The Dynamic Role of a Small Business Chapter 1

What did they start with? Bill Gates Sam Walton Bill Rosenberg Who are these people? Fred Deluca Richard Branson Ray Kroc Debbi Fields What did they start with?

What is a Small Business and why is it important?

Reasons for increased interest in small business Number of small businesses is ______________ rapidly Every year about 750,000 people in the US start a business Public ___________ small business Increasing _____________ at high schools and universities Growing trend toward ____________ Small business _________to all ages

Classification of Businesses by Size, According to SBA VERY SMALL Under 20 employees MEDIUM 100-499 employees SMALL 20-99 employees LARGE More than 500 employees The IRS classifies 96% of American Businesses as small

Small Business vs. Entrepreneurial Ventures

Small Business Established to further ______________and make a ___________ ______________ owned and operated not __________ in its field

Entrepreneurial Venture ___________are profitability and growth objectives achieved through innovation and __________ management ____________ may eventually become an entrepreneurial venture

Contributions of Small Business Maintain close __________ with customers and community Keep larger firms ________________ Provide employees with _____________ learning experiences Develop ___________________ Generate ___________________

PROBLEMS FACING SMALL BUSINESS Lack of Gov’t regulations (red tape) Competition from companies Management

Current Challenges to Entrepreneurs and Small Business Owners Diversity in the workforce Empowering employees Work team performance Exploding technology Occupational and industry shifts Global Challenges

Entrepreneur Characteristics Confidence Drive Risk-taker Competitive Organized OPTIMISTS

Entrepreneur ADVANTAGES Independence Satisfaction Financial Reward Self-Esteem DISADVANTAGES Failure Obstacles Loneliness Financially Insecure Long Hours Hard Work

SBA Small Business Administration Helps to start, build and grow businesses Supplies aid, counseling, assistance and protection to small businesses. www.sba.gov