Chapter 1 Entrepreneurship - r

What Is an Entrepreneur?An entrepreneur is someone who is willing to work 16 hours a day to keep from working 8 hours a day for someone else!Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1 Entrepreneurs

Characteristics of EntrepreneursSurvey: 72% of adults in the U.S. have considered starting their own businesses Willingness to take initiativePreference for moderate riskConfidence in their ability to succeedSelf-reliancePerseveranceDesire for immediate feedback


Characteristics of EntrepreneursHigh level of energyCompetitivenessFuture orientationSerial entrepreneursSkilled at organizingValue achievement over money


EntrepreneurshipOne characteristic of entrepreneurs stands out:Diversity!Anyone regardless of age, race, gender, color, national origin, or any other characteristic can become an entrepreneur (although not everyone should)


How to Spot Entrepreneurial OpportunitiesCreativity vs. Innovation Creativity the ability to develop new ideas and to discover new ways of looking at problems and opportunitiesInnovation the ability to apply creative solutions to problems and opportunities to enhance or to enrich peoples lives


How to Spot Entrepreneurial OpportunitiesMonitor trends and exploit them early onStarwichTake a different approach to an existing marketGoodwin Heart PinePut a new twist on an old ideaPODS


How to Spot Entrepreneurial OpportunitiesLook for creative ways to use existing resourcesAlaska Glacial Mud Company Realize that others have the same problem that you doStroller StridesNotice what is missingDogs on Wheels


Benefits of Small Business OwnershipThe opportunity to:Control your own destinyMake a differenceSocial entrepreneursReach your full potentialReap impressive profitsContribute to society and to be recognized for your effortsDo what you enjoy and to have fun at it


Drawbacks of Small Business OwnershipUncertainty of incomeRisk of losing your entire investmentLong hours and hard work


Source: MasterCard Global Small Business Survey, 2007. Average workweek = 54 hours

Work Week

Small Business Owner's Work Week

MasterCard Survey, 2007

Number of Hours per WeekPercentage of Owners

1 to 39 hours10%

40 to 49 hours29%Average workweek54 hours

50 to 59 hours22%

60 to 69 hours19%

More than 70 hours20%

Total100%

MasterCard Global Small Business Survey. P. 20.

http://www.mastercard.com/us/company/en/docs/MasterCard%20Global%20Small%20Business%20Survey%202006_Report.pdf

http://www.mastercard.com/us/company/en/docs/MasterCard%20Global%20Small%20Business%20Survey%202006_Report.pdf

Chart

0.1

0.29

0.22

0.19

0.2

&LSource: Adapted from &"Arial,Italic"Dun & Bradstreet 21st Annual Small Survey Summary Report&"Arial,Regular", 2002, p. 35.

Percentage of Owners

Small Business Owners' Work WeekNumber of Hours Worked per Week

Chart PPT

0.1

0.29

0.22

0.19

0.2

&LSource: Adapted from &"Arial,Italic"Dun & Bradstreet 21st Annual Small Survey Summary Report&"Arial,Regular", 2002, p. 35.

Percentage of Owners

Small Business Owners' Work WeekNumber of Hours Worked per Week

Sheet2

Sheet3


Drawbacks of Small Business OwnershipUncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business gets established


Source: National Federation of Independent Businesses and Wells Fargo Bank, 2002.

Owner Age at Bus. Formation

Owner Age When Business Formed

Age%

Under 259.8%

25-3433.5%Total Age 25-39

35-4431.1%82.4%

45-5417.8%

55-646.1%

65+1.7%Total Age 25-44

100.0%88.5%

Source: NFIB and Wells Fargo Bank

&F

Page &P

Chart

0.098

0.335

0.311

0.178

0.061

0.017

&LSource: National Federation of Indepedent Businesses and Wells Fargo Bank, 2002.

%

Age

Owner Age at Business Formation

Chart PPT

0.098

0.335

0.311

0.178

0.061

0.017

&LSource: National Federation of Indepedent Businesses and Wells Fargo Bank, 1999.

%

Age

Owner Age at Business Formation


Drawbacks of Small Business OwnershipUncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business gets establishedHigh levels of stressComplete responsibilityDiscouragement


Feeding the Entrepreneurial FireEntrepreneurs as heroesEntrepreneurial educationDemographic and economic factorsShift to a service economyTechnological advancementsIndependent lifestylesE-Commerce and the World Wide WebInternational opportunities


The Cultural Diversity of EntrepreneurshipYoung entrepreneurs


Source: Milken Institute, 2003.

Data

Aspiring Teenage Entrepreneurs

BackgroundPercent Interested in Starting a Business

Asian/Pacific Islander89%

African-American86%

Hispanic-American79%

White69%

Source: Milken Institute

Teen Chart

0.89

0.86

0.79

0.69

&LFigure 1.

&LSource: Milken Institute 2003, cited in Cora Daniels, "Minority Rules," &"Arial,Italic"FSB&"Arial,Regular", December 2003/January 2004, p. 66.

Percent Interested in Starting a Business

Aspiring Teenage EntrepreneursPercent Interested in Starting a Business

PPT Chart

0.89

0.86

0.79

0.69

&LFigure 1.

&LSource: Milken Institute 2003, cited in Cora Daniels, "Minority Rules," &"Arial,Italic"FSB&"Arial,Regular", December 2003/January 2004, p. 66.

Percent Interested in Starting a Business

Aspiring Teenage EntrepreneursPercent Interested in Starting a Business

Sheet2

Sheet3


The Cultural Diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneurs


Source: National Federation of Women Business Owners, 2003.

Women-Owned Businesses


Year# in MillionsYear# in Millions

19771.719781.8

19781.819812.2

19792.019842.6

19802.119873.5

19812.219904.7

19822.419936.8

19832.519968.0

19842.619999.1

19853.0200210.1

19863.3

19873.5

19883.8

19894.2

19904.7

19915.4

19926.4

19936.8

19947.3

19957.7

19968.0

19978.5

19988.7

19999.1

2000

2001

200210.1

Source: National Foundation for Women Business Owners.

&A

Page &P

Updated Chart

1.8

2.2

2.6

3.5

4.7

6.8

8

9.1

10.1

&LFigure 1.

&LSource: National Federation of Women Business Owners, 2003.

# in Millions

Millions of businesses

Women Owned Businesses in the United States

PPT Chart

1.8

2.2

2.6

3.5

4.7

6.8

8

9.1

10.1

&LFigure 1.

&LSource: National Federation of Women Business Owners, 2003.

# in Millions

Millions of businesses

Women Owned Businesses in the United States

Growth Chart PPT

0.4230.233

0.0040.123

0.0440.156

Women-owned firms

All firms

Category

Growth Rate

Growth of Women-Owned Companies1997 to 2006

Growth Chart

0.4230.233

0.0040.123

0.0440.156

Women-owned firms

All firms

Category

Growth Rate

Growth of Women-Owned Companies1997 to 2006

Data

Growth of Women-owned Small Companies

1997 to 2006

Growth Rate

CategoryWomen-owned firmsAll firms

Number of firms42.3%23.3%

Number of employees0.4%12.3%

Sales4.4%15.6%

Source: Center for Women's Business Research, 2006.

http://www.cfwbr.org/national/index.php

&A

Page &P

http://www.cfwbr.org/national/index.php

Sheet1


Year# in Millions

19751.0

19802.1

19853.0

19904.3

19957.0

25.5

0.997

25.4235

&A

Page &P

Sheet1

Number (in Millions)



The Cultural Diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneurs

Minority-owned enterprisesImmigrant entrepreneursPart-time entrepreneurs


The Cultural Diversity of EntrepreneurshipHome-based business ownersFamily business ownersCopreneursCorporate castoffsCorporate dropoutsRetired baby Boomers


Source: Kauffman Foundation, Kauffman Index of Entrepreneurial Activity, 2006.

Chart PPT

0.0026

0.003

0.0029

0.0034

0.0021

&LFigure 1.4

&L&9Source: Kauffman Foundation, Kauffman Index of Entrepreneurial Activity, 2006, http://www.kauffman.org/pdf/KIEA_national_052206.pdf.

Percentage of age group starting a company (2005)

Age Group

Percentage of Age Group Starting a Company

Entrepreneurial Activity by Age Group

Chart

0.0026

0.003

0.0029

0.0034

0.0021

&LFigure 1.4

&L&9Source: Kauffman Foundation, Kauffman Index of Entrepreneurial Activity, 2006, http://www.kauffman.org/pdf/KIEA_national_052206.pdf.

Percentage of age group starting a company (2005)

Age Group

Percentage of Age Group Starting a Company


Sheet1


AgePercentage of age group starting a company (2005)

20-340.26%

35-440.30%

45-540.29%

55-640.34%

65 and older0.21%

Source: Kauffman Index of Entrepreneurial Activity

http://www.kauffman.org/pdf/KIEA_national_052206.pdf

http://www.kauffman.org/pdf/KIEA_national_052206.pdf

Sheet2

Sheet3


Source: Small Business Administration, 2006.

Chart PPT

0.1281

0.0474

0.0563

0.1247

0.0905

0.4977

0.0553

&LFigure 1.5

&LSource: U.S. Small Business Administration, 2006.

Percentage

Small Businesses by Industry

Chart

0.1281

0.0474

0.0563

0.1247

0.0905

0.4977

0.0553

&LFigure 1.5

&LSource: U.S. Small Business Administration, 2006.

Percentage

Small Businesses by Industry

Sheet1

Figure 1.5

Small Business by Industry

2004

IndustryPercentage

Construction12.81%

Manufacturing4.74%

Wholesale5.63%

Retail12.47%

Finance & Real Estate9.05%

Services49.77%94.47%

Other5.53%

Total100.00%

Source, SBA, 2006

Sheet2

Sheet3


Small Businesses...Make up 99.7% of all the 29.3 million businesses in the U.S.Employ 52% of the nations private sector workforcePay 45% of total private payrollCreate more jobs than big businesses1996 to 2006: Between 60% and 80% of all net new jobs in the U.S.


Small Businesses...Are leaders in offering training and advancement opportunities to workersProvide 67% of workers with their first jobs Produce 51% of the nations private GDPAccount for 47% of business salesKey role in innovation:Produce 13X to 14X more patents per employees than large companies


Source: National Federation of Independent Businesses Business Policy Guide, 2003.

Chart5

1

0.81

0.65

0.54

0.46

0.4

0.36

0.32

0.29

0.27

0.25

% Surviving

# of Years in Business

% of Small Firms Surviving

Small Business Survival Rate

Chart3

1

0.81

0.65

0.54

0.46

0.4

0.36

0.32

0.29

0.27

0.25

% Surviving

Percent


Survival Rate


Years in Business% Surviving

New100%

181%

265%

354%

446%

540%

636%

732%

829%

927%

1025%

Source: NFIB Business Policy Guide 2003, p. 16.

&A

Page &P

Chart

&A

Page &P

Chart

1

0.81

0.65

0.54

0.46

0.4

0.36

0.32

0.29

0.27

0.25

&L&"Arial,Bold"&12Figure 1.9.

&L&9Source: NFIB Foundation/VISA Business Card Primer.

% Surviving




Chart (2)

&A

Page &P

Chart (2)

1

0.81

0.65

0.54

0.46

0.4

0.36

0.32

0.29

0.27

0.25

&L&"Arial,Bold"&12Figure 1.9.

&L&9Source: NFIB Foundation/VISA Business Card Primer.

% Surviving




Sheet3

&A

Page &P

Sheet4

&A

Page &P

Sheet5

&A

Page &P

Sheet6

&A

Page &P

Sheet7

&A

Page &P

Sheet8

&A

Page &P

Sheet9

&A

Page &P

Sheet10

&A

Page &P

Sheet11

&A

Page &P

Sheet12

&A

Page &P

Sheet13

&A

Page &P

Sheet14

&A

Page &P

Sheet15

&A

Page &P

Sheet16

&A

Page &P


Putting Failure into PerspectiveMedian age of U.S. companies = 12 years Entrepreneurs are not paralyzed by the prospect of failureFailure a natural part of the creative process Successful entrepreneurs learn to fail intelligently


Avoiding the Pitfalls of Small Business FailureKnow your business in depthPrepare a business planManage financial resourcesUnderstand financial statements


Avoiding the Pitfalls of Small Business FailureLearn to manage people effectivelySet your business apart from the competitionMaintain a positive attitude


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

This "Deco" border was drawn on the Slide master using PowerPoint's Rectangle and Line tools. A smaller version was placed on the Notes Master by selecting all of the elements (using Select All from the Edit menu), deselecting the unwanted elements such as the Title (holding down the Shift key and clicking on the unwanted elements), and then using Paste as Picture from the Edit menu to place the border on the Notes Master. After pasting as a picture, we used the resize handles (with Shift to maintain the proportions) to reduce it to the size you see.Be sure to delete this word processing box before using this template for your own presentation.

Chapter 1 Entrepreneurship - r

Documents

Transcript of Chapter 1 Entrepreneurship - r