‫الجامعة السعودية االلكترونية‬

‫الجامعة السعودية االلكترونية‬

‫‪26/12/2021‬‬
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College of Computing and Informatics
Bachelor of Science in Information Technology
IT364
IT Entrepreneurship and Innovation

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 Week 2:
Entrepreneurs: The driving force behind small business

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 1. What is an Entrepreneur?
2. How to Spot Entrepreneurial Opportunities?
3. The Benefits of Owning a Small Business
4. The Potential Drawbacks of Entrepreneurship
5. Why the Boom: The Fuel Feeding the Entrepreneurial
Contents Fire
6. The Cultural Diversity of Entrepreneurship
7. The Contributions of Small Businesses
8. Putting Failure into Perspective

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 1. Define the role of the entrepreneur in the U.S. economy and
describe the entrepreneurial profile.
2. Explain how entrepreneurs spot business opportunities and
describe the benefits of owning a small business.
3. Describe the potential drawbacks of owning a small business
and explain the forces that are driving the growth in
entrepreneurship. Discuss the role of diversity in small
Weekly business and entrepreneurship.

Learning
Outcomes

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1. What is an Entrepreneur?

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 What is an Entrepreneur?

• Entrepreneur is one who establishes new business in a situation that is full of risk
and uncertainty for the purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources to capitalize on those
opportunities.

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
 What is an Entrepreneur?

• An Entrepreneur tends to exhibit the following characteristics:

• Desire and willingness to take initiative

• Preference for moderate risk

• Confidence in their ability to succeed

• Self-reliance

• Perseverance entrepreneurs do not give up even in the time of failure, they simply keep trying

• Desire for immediate feedback

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 What is an Entrepreneur?

• More on characteristics of entrepreneur

• High level of energy

• Competitiveness

• Future orientation

• Serial entrepreneurs are those who create multiple companies and usually run more than one
business simultaneously.

• Skill at organizing

• Value of achievement over money

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 What is an Entrepreneur?

• Other characteristics of an entrepreneur

• High degree of commitment

• Tolerance of ambiguity

• Flexibility

• Tenacity

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 What is an Entrepreneur?

• Entrepreneurship is a skill that is learned.

• Anyone can become an entrepreneur irrespective of age, race, gender, color, national
origin, or any other characteristic.

• Success in entrepreneurship does not depend on a single characteristic rather diversity

seems to be a central characteristic of successful entrepreneurs.

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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2. How to Spot Entrepreneurial Opportunities?

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 How to Spot Entrepreneurial Opportunities?

• Creativity and Innovation are the keys to solve problems and capitalize on
opportunities that people face every day.

• Creativity refers to the ability of developing new ideas and discovering new ways of
looking at problems and opportunities.

• Innovation refers to the ability of applying creative solutions to those problems and
opportunities to enhance or to enrich people’s lives.

• Creativity is thinking new things and Innovation is doing new things.

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 How to Spot Entrepreneurial Opportunities?

• Techniques that can be used to identify business opportunities

• Monitor trends and exploit them early on

• Take a different approach to an existing market

• Put a new twist on an old idea

• Look for creative ways to use existing resources

• Realize that others have the same problem you do

• Notice what is missing

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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3. The Benefits of Owning a Small Business

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 The Benefits of Owning a Small Business

• The benefits of owning a small business include

• Opportunity to gain control over your own destiny

• Opportunity to make a difference

• Social entrepreneurs

• Opportunity to reach your full potential

• Opportunity to reap impressive profits

• Opportunity to contribute to society and be recognized for your efforts

• Opportunity to do what you enjoy doing

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
4. The Potential Drawbacks of Entrepreneurship

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 The Potential Drawbacks of Entrepreneurship

• Uncertainty of Income

• Risk of losing your entire invested capital

• 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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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Potential Drawbacks of Entrepreneurship

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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5. Why the Boom: The Fuel Feeding the
Entrepreneurial Fire

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 Why the Boom: The Fuel Feeding the
Entrepreneurial Fire
• Factors that have led to this age of entrepreneurship include

• Entrepreneurs as heroes

• Entrepreneurial education

• Economic and Demographic factors

• Shift to a service economy

• Technology advancements

• Outsourcing

• Independent lifestyle

• E-commerce and the World Wide Web

• International opportunities

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
6. The Cultural Diversity of Entrepreneurship

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 The Cultural Diversity of Entrepreneurship

• Cultural diversity is one of the entrepreneurship’s greatest strengths.

• The contributors to the cultural diversity include:

• Young entrepreneurs

• Women entrepreneurs

• Minority enterprises

• Immigrant entrepreneurs

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Part-Time entrepreneurs

• Home-Based business owners

• Family business owners

• Copreneurs

• Corporate castoffs

• Corporate “Dropouts”

• Retired baby boomers

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Figure 1.2 Entrepreneurial

Activity by Age Group

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Figure 1.3 Entrepreneurial

Activity by Gender

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Figure 1.4 Minority Business

Ownership in the United
States

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Rules of a Successful Home-based Business

• Rule 1. Do your homework

• Rule 2. Find out what your zoning restrictions are

• Rule 3. Create distinct zones for your family and business dealings

• Rule 4. Focus your home-based business idea

• Rule 5. Discuss your business rules with your family

• Rule 6. Select an appropriate business name

• Rule 7. Buy the right equipment

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Cultural Diversity of Entrepreneurship

• Rules of a Successful Home-based Business

• Rule 8. Dress appropriately

• Rule 9. Learn to deal with distractions

• Rule 10. Realize that your phone can be your best friend … or your worst enemy

• Rule 11. Be firm with friends and neighbors

• Rule 12. Maximize your productivity

• Rule 13. Create no-work time zones

• Rule 14. Take advantage of tax breaks

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
 The Cultural Diversity of Entrepreneurship

• Rules of a Successful Home-based Business

• Rule 15. Make sure you have adequate insurance coverage

• Rule 16. Understand the special circumstances under which you can hire outside employees

• Rule 17. Be prepared if your business requires clients to come to your home

• Rule 18. Get a post office box

• Rule 19. Network

• Rule 20. Be proud of your home-based business

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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7. The Contributions of Small Business

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 The Contributions of Small Business

• Small business refers to a business that employs less than 100 people.

• 99.7% of the total businesses in the United States are categorized as “small”

• 50.2% of the nation’s private sector workforce is employed by small businesses

• 45% of the nation’s total private payroll is paid by small businesses

• Compared to big businesses, small businesses create more job opportunities

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 The Contributions of Small Business

• Figure 1.5 Small Business by Industry

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
8. Putting Failure into Perspective

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 Putting Failure into Perspective

• About 54 percent of new businesses fail within 4 years

• Entrepreneurs are not paralyzed by the fear of failure

• Failure is a natural part of the creative process

• Successful entrepreneurs exhibit the ability to fail intelligently

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
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 Putting Failure into Perspective

• Figure 1.6 Small Business

Survival Rate

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This Presentation is mainly dependent on the textbook: effective SMALL BUSINESS management, AN ENTREPRENEURIAL APPROACH, 10 Edition
th
This Presentation is mainly dependent on
the textbook:
Chapter 1 : Entrepreneurs: The driving
force behind small business.
(Effective Small Business management,
AN ENTREPRENEURIAL APPROACH,
10th Edition by Norman M. Scarborough)

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Thank You

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