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A new business is born every 11 seconds in the United States Entrepreneurship will be the defining economic issue of the 21st Century One in 12 Americans is actively involved in trying to launch a new business.
Businesses
There are over 25 million small businesses; the number continues to grow 2% annually. New business incorporations have averaged over 600,000 per year over the past decade. Small business (< 500 employees) employ 53% of the private work force and account for 47% of sales and 51% of private sector gross domestic product (GDP)
Entrepreneurial firms make two indispensable contributions to the U.S. economy: First, they are an integral part of the renewal process that pervades and defines market economies. Second, they are the essential mechanism by which millions enter the economic and social mainstream of American society.
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A gazelle is a business establishment with at least 20% sales growth every year (for five years), starting with a base of at least $100,000.
Gazelles - Innovation
Gazelles are leaders in innovation. Gazelles produce twice as many product innovations per employee as do larger firms.
The common myth is that 85% of all firms fail in the first year. The more accurate statement is that about half of all start-ups last between 5 and 7 years.
Entrepreneurial Opportunities
SelfSelf-Employment, 1967-2007 1967Thousands 14,000 Agriculture 12,000 NonNon-agriculture 10,000 8,127 8,000 2,136 6,000 4,000 5,991 2,000 5,783 1,646 7,881 8,971 7,428 10,096 9,327 1,447 10,490 1,518 11,615 1,519
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.
Characteristics of Entrepreneurs
Desire for responsibility Preference for moderate risk Confidence in their ability to succeed Desire for immediate feedback High level of energy Future orientation Skilled at organizing Value achievement over money
igh degree of independencefreedom from constraints Get to use a variety of skills and talents Freedom to make decisions Accountable to only yourself Opportunity to tackle challenges Feeling of achievement and pride Potential for greater financial rewards
Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyles E-Commerce and the World Wide Web International opportunities
Must be comfortable with change and uncertainty Must make a bewildering number of decisions Need many different skills and talents May face tough economic choices Must be comfortable with taking risks Must be comfortable with the potential for failure
Young entrepreneurs Women Minority-owned enterprises Immigrant entrepreneurs Family businesses Corporate castoffs Corporate dropouts Part-time entrepreneurs Home-based businesses
Management incompetence Lack of experience Poor financial control Failure to develop a strategic plan Uncontrolled growth
Businesses Owners
Retail 20.5%
The opportunity to: create your own destiny make a difference reach your full potential reap unlimited profits contribute to society and be recognized for your efforts do what you enjoy and have fun at it
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
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24% of new businesses fail after two years. 51% fail within four years. 63% fail within six years.
# of Years in Business
Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Like what you do
Small Businesses
Produce 51% of the nation's private GDP. Account for 47% of business sales. Create 4X more innovations per R & D dollar spent than medium-size firms and 24X as many as large companies.
Small Businesses
Create more jobs than big businesses. Are leaders in offering training and advancement opportunities to workers. Employ 53% of the nation's private sector workforce. Make up 99% of all businesses in the United States.
Entrepreneur is derived from the French entreprendre, meaning to undertake. Although no single definition of entrepreneur exists and no one profile can represent todays entrepreneur, research is providing an increasingly sharper focus on the subject.
Definition of an Entrepreneur
An entrepreneur is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable, marketable ideas; adds value through time, effort, money or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts.
Entrepreneur
Manager, administrator
They Positively Frame Business Challenges They Understand That the Success of their Business Starts With Themselves They Passionately Seek New Opportunities They Pursue Opportunities With Enormous Discipline
Entrepreneurs Pursue Only the Very Best Opportunities and Avoid Exhausting Themselves By Chasing Every Option Entrepreneurs Focus On Execution Entrepreneurs Create and Sustain Networks of Relationships Rather Than Going It Alone Entrepreneurs Get People Excited and Keep People Excited About Their Businesses and Their Ideas
Myth 1:
Entrepreneurs Are Doers, Not Thinkers Entrepreneurs Are Born, Not Made Entrepreneurs Are Always Inventors Entrepreneurs Are Academic and Social Misfits Entrepreneurs Must Fit the Profile
Myth 5:
Myth 10:
Recognize opportunities where others see chaos or confusion Are aggressive catalysts for change within the marketplace Challenge the unknown and continuously create the future
An Integrated Definition
Entrepreneurship
The
Focuses on the opportunity aspect of venture development developmentthe search for idea sources, the development of concepts, and the implementation of venture opportunities.