This document discusses entrepreneurship and small and medium enterprises (SMEs). It defines entrepreneurs as those who have new ideas and take responsibility for their actions, often focusing on innovation. SMEs help create new jobs and economic opportunities. The document provides examples of successful entrepreneurs and discusses support for SMEs in Puerto Rico, including government incentives and health insurance options. However, about 8 out of 10 SMEs fail within the first 5 years, often due to a lack of planning, information, or oversaturation of the market.

1. Edwin R. Cuevas Rivera 802-03-1853 INTD 3355 Prof. Liz Pagán Entrepreneurship in SMEs.

2. Introduction Entrepreneur – someone who has new ideas and takes full responsibility for his action. Focus on innovation: New products (Velcro) Current products (World Wide Web) SMEs – Small and medium enterprises Help to create new employment opportunities

3. Entrepreneur Visionary, connecting the need into something useful: In the house On the job Economic situation Local community Example: A man while removing cockleburs (cadillos) from pants. Noticed how they did not damage his pants, he invisioned a material that could have this same effect. This lead to studies for a span of nine years producing what is known as Velcro 1 . 1. Romaguera, J. (2006). Chispa Empresarial: Reconociendo y haciendo realidad las oportunidades empresariales. Puerto Rico: International Entrepreneurship Institute.

4. Entrepeneur Example: People who have used the Web which already existed and created services of there own. Shawn Fanning – Napster Sergey Brin and Larry Page – Google.com It is estimated that 61% of U.S. Colleges and Universities have at least one course in entrepreneurship. (Bygrave,2004) Many books know at days discuss the step by step process of being an entrepreneur and how to create your own SMEs.

5. SMEs In the U.S.A a small and medium enterprise is that which has less than 500 employees. But in Puerto Rico they defined as those having less than $5,000,000 anual sales. The SMEs have produced approximately 837,000 jobs in Puerto Rico.

6. SMEs in Puerto Rico The CUD 1 is proposing a law that will give the SMEs government incentives, as jsut it those to the industrial sector. (Díaz,2008) MCS 2 has created a medical insurance coverage exclusively for the SMEs. (González,2007) CCE 3 will work to grant or deny any SMEs permit, that is not in need of any public trial,in just 30 days. Centro Unido de Detallistas Medical Card Systems Compañía de Comercio y Exportación

7. SMEs in Puerto Rico In a ratio of 8/10 SMEs fail within the first 5 years. 50% are bankrupt in the 1 st year 90% are bankrupt before there 5 th year Some of the causes are: Lack of information Low production Unplanned growth process Over saturation of the market Technological advances, etc.

8. Methodology The main source of the information was secondary data: Library books Newspaper archives Old notebooks Books used in past courses As well as Internet searches to refresh my memory.

9. Conclusion During the research process I found: Hundreds of book from the 1960’s – today. Many books state basically the same information, some more indepth. The information about entrepreneurship courses is true, since in ADEM they have a certificate on Entrepreneurship To me the set back is the time, since this is a extensive process and there are a lot of stages to get the feeling on the subject. But this was a subject that I feel comfortable with and when you learn about it, it drags you in.

10. Suggestion Before starting your business make a business plan spanning five years, and stick to it. After those five years make a new one and so on.

11. References Bannock, G. (2005). The Economics and Management of Small Business . London; New York: Routledge. Bygrave, W., & Zacharakis, A. (2004). The portable MBA in entrepreneurship .Chicago: Irwin. Díaz, M. (2003, agosto 1). Agilidad en la tramitación de permisos para Pymes. El Nuevo Día , Retrieved April 29, 2008, from http://www.adendi.com Díaz, M. (2008, abril 22). Buscan crear permiso global para las pymes. El Nuevo Día , Retrieved April 29, 2008, from http :// www.adendi.com Díaz, M. (2008, enero 4). Beneficios para las pymes. El Nuevo Día , Retrieved April 29, 2008, from http :// www.adendi.com

12. References Feliciano, J. (2008, marzo 17). Las pequeñas empresas necesitan su impulso. El Nuevo Día , Retrieved April 29, 2008, from http :// www.adendi.com González, J. (2007, noviembre 11). Alternativa de seguro para las Pymes. El Nuevo Día , Retrieved April 29, 2008, from http :// www.adendi.com Lobato, M. (1997). La necesidad de la sociología económica: una interpretación de las políticas de promoción y ayuda a pequeñas empresas. Puerto Rico: Recinto Universitario de Río Piedras. Megginson, L., Byrd, M., & Megginson, W. (2006). Small Business Management: An Entrepreneur’s Guidebook . Boston: McGraw-Hill/Irwin. Romaguera, J. (2006). Chispa Empresarial: Reconociendo y haciendo realidad las oportunidades empresariales . Puerto Rico: International Entrepreneurship Institute.