1. Chapter 7 Understanding Entrepreneurship and Small Business
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2. Sr. Chapter Chapter HeadingNo.No.1. 3 Understanding the
Global context of business (031012)2. 4 Conducting Business
Ethically and Responsibly (250212)3. 6 Organizing the Business
Enterprise (030312)4. 7 Understanding Entrepreneurship and Small
Business (100312)5. 8 Managing Human Resources6. 9 Understanding
Employee Motivating, Satisfying and Leadership7. 11 Understanding
Marketing Processes and Consumer Behavior8. 16 Managing Quality and
Productivity9. 17 Managing Information Systems and Communication
Technology10. 19 Understanding Money and Banking11. 20 Intermediate
Term and Lease Financing
3. Next class Quiz Two groups 1. established entrepreneurs What
they did Why did they stall How could they improve 2. emerging
entrepreneurs story What to do next 3
4. FINAL PROJECT GENERATE REVENUE 4
5. Marks Distribution50 Terminal Examination20 Mid Term
Examination15 Quizzes15 Final Assignment 5
6. 1. WHAT IS SMALL BUSINESS2. ENTREPRENEURSHIP3. SUCCESS AND
FAILURE IN SMALL BUSINESS4. STARTING AND OPERATING THE SMALL
BUSINESS5. FRANCHISING
7. 1. WHAT IS SMALL BUSINESS The importance of small business
in the economy Popular forms of small business enterprise2.
ENTREPRENEURSHIP The distinction between entrepreneurship and small
business Entrepreneurial characteristics3. SUCCESS AND FAILURE IN
SMALL BUSINESS Trends in small business start-Ups Reasons for
failures Reasons for success4. STARTING AND OPERATING THE SMALL
BUSINESS Financing the small business Sources of management
advice5. FRANCHISING Advantages and Disadvantages of
Franchising
8. What Is Small Business? Independently owned and managed
business that does not dominate its market
9. The importance of Small businessin Economy Job Creation
Innovation Importance to Big Businesses
10. Popular Forms of Small-Business Enterprise Services
Manufacturing 5% Finance & Retailing Insurance Other
Construction 10% 1.7% Financial Wholesale 8% Insurance Wholesaling
Transportation Manufacturing Construction Services Retailing 37.6%
10% 22.7% Transportation 5%
11. 2. ENTREPRENEURSHIPEntrepreneurship is the act of being
anentrepreneurAn entrepreneur can be defined as abusinessperson who
accepts the risks andopportunities of creating, operating
andgrowing a new businessSmall Business Owner does not have
plansfor growth 11
12. Entrepreneurial Characteristics Entrepreneurs are Founders
of businesses that become large-scale enterprises. People who: Buy
a local franchise outlet Open a small retail shop Operate a
self-employed service business People who introduce a new product
or operational change in an existing organization 12
13. Entrepreneurial CharacteristicsSmall Business Founder True
EntrepreneurHE: HE:Boss LeaderLone Ranger NetworkerSecretive
OpenSelf-reliant InquisitiveSeat-of-the-pants Letter of the
business planSnap decisions Consensus decisionMale ownership Mixed
OwnershipKnows the Trade Knows the businessAutomation: Technology
lets Innovation: Technology lets peoplebusiness automate the work
that do things that theyve never donepeople had always done before
13
14. 3. SUCCESS AND FAILUREIN SMALL BUSINESS 14
15. Trends in Small Business Start-ups Emergence of E-commerce
Entrepreneurs who crossover from Big Business Increased
opportunities for Minorities & Women Global Opportunities
Increased Survival Rates
16. Reasons for Success and FailureReasons for Failure Poor
management Neglect Weak control systems Reasons for Success
Insufficient capital Hard work, drive, dedication Market demand
Strong management Luck!!!
17. 4. STARTING ANDOPERATING THE SMALLBUSINESS 17
18. Starting the Small BusinessFirst: The entrepreneurs
commitment towards businessSecond:Choosing the goods and services,
evaluating the chosen industry and marketThird: Assessment of ones
own skills 18
19. How to start the smallbusiness 1. Buying an existing
business 2. Starting from Scratch 19
20. 20
21. Financing the Small Business Personal resources Loans
Venture capital companies Small-business investment companies Small
Business Association (SBA) Financial aid and management advice
Advisory boards, management consultatnts, the SBA, and
networking
22. DEFINITIONS: Business plan: document that tells potential
lenders why money is needed, how it will be used, and when it will
be repaid Venture Capital company: Group of small investors that
invest money in companies with rapid growth potential Management
consultant: Independent outside specialist hired to help managers
to solve business problems Networking: Interconnections among
business people for the purpose of discussing mutual problems and
opportunities and perhaps pooling resources
23. 5. FRANCHISING Franchise is an arrangement in which a buyer
(franchisee) purchases the right to sell the good or service of the
seller (Franchiser) 23
24. FRANCHISING An Ownership Opportunity Advantages
Disadvantages Proven business Start-up costs opportunity On-going
Access to payments management Management expertise rules and
restrictions
