What’s An Entrepreneur Unit 1

Course Goal The goal of this course is to give considerable attention to introductory concepts of planning, financing, and starting a new business. You will gain an understanding of how entrepreneurship plays a role in the new global economy, how to explore new business ideas and how to write a business plan.

Let’s Get Started! The US economy includes thousands of small businesses. Many of these businesses were created by men and women just like you! It is not impossible! So lets explore and learn how you can own your own business someday!

What’s An Entrepreneur Dictionary: French word entreprendre “to undertake” Mirriam-Webster - one who organizes, manages, and assumes the risks of a business enterprise –Source:

What’s An Entrepreneur Perception: Concept has a wide range of meanings Person of very high aptitude who pioneers change –Only a small portion of the population has this characteristic OR anyone who wants to work for himself or herself can be considered an entrepreneur –Source:

Exercise 1-1 Write down your definition of an entrepreneur Write down an example of a small business with which you are familiar or have read about –Ex: drycleaners, a family business Homework: SBA Website look up

Definition of “Small Business” Husband and wife team running a baker in Holland Large IT company with 75 employees and millions in sales Both could be small businesses

Business Size SEE PDF SIZE CHART Can be assessed in a number of ways # of employees and revenues

The Small Business Administratrion A federally-funded government agency providing loans and assistance to small businesses

The Small Business Act and NAICS SBA adheres to the Small Business Act Independently owned & operated –Cannot be part of Coca-Cola Not dominant in its field of operation –Google Definition will vary from industry to industry –Size chartSize chart

Rule of Thumb SBA definitions: 500 or fewer employees Could be as large as $30 million or have as many as 1000 employees 4 out of 5 businesses have fewer than 20 people working in them –Source: Dennis, William J., “NFIB Small Business Policy Guide” Nov., 2000

Other Important Info Federal agencies must use the SBA’s size standards when awarding contracts to small businesses Many private companies also use the SBA’s standards, although, some develop their own Financial institutions, including the SBA, will award “small business loans” Clients may be interested in this info, it’s important to be aware and educated on this info.

Exercise 1-2a Why does the definition of a small business matter?