This chapter discusses entrepreneurship as an alternative career path. It defines entrepreneurs as individuals who seek profitable opportunities and take risks to start businesses. The chapter identifies different types of entrepreneurs and explains why people choose entrepreneurship. Factors like globalization, education, technology, and demographic trends have created more opportunities for entrepreneurs. Successful entrepreneurs tend to be visionary, energetic, self-confident, and able to tolerate risk and ambiguity. The chapter outlines the process of starting a new business, including selecting an idea, writing a business plan, finding financing, and getting government support. It also discusses buying existing businesses and promoting intrapreneurship within companies.

1. Chapter 6
Starting Y Own Business: The
our
Entrepreneurship Alternative

2. Learning Goals
1 Define the term entrepreneur and 5 Identify personality traits that
distinguish among entrepreneurs, small- typically characterize successful
business owners, and managers. entrepreneurs.
2 Identify the different types of 6 Summarize the process of starting a
entrepreneurs. new venture.
3 Explain why people choose to become 7 Explain how organizations promote
entrepreneurs. intrapreneurship.
4 Discuss factors that support and expand
opportunities for entrepreneurs.

3. W is Entrepreneurship?
hat
s An entrepreneur is a person who seeks a
profitable opportunity and takes the necessary
risks to set up and operate a business.
s Differ from many small-business owners in their
strong desire to make their business grow.
s Differ from managers through their overriding
responsibility to use the resources of the
organization to accomplish their goals.
s Willing to take risks.

4. Categories of Entrepreneurs
s Classic Entrepreneurs
s Serial Entrepreneurs
s Social Entrepreneurs

5. Entrepreneurship as a Career
s More than 11% of Americans run their own
businesses.
s In an average month, Americans start
approximately 465,000 new businesses.
s The past two decades have shown a heightened
interest in entrepreneurial careers.
s People choose entrepreneurship for many
reasons:
s Dissatisfaction with traditional work
s Their ideas fulfill customer needs

6. W People Become Entrepreneurs
hy

7. W Entrepreneurship?
hy
s Being Your Own Boss
s Self-management is the motivation that drives
many entrepreneurs.
s Financial Success
s Entrepreneurs are wealth creators.
s Job Security
s Over the past ten years, large companies have
eliminated more jobs than they have created.
s Quality of Life
s Starting a business gives the founder some choice
over when, where, and how to work.

8. The Environment for Entrepreneurship

9. Globalization
s The rapid globalization of business has created many
opportunities for entrepreneurs.

10. Education / IT / Demographic and
Economic Trends
s Education
s 100 U.S. colleges and universities offer entrepreneurship majors.
s Universities are helping students launch businesses.
s Many programs teach entrepreneurship to young people.
s Information Technology
s Technology has given entrepreneurs tools that help them
compete.
s Entrepreneurs have used information technology to revolutionize
industries.
s Demographic and Economic Trends
s Aging of U.S. population.
s Emergence of Hispanics as nation’s largest ethnic group.
s Growth of two-income families.

11. Characteristics of Entrepreneurs

12. Entrepreneurial Characteristics
s Vision - entrepreneurs begin with an overall idea for how to
make their business ideas successful
s High Energy Level - a willingness to work hard
s Need to Achieve - entrepreneurs work hard because they
want to excel
s Self-Confidence - fearlessness in the face of difficult odds
s Tolerance for Failure - entrepreneurs are not easily
discouraged
s Creativity - entrepreneurs devise innovative ways to overcome
difficult problems and situations
s Tolerance for Ambiguity - entrepreneurs take in stride
uncertainties
s Internal Locus of Control - entrepreneurs believe they can
control their own fates

13. Entrepreneurial Quiz

14. Starting a New Venture
s Selecting a Business Idea
s Find something you love to do and are good at
doing
s Can your idea satisfy a need in the marketplace?
s Entrepreneurs must be sure that the idea
they choose has interest in the marketplace.
s Business Plan

15. Buying an Existing Business
s Advantages:
s Established customers
s Deal with familiar suppliers
s Good/service known in marketplace
s Necessary permits and licenses are
already secured
s Financing may be easier
s Seller financing

16. Creating a Business Plan
s 58% of the most recent Inc. CEOs did not create a
formal written plan.
s But business plans do help entrepreneurs prepare
enough resources and stay focused on key
objectives.

17. Finding Financing
s Debt Financing
s Credit Cards
s Family and Friends
s Bank Loans (SBA backed)
s Equity Financing
s Venture Capitalists
s Angel Investors

18. Government Support for New Ventures
s Business Incubators are a key way
government supports new ventures
s Clean Energy Incubator (CEI)
s Enterprise Zones
s Encourage entrepreneurship in
specific geographic areas
s Government Legislation
s Immigration Act of 1990

19. Intrapreneurship
s Promoting innovation within
organizational structures
s An idea to promote creativity
s Companies promote in a variety
of ways
s Skunkworks
s Pacing Programs