Chapter One

Essentials Of Business And

Entrepreneurship

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 Learning Objectives

 Introduction: Importance of small business

 Entrepreneurship
 Things to Know about a Business
 Organization’s Environments
 Questions for Discussion

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 Introduction
To run a business efficiently and effectively, business decision makers have to be knowledgeable.
Importance of Small Businesses

The contribution of small businesses can be measured in terms of their impact on :

1.The job creation

2.Innovation

3.Contributions to big business

.

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 What is an organization?

 An organization is a planned
arrangement of people to achieve a
specific goal.

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 Characteristics of organization

In every organization, there are three common

characteristics:
People: An organization cannot function without its
people.
Structure: An organization develops a structure under
which employees do their work.
Purpose: An organization expresses its purpose through
its goals and objectives.

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 Entrepreneurship

 An entrepreneur creates a new business facing

risk and uncertainty for the aim of achieving
profit and growth by finding considerable
opportunities and by assembling the needed
resources to exploit them.

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 Entrepreneurial Profile
One way to describe the personality of an entrepreneur is
through highlighting the entrepreneurial profile:
•Desire for responsibility
•Preference for moderate risk:
•Confidence in their ability to succeed
•Desire for immediate feedback
•High level of energy
•Future orientation
•Skill at organizing
•Value of achievement over money

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 Benefits of Entrepreneurship

Before starting a new small business, people

should consider some of the benefits of
entrepreneurship:
Create their own destiny.
Social Entrepreneur
Achievement

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 Drawbacks of Entrepreneurship

• Entrepreneurs cannot be sure enough that they will gain

enough money to survive.
• Have to work hard for long hours.
• Starting a new business can be extremely rewarding.
• Since they are their own boss, entrepreneurs have to take
the complete responsibility for decisions.

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 Things to Know about a Business

Vision and Mission:

A vision: “Where are we going?”
A mission statement is “What business are we in?”
Goals and Objectives:
Objectives are more specific targets of performance,
addressing topics like profitability and growth.

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 Characteristics Of Smart objective

 Specific
 Measurable
 Achievable or Attainable
 Realistic
 Time-bounded

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 Goals

There are four main purposes for setting

goals:
Provide direction and guidance for
managers at all the managerial levels;
 Help firms allocate resources in the
different departments;
Help define the company-wide culture
Help managers assess performance

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 SWOT Analysis

 Strengths are positive internal factors.

 Weaknesses are negative internal factors.
 Opportunities are positive external factors
 Threats are negative external factors.

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SWOT

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 How to Start a New Business?

 Buying an existing business,

 Choosing a franchise
 Starting from scratch.

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 Organization’s Environments
 Managers’ decisions and actions are
influenced by both the organization’s external
and internal environments.

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 Internal Environment

Mainly characterized by the

organizational culture:

 Value
 Principle
 Traditions and ways of doing things that affect all
the members of the organization.

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 External Environments

1. The specific mainly includes:

• The Suppliers,
• Distributors,
• Customers
• Competitors

2. The general environment:

• Economic forces
• Technological
• Socio-cultural,
• Demographic
• Political and legal forces

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 Questions for Discussion
 Q 1. In what ways do small businesses contribute to
the Lebanese economy?
 Q 2. To what extent do you personally fit the
entrepreneurial profile?
 Q 3. Contrast the benefits of entrepreneurship with its
drawbacks.
 Q 4. Prepare a SWOT analysis for your University.
 Q 5. Analyze your University campus’s internal and
external environments.

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