at problems and opportunities  Innovation – the ability to apply creative solutions to problems and opportunities to enhance or to enrich people’s lives
  9. 9. How to Spot Entrepreneurial Opportunities  Monitor trends and exploit them early on  Take a different approach to an existing market  Put a new twist on an old idea
  10. 10. How to Spot Entrepreneurial Opportunities  Look for creative ways to use existing resources  Realize that others have the same problem that you do  Notice what is missing
  11. 11. Benefits of Small Business Ownership The opportunity to:  Control your own destiny  Make a difference  Reach your full potential  Reap impressive profits  Contribute to society and to be recognized for your efforts  Do what you enjoy and to have fun at it
  12. 12. Drawbacks of Small Business Ownership  Uncertainty of income  Risk of losing your entire investment  Long hours and hard work
  13. 13. Small Business Owners Work Week Number of Hours Worked per Week 1 to 39 hours 10% More than 70 hours 20% 40 to 49 hours 29%60 to 69 hours 19% 50 to 59 hours 22% Average workweek = 54 hours
  14. 14. Drawbacks of Small Business Ownership  Uncertainty of income  Risk of losing your entire investment  Long hours and hard work  Lower quality of life until the business gets established
  15. 15. Drawbacks of Small Business Ownership  Uncertainty of income  Risk of losing your entire investment  Long hours and hard work  Lower quality of life until the business gets established  High levels of stress  Complete responsibility  Discouragement
  16. 16. The Cultural Diversity of Entrepreneurship Young entrepreneurs
  17. 17. Entrepreneurial Activity by Age Group
  18. 18. The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs
  19. 19. Entrepreneurial Activity by Gender
  20. 20. The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs Minority-owned enterprises
  21. 21. Minority Business Ownership in the United States9080706050 East40 West30 North20100 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
  22. 22. The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs
  23. 23. Small Business by Industry
  24. 24. Small Businesses...  Employ 50.2% of the nation’s private sector workforce  Pay 45% of total private payroll  Create more jobs than big businesses  SBA estimates they create 79% of all net new jobs in the U.S.
  25. 25. Small Businesses...  Are leaders in offering training and advancement opportunities to workers  Provide 67% of workers with their first jobs  Account for 47% of business sales  Key role in innovation:  Produce 13 times more patents per employees than large companies
  26. 26. Putting Failure into Perspective About 54% of new companies fail within 4 years Entrepreneurs are not affected by the prospect of failure Failure – a natural part of the creative process Successful entrepreneurs learn to fail intelligently
  27. 27. Avoiding the Pitfalls of Small BusinessFailure  Know your business in depth  Prepare a business plan  Manage financial resources  Understand financial statements
  28. 28. Avoiding the Pitfalls of Small BusinessFailure  Learn to manage people effectively  Set your business apart from the competition  Maintain a positive attitude

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