Chapter 18 - Entrepreneurship and small business. After reading this chapter, you should be able to answer the following questions: Understand the nature of entrepreneurship and entrepreneurs, discuss small business and how to start one.
Trang 1Entrepreneurship
and Small Business
Trang 2• What is entrepreneurship and who are entrepreneurs?
businesses and how to start one?
Trang 3and pursue opportunities
backgrounds and experiences
personality traits
growing in numbers
to pressing social problems
Trang 4Entrepreneurs Are Risk Takers
Trang 5Entrepreneurs Are Risk Takers
– Exploiting a new market opportunity before competitors
Trang 6Entrepreneurs Are Risk Takers
Trang 7Entrepreneur Characteristics
– Family environment
– Career and work history
– Windows of career opportunity
Trang 8Entrepreneur Characteristics
– Employees of a larger firm that display
entrepreneurial behavior such as developing
a new product or process
Trang 9Entrepreneur Characteristics
Trang 10Women and Minorities
Trang 12businesses get started
Trang 13Importance of Small Business
– Employ some 52 percent of private workers
– Provide 51 percent of private-sector output
– Receive 35 percent of federal government contract dollars
– Provide as many as 7 out of every 10 new jobs in the economy
Trang 14Small Business Life Cycle
Trang 15– Largest percentage of businesses worldwide
– Feuds result when family members disagree over how the business is run
Trang 16years
– As many as 60% to 80% fail
Trang 17Small Business Assistance
– Provides services to help new businesses get started
– Supported by Small Business Administration
– Offer help to small business owners to set up and manage their businesses
Trang 18Business Plans
– Describes goals, operating plans and
financing for a new business
– Banks want to see a well-developed business plan before loaning money
Trang 19Forms of Ownership
– An individual or married couple pursuing business for a profit
Trang 20Forms of Ownership
Trang 21Forms of Ownership
– A legal entity that exists separately from its owners
– A combination of sole proprietorship,
partnership, and corporation
what is invested in the company
purposes
Trang 22• Debt Financing
bank, or a financial institution.
• Equity Financing
investment monies
• Venture Capitalists
return for an equity stake in the business
Trang 23– A wealthy individual willing to invest in return for equity in a new venture
– An initial selling of shares of stock to the
public at large