Professional Documents
Culture Documents
Student of presentation
Topics of presentation
Introduction of small business
Entrepreneurship
An entrepreneur is a person with the need to
build and create something new.
If his or her organization is to survive, the
entrepreneur must be a businessperson, yet not
all business people are entrepreneurs.
Entrepreneurs process a:
Entrepreneurship
Entrepreneur
businessperson who accepts both the risks and
the opportunities involved in creating and
operating a new business venture
Entrepreneurship
the process of seeking business opportunities under
conditions of risk
Entrepreneurs are:
Hard workers who willingly accept responsibility
Optimistic and have an exceptionally strong desire
to achieve
Entrepreneurial Characteristics
Resourcefulness
Concern for good, personal customer relations
Strong desire to be their own bosses
Deal with uncertainty and risk
Starting from
Scratch
Getting Started
Buying an
Existing
Business
Starting
From
Scratch
Franchise
an arrangement in which a buyer (franchisee)
purchases the right to sell the good or service of
the seller (franchiser)
Advantages
Proven business opportunity
Access to management expertise
Disadvantages
Start-up costs
Ongoing payments
Management rules and restrictions
Personal resources
Loans from family and friends
Bank loans
Venture capital companies
Small-Business Investment Companies (SBICs)
Minority Enterprise Small-Business Investment
Companies (MESBICs)
SBA financial programs
. Firms in Terms of
Organization Type and Sales Revenue
Services
66% of the economy
Employs 70% of workforce
The Geek Squad one-man service firm,
1994
Costs
Flexibility
Focus
Reputation
Disadvantages of Small-Business
Ownership
High Stress Level
High Failure Rate
90% of all new businesses fail within the first 5
years
Undercapitalization
Lack of funds to operate a business normally
Small-Business Ownership
Sole Proprietorship
Partnership
Corporation
Demographic Trends
Boomers, echo boomers (millennials), Generation Y
Immigrants (12% of U.S. population)