Entrepreneurs: The Driving Force Behind Small Business 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. Copyright 2006 Prentice Hall Publishing Company

The World of the Entrepreneur In the U.S., entrepreneurs start nearly 6 million businesses a year! Global Entrepreneurship Monitor (GEM) Approximately 10.5% of U.S. population is actively involved in trying to start a new business. Approximately 12% of people in 37 GEM countries studied are involved in starting a new business. Copyright 2006 Prentice Hall Publishing Company

Source: 2002 Global Entrepreneurship Monitor.

What is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them. Copyright 2006 Prentice Hall Publishing Company

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!

Source: Dun & Bradstreet 19th Annual Small Business Survey, 2000.

Characteristics of Entrepreneurs Desire to take initiative Preference for moderate risk Confidence in their ability to succeed Self-reliance Perseverance Desire for immediate feedback Copyright 2006 Prentice Hall Publishing Company

Characteristics of Entrepreneurs High level of energy Competitiveness Future orientation Serial entrepreneurs Skilled at organizing Value achievement over money Copyright 2006 Prentice Hall Publishing Company

Copyright 2006 Prentice Hall Publishing Company Entrepreneurship One 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). Copyright 2006 Prentice Hall Publishing Company

Benefits of Small Business Ownership The opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at it Copyright 2006 Prentice Hall Publishing Company

Drawbacks of Small Business Ownership Uncertainty of income Risk of losing your entire investment Long hours and hard work Copyright 2006 Prentice Hall Publishing Company

Source: Dun & Bradstreet 21st Annual Small Business Survey, 2002.

Drawbacks of Small Business Ownership Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established Copyright 2006 Prentice Hall Publishing Company

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

Drawbacks of Small Business Ownership Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility Discouragement Copyright 2006 Prentice Hall Publishing Company

Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyles E-Commerce and the World Wide Web Copyright 2006 Prentice Hall Publishing Company

Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technological advancements Independent lifestyles E-Commerce and the World Wide Web International opportunities Copyright 2006 Prentice Hall Publishing Company

The Cultural Diversity of Entrepreneurship Young entrepreneurs Copyright 2006 Prentice Hall Publishing Company

Source: Milken Institute, 2003.

The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs Copyright 2006 Prentice Hall Publishing Company

Source: National Federation of Women Business Owners, 2003.

The Cultural Diversity of Entrepreneurship Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs Copyright 2006 Prentice Hall Publishing Company

The Cultural Diversity of Entrepreneurship Home-based business owners Family business owners Copreneurs Corporate castoffs Corporate dropouts Copyright 2006 Prentice Hall Publishing Company

Source: Small Business Administration, 2002.

Copyright 2006 Prentice Hall Publishing Company Small Businesses... Make up 98.5% of all the businesses in the U.S. Employ 52% of the nation’s private sector workforce. Pay 45 % of total private payroll. Create more jobs than big businesses. Are leaders in offering training and advancement opportunities to workers. Copyright 2006 Prentice Hall Publishing Company

Copyright 2006 Prentice Hall Publishing Company Small Businesses... Produce 51% of the nation’s private GDP. Account for 47% of business sales. Create 4X more innovations per R & D dollar spent than medium-sized firms and 24X as many as large companies. Create two-thirds of all new inventions. Produce 13X to 14X more patents per employees than large companies. Copyright 2006 Prentice Hall Publishing Company

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

Eleven Deadly Mistakes of Entrepreneurship Management incompetence Lack of experience Forcing a flawed idea Undercapitalization Poor cash management Failure to develop a strategic plan Copyright 2006 Prentice Hall Publishing Company

Eleven Deadly Mistakes of Entrepreneurship Weak marketing effort Uncontrolled growth Poor location Lack of inventory control Inability to make the “entrepreneurial transition” Copyright 2006 Prentice Hall Publishing Company

Putting Failure Into Perspective Entrepreneurs are not paralyzed by the prospect of failure. Failure – a natural part of the creative process. Successful entrepreneurs learn to fail intelligently. Copyright 2006 Prentice Hall Publishing Company

Avoiding the Pitfalls of Small Business Failure Know your business in depth Prepare a solid business plan Manage financial resources Understand financial statements Copyright 2006 Prentice Hall Publishing Company

Avoiding the Pitfalls of Small Business Failure Learn to manage people effectively Set your business apart from the competition Keep in tune with yourself Copyright 2006 Prentice Hall Publishing Company