Copyright ©2015 Pearson Education, Inc.EM-1 Chapter EM Managing Entrepreneurial Ventures

What is Entrepreneurship? Entrepreneurship: The process of starting new businesses, generally in response to opportunities. Copyright ©2015 Pearson Education, Inc.EM-2

What Do Entrepreneurs Do? Assess the potential of the venture Research the venture’s feasibility Plan the venture Organize the venture Launch the venture Manage the venture Manage the venture’s growth Copyright ©2015 Pearson Education, Inc.EM-3

Business Plans Executive summary Synopsis business plan Summary business plan Fully business plan Operational business plan Copyright ©2015 Pearson Education, Inc.EM-4

Components of a Full Business Plan Executive summary Analysis of opportunity Analysis of the context Description of the business Financial data and projections Supporting documentation Copyright ©2015 Pearson Education, Inc.EM-5

Legal Forms of Organization 1.Sole proprietorship 2. General partnership 3. Limited liability partnership (LLP) 4. C corporation 5. S corporation 6. Limited liability company (LLC) Copyright ©2015 Pearson Education, Inc.EM-6

Organizational Structure Work specialization Departmentalization Chain of command Span of control Amount of centralization or decentralization Amount of formalization Copyright ©2015 Pearson Education, Inc.EM-7

Human Resource Management (HRM) Issues 1.Employee recruitment 2.Employee retention Copyright ©2015 Pearson Education, Inc.EM-8

What Type of Personality Do Entrepreneurs Have? Some Common Traits: High motivation Abundant self-confidence High energy level Great persistence Moderate risk taker The proactive personality Copyright ©2015 Pearson Education, Inc.EM-9

Motivating Employees Empowering employees by: Using participative decision making Delegating decisions or duties Giving them discretion over how they do their work Copyright ©2015 Pearson Education, Inc.EM-10

Entrepreneurs as Leaders Drawing out the best in people Creating a vision for the organization Developing teams that are empowered, self- directed, and cross-functional Copyright ©2015 Pearson Education, Inc.EM-11

Control Issues Managing growth Managing downturns Exiting the venture Managing personal life choices and challenges Copyright ©2015 Pearson Education, Inc.EM-12

Personal Challenges Entrepreneurs manage personal challenges by: Becoming pros at time management Identifying competent business advisors Dealing with conflicts as they arise Developing a network of trusted friends/peers Recognizing when stress levels are too high Copyright ©2015 Pearson Education, Inc.EM-13

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