Chapter – 6

Managing Start-Ups and New

Ventures
Course Instructor:
Sadaf Zahra Usman
Entrepreneurship

 The process of initiating a business venture

 Organizing necessary resources: risk/reward
 An entrepreneur engages in entrepreneurship
 Recognizes a valuable idea
• Assumes financial and legal risks
• Receives the business’s profits
 Successful entrepreneurs have many different motivations
Entrepreneurship Today

 Vital, dynamic, and increasingly important to the economy

 Generated 64% of new jobs over the last 15 years
 Half of the private-sector jobs Represent 98% of all firms
 Entrepreneurial companies are engines for creation and innovation
 Entrepreneurship is booming around the world
Description of Small Businesses

 Independently owned and operated, organized for profit but not

dominant in the field
 Size standards for small businesses are currently under revision –
• Meet change and shifting economy –
• A daunting task but will provide greater flexibility
Entrepreneurship activity around the world
Who Are Entrepreneurs

 More likely to be the first-born

 Parents are likely entrepreneurs
 Immigrants often start businesses
 Women are embracing entrepreneurship
 Minorities show a high rate of entrepreneurship
 As younger people become entrepreneurs due to the economy; entrepreneurship will
be increasingly diverse
 Entrepreneurs Personality Traits
 High importance on being free to achieve
 Want to maximize their potential
 Six important traits:
 Internal Locus of Control
 High Energy Level
 Need to Achieve
 Self-Confidence
 Awareness of Passing Time
 Tolerance for Ambiguity
 Social Entrepreneurship

Combines the creativity, business smarts, passion, and hard work of the
traditional entrepreneur with a mission to change the world for the better
Entrepreneurial Start-Up
Start with an idea
Write a business plan
Choose a legal structure
Arrange financing
 Writing a Business Plan

1. Clear, compelling vision

2. Realistic financial projects
3. Profile target market
4. Profile the industry and competition
5. Introduce the management team
6. Well-written and formatted
7. Keep it short
8. Highlight critical risks
9. Outline sources of funding
10. Capture attention with a great summary
Choosing a Legal Structure

 Sole proprietorship – unincorporated business owned by an individual for profit - Unlimited

liability

 Partnership – an unincorporated business owned by two or more people  - - Possible

disagreements
- Unlimited liability

 Corporation – an artificial entity created by the state and existing apart from its owners
-Expensive and complex
Arranging Financing

 Debt Financing, money that must be repaid:

– Family and friends
– Bank loans/Finance companies
– Personal credit cards
– Wealthy individuals
– Angel financing
 Equity Financing is money invested by owners or those purchasing stock
– Venture capital firms
Starting an Online Business

 The Internet is aiding in the launch of new businesses and new ventures
 Starting an online business:

– Find a market niche

– Create a professional website
– Create a domain name
– Build online relationships
Five Stages of Growth of an Entrepreneurial Company
 Managing A Growing Business

 Planning – The business plan should be treated as a living document – Recognize

the value of the web for operations

 Organizing – Delegate and decentralize as the business grows – Teams, policies,

and divisions will be required

 Leading – Motivate employees for cooperation and growth

 Controlling – Accounting records, budgets, statistical reports, and technology

Thank you