EntrepreneurshipEntrepreneurship

Is small business for you?Is small business for you?

It’s an interesting time to be It’s an interesting time to be in small businessin small business

• The number of small businesses is growing (23 mill)The number of small businesses is growing (23 mill)• Small business creates more new jobs (75%)Small business creates more new jobs (75%)• The public favors small business (vs. Walmart)The public favors small business (vs. Walmart)• Classes in entrepreneurship are growingClasses in entrepreneurship are growing• Trend is towards self-employment: 55% say they Trend is towards self-employment: 55% say they want to be their own bosswant to be their own boss• Home-based businesses are growingHome-based businesses are growing•Entrepreneurship attracts people of all agesEntrepreneurship attracts people of all ages

What is “small business”?What is “small business”?

• Management is independent (manager is usually Management is independent (manager is usually owner)owner)• Capital is supplied and ownership is help by a few Capital is supplied and ownership is help by a few individualsindividuals• Area of operations is primarily localArea of operations is primarily local• The business is small compared to competitorsThe business is small compared to competitors

What is “small business”?What is “small business”?

Small Business Administration:Small Business Administration:• Under 20 employees = Very SmallUnder 20 employees = Very Small• 20 - 99 = Small20 - 99 = Small• 100 – 499 = Medium100 – 499 = Medium• 500 or more = Large500 or more = Large

What is the difference between What is the difference between “small business” and “small business” and

“entrepreneurial venture”?“entrepreneurial venture”?

• Small businessSmall business – independently owned; not – independently owned; not dominant in it’s field; does not engage in many new dominant in it’s field; does not engage in many new or innovative practices. Growth is not a primary or innovative practices. Growth is not a primary objective.objective.

• Entrepreneurial VentureEntrepreneurial Venture – principal objectives are – principal objectives are growth and profit; pursues innovation and growth and profit; pursues innovation and aggressive marketing in order to grow fast; owners aggressive marketing in order to grow fast; owners seek to turn profit and move on.seek to turn profit and move on.

What are the contributions What are the contributions of small business?of small business?

• Encourage innovation and flexibilityEncourage innovation and flexibility• Close ties with communities in which they existClose ties with communities in which they exist• Keep larger firms competitiveKeep larger firms competitive• Provide well-rounded experience for employeesProvide well-rounded experience for employees• Help develop risk takersHelp develop risk takers• Generate new employmentGenerate new employment• Provide greater employee job satisfactionProvide greater employee job satisfaction

What are the challenges to What are the challenges to small business?small business?

• Economic downturnsEconomic downturns• Retirement or owner transition (family owned biz Retirement or owner transition (family owned biz problems)problems)• Capital or financing (banks look askance)Capital or financing (banks look askance)• Unexpected growthUnexpected growth

Why do people start small Why do people start small businesses?businesses?

Satisfy personal objectivesSatisfy personal objectives• Achieve independenceAchieve independence• Obtain a higher incomeObtain a higher income• Help their familiesHelp their families• Fill niches (new inventions: what can we think of?)Fill niches (new inventions: what can we think of?)

Characteristics of Characteristics of Successful EntrepreneursSuccessful Entrepreneurs

• Desire independenceDesire independence• Have a strong sense of initiativeHave a strong sense of initiative• Motivated by personal and family (fire in the belly)Motivated by personal and family (fire in the belly)• Driven to achieve quick resultsDriven to achieve quick results• Able to make decisions and react quicklyAble to make decisions and react quickly• Dedicated to their businessesDedicated to their businesses• Enter business as much by chance(!) as by design Enter business as much by chance(!) as by design (eBay)(eBay)

Self AnalysisSelf Analysis