Professional Documents
Culture Documents
Entrepreneurship
and Starting a
Small Business
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Six
LEARNING GOALS
6-2
Chapter Six
LEARNING GOALS
6-3
Profile
JAY-Z
Roc Nation
6-4
The Age of the
Entrepreneur
WHAT is ENTREPRENEURSHIP?
• Entrepreneurship --
Accepting the risk of
starting and running a
business.
6-5
The Job-Creating
Power of
Entrepreneurship NOTABLE ENTREPRENEURS
in the U.S.
6-6
SUCCESS KNOWS NO AGE
(Spotlight on Small Business)
6-8
YOU’RE NEVER TOO OLD to be
an ENTREPRENEUR EITHER!
• The highest rate of
entrepreneurship activity is
in the 55-64 age group!
• Since 1996, older
Americans have opened
businesses at a higher rate
than 20-34 year olds.
• Older entrepreneurs have
greater experience and
more financial resources.
Source: U.S. News and World Report, October 2010.
6-9
Why People
Take the
Entrepreneurial
Challenge
WHY TAKE the RISK?
LG1
• Opportunity
• Profit
• Independence
• Challenge
6-10
Why People
Take the
Entrepreneurial WHAT DOES IT TAKE to be an
Challenge
LG1 ENTREPRENEUR?
• Self-directed
• Self-nurturing
• Action-oriented
• Highly energetic
• Tolerant of uncertainty
6-11
Why People
Take the
Entrepreneurial FIVE STEPS to STARTING YOUR
Challenge
LG1 BUSINESS in SCHOOL
6-12
Turning Your
Passion and
Problems into An IDEA is a
GOOD OPPORTUNITY IF…
Opportunities
LG1
6-13
Entrepreneurial
Teams ENTREPRENEURIAL TEAMS
LG1
• Entrepreneurial team -- A
group of experienced people
from different areas of
business who join to form a
managerial team with the skills
to develop, make and market a
new product.
• An entrepreneurial team
(Steve Jobs, Steve Wozniak
and Mike Markkula) was key
to Apple’s success.
6-14
Micropreneurs
and Home-Based
Businesses
MICROPRENEURS
LG1
6-20
Web-Based
Businesses AFFILIATE MARKETING
LG1
6-21
Web-Based
Businesses BOOSTING YOUR BUSINESS’S
LG1 ONLINE PRESENCE
• Establish an identity.
• Be easy to find.
• Steal good ideas and
make them your own.
• Look out for
opportunities.
Photo Courtesy of: Marc Wathieu
6-24
Progress
Assessment PROGRESS ASSESSMENT
6-25
Small Versus
Big Business SMALL BUSINESSES
LG2
• Small Business --
Independently owned and
operated, not dominant in its
field of operation and meets
certain standards of size.
• Businesses are “small” in
relation to other
businesses in their
industries.
6-26
Small Versus
Big Business SMALL BUSINESS STATISTICS
LG2
6-28
Small Business
Success &
Failure
BUSINESS FAILURES are LOWER
LG2 THAN the REPORTS BECAUSE…
• Changing forms of
ownership is reported as
a “failure.”
• Retirement is reported as
a “failure.”
6-29
Small Business
Success &
Failure
THEY DID WHAT?
LG2 Famous Business Failures
6-32
Managing a
Small Business MAJOR BUSINESS FUNCTIONS
LG4
• Planning
• Financing
• Knowing customers
• Managing employees
• Keeping records
6-33
Begin with
Planning
BUSINESS PLANS
LG4
6-34
Writing a
Business Plan WRITING a BUSINESS PLAN
LG4
6-35
Writing a
Business Plan
A FAMILY AFFAIR
LG4 What to Consider Before Starting a Family Business
6-36
Getting Money
to Fund a Small
Business
SOURCES of CAPITAL
LG4
• Personal savings
• Relatives
• Former employers
• Banks & finance companies
• Government agencies
• Angel investors
• Venture capitalists -- Individuals or companies
that invest in new businesses in exchange for
partial ownership.
6-37
Getting Money
to Fund a Small
Business
FUNDING YOUR DREAM
Getting Cash When Financing Isn’t an Option
LG4
6-38
Getting Money
to Fund a Small COMMUNITY DEVELOPMENT
Business
LG4
FINANCIAL INSTITUTIONS
6-39
Knowing Your
Customers
The MARKET
LG4
6-40
Managing
Employees MANAGING EMPLOYEES
LG4
6-41
Keeping Records
ACCOUNTING ASSISTANCE
LG4
6-42
Looking for Help
LEGAL HELP
LG4
6-43
Looking for Help
MARKETING RESEARCH
LG4
6-44
Looking for Help
OTHER FORMS OF HELP
LG4
6-46
Going
International:
Small Business SMALL BUSINESS PROSPECTS
Prospects
LG5 ABROAD
6-47
EMERGING MARKETS,
EMERGING ENTREPRENEURSHIP
(Reaching Beyond Our Borders)
6-48
Progress
Assessment PROGRESS ASSESSMENT
6-49