Introduction to Business
© Thomson South
-
Western
Chapter
Entrepreneurship and
Small Business Management
6
-
1
Becoming an Entrepreneur
6
-
2
Small Business Basics
6
-
3
Starting a Small Business
6
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
2
LESSON 6
-
1
Becoming an Entrepreneur
Goals
Identify characteristics of successful
entrepreneurs.
Recognize the importance of
entrepreneurship in the economy.
Describe opportunities and risks of
entrepreneurship.
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
3
Key Terms
entrepreneur
entrepreneurship
venture capital
innovation
improvement
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
4
CHARACTERISTICS OF
ENTREPRENEURS
Desire to be your own boss
Special skills and abilities
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
5
ENTREPRENEURS
IN ACTION
Pankaj Arora
Rich Stachowski
Jeffrey Rodriguez and John Serrano
Abbey Fleck
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
6
WHAT DOES IT TAKE?
Entrepreneurs are more
persistent
inquisitive
energetic
goal oriented
independent
self
-
confident
creative
reliable
competitive
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
7
WHAT DOES IT TAKE?
Entrepreneurs have
problem
-
solving skills
tolerance for ambiguity
strong integrity
personal initiative
ability to secure resources
capability to learn from failure
willingness to work hard
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
8
>>
C H E C K P O I N T
What personal characteristic are common
to most successful entrepreneurs?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
9
ENTREPRENEURSHIP
AND THE ECONOMY
Employment
Financing
Productivity
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
10
NUMBER OF EMPLOYEES
IN NEW BUSINESSES
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
11
>>
C H E C K P O I N T
What are the sources of financing that
entrepreneurs use for their new
businesses?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
12
OPPORTUNITIES
Innovation
Improvement
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
13
RISKS
Recognizing risks
Lack of adequate capital
Low sales
Higher than expected expenses
Competitive pressure
An owner unprepared to manage a growing
business
Operations requiring more time than the owner is
willing to commit
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
14
>>
C H E C K P O I N T
Where do entrepreneurship opportunities
begin?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
15
LESSON 6
-
2
Small Business Basics
Goals
Identify important characteristics of
small businesses.
Recognize the competitive advantages
of small businesses.
Identify problems faced by many small
businesses.
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
16
Key Terms
small business
Small Business Administration (SBA)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
17
SMALL BUSINESS
OWNERSHIP
Description of a small business
Owner is usually the manager
Operates in one or very few locations
Typically serves a small market
Not dominant in its field
Small business employment
Ownership diversity
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
18
COMMON TYPES OF
SMALL BUSINESSES
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
19
>>
C H E C K P O I N T
What percentage of employees in the
United States work for small businesses?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
20
SMALL BUSINESS
ADVANTAGES
Meeting customer needs
Providing unique services
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
21
>>
C H E C K P O I N T
How can small businesses compete
successfully with larger businesses?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
22
COMMON REASONS FOR
SMALL BUSINESS FAILURE
Not keeping adequate records
Not having enough start
-
up money
Lack of management experience
Lack of experience with the type of business
Not controlling operating expenses
Poor location for the business
Failure to manage credit offered to customers
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
23
SMALL BUSINESS
ASSISTANCE
Faculties of universities and colleges
Local groups of business people
Small Business Administration (SBA)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
24
>>
C H E C K P O I N T
List common reasons for small business
failure.
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
25
LESSON 6
-
3
Starting a Small Business
Goals
Recognize important factors to be
considered when starting a business.
Describe the elements of a business
plan.
Identify types and sources of financing
for a small business.
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
26
Key Terms
business plan
start
-
up financing
short
-
term financing
long
-
term financing
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
27
THE BUSINESS DECISION
An idea plus experience
Right place and time
Team approach
Preparation and research
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
28
>>
C H E C K P O I N T
Why is it important to use a team
approach when starting a new business?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
29
WHAT IS A
BUSINESS PLAN?
A
business plan
is a written
description of the business idea and
how it will be carried out, including all
major business activities.
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
30
ELEMENTS OF A
BUSINESS PLAN
Description of the Business
The business idea
Major products and services
Ownership structure
Strengths/weaknesses
Long
-
and short
-
term goals
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
31
ELEMENTS OF A
BUSINESS PLAN
Description of Competition
Characteristics of the industry
Condition of the economy
Strengths and weaknesses of major
competitors
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
32
ELEMENTS OF A
BUSINESS PLAN
Customer Analysis
Description of customers
Location, number, and resources of
customers
Sales forecasts
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
33
ELEMENTS OF A
BUSINESS PLAN
Operations Plan
Organization of the company
Description of major operations
Analysis of resources needed
Human resource plans
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
34
ELEMENTS OF A
BUSINESS PLAN
Marketing Plan
Description of major marketing activities
Description of resources needed
Schedule of marketing activities
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
35
ELEMENTS OF A
BUSINESS PLAN
Financial Plans
Start
-
up costs
Short
-
and long
-
term financial needs
Sources of financing
Budgets and financial statements
(continued)
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
36
STEPS IN DEVELOPING
THE BUSINESS PLAN
Gather and review information
Develop the “game plan”
Write the plan
Ask an expert to review the plan
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
37
>>
C H E C K P O I N T
What is the “game plan” in a business
plan?
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
38
FINANCING
THE SMALL BUSINESS
Types of financing
Start
-
up financing
Short
-
term financing
Long
-
term financing
Sources of financing
Owner
-
supplied funds
Borrowed funds
Introduction to Business
© Thomson South
-
Western
Chapter 6
Slide
39
>>
C H E C K P O I N T
In addition to owner
-
supplied capital, what
are several other sources of financing for
a small business?
Enter the password to open this PDF file:
File name:
-
File size:
-
Title:
-
Author:
-
Subject:
-
Keywords:
-
Creation Date:
-
Modification Date:
-
Creator:
-
PDF Producer:
-
PDF Version:
-
Page Count:
-
Preparing document for printing…
0%
Σχόλια 0
Συνδεθείτε για να κοινοποιήσετε σχόλιο