Very informative

1. Small Business
Management, 18e
Longenecker/Petty/Palich/Hoy
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2. The Entrepreneurial Life
Chapter 1
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3. Learning Goals:
 Explain the importance of small
business and entrepreneurship in our
society
 Distinguish between the terms small
business and entrepreneurial
society.
 Explain the basic characteristics of
entrepreneurs and describe different
kinds of entrepreneurship.
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product or service or otherwise on a password-protected website for classroom use.

4. Learning Goals (cont.)
 Discuss the importance of
understanding your motivations and
perceptions related to owning a small
business.
 Describe the five potential
advantages of small entrepreneurial
companies over large firms.
 Explain the concept of an
entrepreneurial legacy and its
challenges.
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product or service or otherwise on a password-protected website for classroom use.

5. 1-1 Small Size, Great
Significance
 Small Businesses:
 Include 27.8 million businesses in the
U.S.
 Represent 99.7% of all firms.
 Employ 49% of employees in the private
sector.
 Hire 43% of high-tech employees.
 Represent 97% of all exporters.
 Obtain college degrees.
 Provide increased business ownership
opportunities for veterans.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

6. 1-2 What is a Small
Business?
Small in size relative to larger
competitors (fewer than 500
employees)
Attractive small firms offer
substantial financial rewards
Microbusinesses provide modest
returns
Localized business operations (except
marketing)
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

7. 1-2 What is a Small
Business? (cont.)
Financing supplied by one person or
small group
Has the potential to become more
than a “one-person show”
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product or service or otherwise on a password-protected website for classroom use.

8. 1-2 What is an
Entrepreneurial Opportunity?
 Entrepreneurial Opportunity
 An economically attractive and timely
opportunity that creates value for
interested buyers or end users.
 Bootstrapping
 Doing more with less in terms of
resources invested in a business, and,
where possible, controlling the resources
without owning them.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

9. 1-2 What is an
Entrepreneurial Opportunity?
 Success Stories
 Kelly’s Delights (Hewitt, TX)
 Blank Label (Boston, MA)
 Hughes Group, LLC (Tacoma, WA)
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

10. 1-2 How to Fail as an
Entrepreneur
Overestimate what you can do
Lack an understanding of the market
Hire mediocre people
Fail to be a team player, which is
usually the result of taking oneself too
seriously
Be a domineering manager
Fail to share ownership in the
business in an equitable way
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

11. 1-3 Entrepreneurial Qualities
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12. 1-3 Varieties of Entrepreneurship
 Founder (“Pure” Entrepreneur)
 A person who brings a new firm into
existence
 “Second Stage” Entrepreneur
 An administrative entrepreneur who
oversees the operations of an ongoing
business
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

13. 1-3 Varieties of Entrepreneurship
(cont.)
 Franchisee
 An entrepreneur whose power is limited
by the contractual relationship with a
franchising organization
 Entrepreneurial Team
 Two or more people working together as
entrepreneurs.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

14. 1-3 Varieties of Entrepreneurship
(cont.)
 Social Entrepreneurship
 An entrepreneurial activity whose goal is
to find innovative solutions to society’s
most pressing needs, problems, and
opportunities.
 Social Entrepreneur
 Seeks ways to solve societal and
environmental problems that incorporate
the triple bottom line of people, profits,
and the planet.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

15. 1-3 Women Entrepreneurs
 More Women Entrepreneurs
 Nearly 9 million privately held women-
owned firms in the U.S.
 Only businesses provided a net increase
in employment between 1997-2013
 Movement of women into healthcare and
educational services
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

16. 1-3 Women Entrepreneurs
 Problems Facing Women
Entrepreneurs
 Lack of available mentors and advisors
 Lack of financing
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

17. 1-3 Think and Act Like an
Entrepreneur
 A successful entrepreneur:
 Is intentional in your goals.
 Seeks opportunities that have growth
potential.
 Is challenged personally.
 Dreams big.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

18. 1-4 Motivations for Owning a
Business
 Being an entrepreneur:
 Is extremely challenging.
 Takes undying love and passion to keep
going.
 Can be passed down within a family.
 Can help make the world a better place.
 Can make meaning in your life.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

19. Is Owning a Small Business Right
for You?
Am I passionate about my product or
service?
What is my tolerance for risk?
Am I effective in making decisions?
Am I willing to take on numerous
responsibilities?
Will I be able to avoid burnout?
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

20. Why People Become Entrepreneurs
 Reluctant Entrepreneur
 A person who becomes an entrepreneur
as a result of some severe hardship.
 Corporate Refugee
 A person who becomes an entrepreneur
to escape an undesirable situation.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

21. 1–21
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website for classroom use.
1.2 Entrepreneurial Motivations

22. 1–22
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website for classroom use.
1.3 Understanding Your Business Paradigm

23. © 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or
otherwise on a password-protected website for classroom use.
1–23
Customer
Focus
Quality
Performance
Innovation and
Globalization
Integrity and
Responsibility
Niche
Markets
Competitive
Advantages of
Entrepreneurial
Firms
The Competitive Edge of
Entrepreneurs

24. 1–24
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website for classroom use.
Resources
Every small business owner should take advantage of the following
websites:
• U.S. Small Business Administration: www.sba.gov
• National Federation of Independent Business: www.nfib.com
• Global Entrepreneurship Monitor: http://gemconsortium.org/docs
• Marion Ewing Kauffman Foundation and the U.S. Commerce
Department: www.entrepreneurship.org
• SCORE, a network of more than 360 offices nationwide where
veteran small business executives offer free confidential advice
and mentoring: www.score.org

25. Building an Entrepreneurial Legacy
 Looking Back at an Entrepreneurial
Life
 Proper values and actions lead to a good
exit.
 Evaluating accomplishments.
 Winning the Wrong Game
 The nature of the entrepreneurial
endeavor reflects personal goals and
values.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

26. Building an Entrepreneurial Legacy
 Crafting a Worthy Entrepreneurial
Legacy
 The tangible items and intangible
qualities passed to both heirs and
society.
 Satisfaction and Fulfillment
 Achieving balance with what I want to
do.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.

27. Key Terms
attractive small firm
bootstrapping
corporate refugee
entrepreneur
entrepreneur personality
entrepreneurial legacy
entrepreneurial opportunity
entrepreneurial team
founder
franchisee
high-potential venture
(gazelle)
lifestyle business
manager personality
mentor
microbusiness
microloans
niche market
paradigm shift
reluctant entrepreneur
small business
social entrepreneurship
technician personality
1–27
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on
a password-protected website for classroom use.