1. The Winning Hand of Entrepreneurship
part 1
Entrepreneurship and Small Business 1
The Winning Hand of Entrepreneurship
PowerPoint Presentation by Charlie Cook
12e
Copyright © 2003 South-Western College Publishing.
All rights reserved.

2. Looking Ahead After studying this chapter, you should be able to:
Discuss the availability of entrepreneurial opportunities and give examples of highly successful businesses started by entrepreneurs.
Explain the entrepreneurial challenges presented by e-commerce and global changes.
Explain the nature of entrepreneurship and how it is related to small business.
Identify three motivators or rewards of entrepreneurial careers.
Copyright © by South-Western College Publishing. All rights reserved.

3. Looking Ahead (cont’d)
Describe the various types of entrepreneurs and entrepreneurial ventures.
Identify ways to gain a potential competitive edge for small entrepreneurial firms.
Discuss factors related to readiness for entrepreneurship and getting started in an entrepreneurial career.
Copyright © by South-Western College Publishing. All rights reserved.

4. Entrepreneurial Opportunities
Entrepreneurial Opportunity
A value creating innovation with market potential
A desirable and timely innovation that creates value for interested buyers and end users.
Success stories
Marketplace Holdings
Auntie Anne’s
RotoZip® Tool Corporation
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5. Who Are Entrepreneurs? Entrepreneurs are:
Persons who starts and/or operates a business.
Individuals who discover market needs and launch new firms to meet those needs.
Risk takers who provide an impetus for change, innovation, and progress.
All active owner-managers (founders and/or managers of small businesses).
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6. Entrepreneurial Challenges
E-Commerce
An outgrowth and part of the Information Age that is producing the new economy.
Globalization
The trend toward a global economy creates new competition and opportunities.
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7. What Is a Small Business?
Criteria for Defining Smallness in Business
Financing supplied by one person or small group
Localized business operations (except marketing)
Business’ size small relative to larger competitors
Fewer than 100 employees
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8. Entrepreneurial Incentives
Profit
Freedom from the limits
of standardized pay for
standardized work
Independence
Freedom from supervision
and rules of bureaucratic organizations
Escape from an oppressive culture
Personal Fulfillment
Freedom to achieve a
satisfying way of life
Escape from routine
and unchallenging work
Rewards of Entrepreneurship
Make Money
Be Your Own Boss
Enjoy a Satisfying Life
Fig. 1.2
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9. Entrepreneurial Refugees
Foreign refugee
Corporate refugee
Parental refugee
Feminist refugee
Housewife refugee
Society refugee
Educational refugee
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10. Varieties of Entrepreneurship
Founder (“Pure” Entrepreneur)
A person who brings a new firm into existence.
Administrative Entrepreneur
An entrepreneur who overseas the operations of a ongoing business
Franchisee
An entrepreneur whose power is limited by the contractual relationship with a franchising organization.
Entrepreneurial Team
Two or more people who work together as entrepreneurs.
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11. Small Businesses, Growth, and Profits
High-Potential Venture (Gazelle)
A small firm that has great prospects for growth.
Attractive Small Firm
A small firm that provides substantial profits to its owner.
Microbusiness
A small firm that provides minimal profits to its owner.
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12. Characteristics of Artisan Entrepreneurs
Technical training
Paternalistic approach
Reluctance to delegate
Narrow view of strategy
Personal sales effort
Short planning horizon
Simple record keeping
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13. Characteristics of Opportunistic Entrepreneurs
Broad-based education
Scientific approach to problems
Willing to delegate
Broad view of strategy
Diversified marketing approach
Longer planning horizon
Sophisticated accounting and financial control
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14. Women Entrepreneurs More Women Entrepreneurs
Women own 38% of all U.S. businesses.
Employment at female-owned firms has grown 108% since 1992.
Women are moving into nontraditional industries.
Problems Facing Female Entrepreneurs
Newness of entrepreneurial role
Lack of access to credit
Lack of personal networking connections in the established business community
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15. Competitive Advantages of Entrepreneurial Firms
Customer Focus
Lack of bureaucracy
Quality Performance
Quality is not limited to large firms
Integrity and Responsibility
A solid reputation builds loyal customers
Innovation
Small firms are the leading source of innovation.
Low-Cost Production
Sound management can lead to lower operating costs.
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16. Age Concerns in Starting a Business
Early Career Concerns
1. Getting an education
2. Gaining work experience
3. Acquiring financial resources
Late Career Concerns
1. Fulfilling family responsibilities
2. Attaining seniority in employment
3. Earning investment in a retirement program 25 35 45 20
Fig 1.3
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17. Characteristics of Successful Entrepreneurs
Strong commitment to the business (tenacity)
Strong internal locus of control (self-reliant)
Moderate risk takers (financial, career, psychic risks)
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18. Types of Entrepreneurial Career Opportunities
Opportunity Level of Risk
Starting a business High risk
Buying a business Medium risk
Opening a franchised business Medium risk
Entering a family business Variable risk
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19. Taking the Plunge Precipitating Event
An event, such as losing a job, that moves an individual to become an entrepreneur.
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