1. Strayer University IT/Entrepreneurs ( SUITE) Club Sept 11 th 2010 Seminar Prof. Mort Anvari

2. Mort Anvari 2 The World of the Entrepreneur Every year in the U.S., entrepreneurs launch 850,000 new businesses. Every year in the U.S., entrepreneurs launch 850,000 new businesses. Entrepreneurial spirit - the most significant economic development in recent history. Entrepreneurial spirit - the most significant economic development in recent history. GEM study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business. GEM study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business.

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4. 4 The World of the Entrepreneur GEM study GEM study Globally 9.4 percent of adults are actively engaged in trying to start a business. Globally 9.4 percent of adults are actively engaged in trying to start a business. Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however). Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however). Nearly one-third of global entrepreneurs are between the ages of 25 and 44. Nearly one-third of global entrepreneurs are between the ages of 25 and 44.

5. Mort Anvari 5 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.

6. Mort Anvari 6 Characteristics of Entrepreneurs Desire for responsibility Desire for responsibility Preference for moderate risk – risk eliminators Preference for moderate risk – risk eliminators Confidence in their ability to succeed Confidence in their ability to succeed Desire for immediate feedback Desire for immediate feedback High level of energy High level of energy Future orientation – serial entrepreneurs Future orientation – serial entrepreneurs Skilled at organizing Skilled at organizing Value achievement over money Value achievement over money

7. Mort Anvari 7 Entrepreneurship One characteristic of entrepreneurs stands out: 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). Anyone – regardless of age, race, gender, color, national origin, or any other characteristic – can become an entrepreneur (although not everyone should).

8. Mort Anvari 8 Benefits of Entrepreneurship The opportunity to: Create your own destiny Create your own destiny Make a difference Make a difference Reach your full potential Reach your full potential Reap impressive profits Reap impressive profits Contribute to society and to be recognized for your efforts Contribute to society and to be recognized for your efforts Do what you enjoy and to have fun at it Do what you enjoy and to have fun at it

9. Mort Anvari 9 Drawbacks of Entrepreneurship Uncertainty of income Uncertainty of income Risk of losing your entire investment Risk of losing your entire investment Long hours and hard work Long hours and hard work

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11. 11 Drawbacks of Entrepreneurship Uncertainty of income Uncertainty of income Risk of losing your entire investment Risk of losing your entire investment Long hours and hard work Long hours and hard work Lower quality of life until the business gets established Lower quality of life until the business gets established

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13. 13 Drawbacks of Entrepreneurship Uncertainty of income Uncertainty of income Risk of losing your entire investment Risk of losing your entire investment Long hours and hard work Long hours and hard work Lower quality of life until the business gets established Lower quality of life until the business gets established High levels of stress High levels of stress Complete responsibility Complete responsibility Discouragement Discouragement

14. Mort Anvari 14 Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurs as heroes Entrepreneurial education Entrepreneurial education Demographic and economic factors Demographic and economic factors Shift to a service economy Shift to a service economy Technological advancements Technological advancements Independent lifestyle Independent lifestyle E-commerce and the World Wide Web E-commerce and the World Wide Web

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16. 16 Feeding the Entrepreneurial Fire Entrepreneurs as heroes Entrepreneurs as heroes Entrepreneurial education Entrepreneurial education Demographic and economic factors Demographic and economic factors Shift to a service economy Shift to a service economy Technological advancements Technological advancements Independent lifestyles Independent lifestyles E-commerce and the World Wide Web E-commerce and the World Wide Web International opportunities International opportunities

17. Mort Anvari 17 The Cultural Diversity of Entrepreneurship Young entrepreneurs Young entrepreneurs Women entrepreneurs Women entrepreneurs

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19. 19 The Cultural Diversity of Entrepreneurship Young entrepreneurs Young entrepreneurs Women entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Immigrant entrepreneurs Part-time entrepreneurs Part-time entrepreneurs

20. Mort Anvari 20 The Cultural Diversity of Entrepreneurship Home-based businesses Home-based businesses Family businesses Family businesses Copreneurs Copreneurs Corporate castoffs Corporate castoffs Corporate dropouts Corporate dropouts

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22. 22 Small Businesses... Make up 99.7 percent of all businesses in the U.S. Make up 99.7 percent of all businesses in the U.S. Employ 51 percent of the nation’s private sector workforce. Employ 51 percent of the nation’s private sector workforce. Create more jobs than big businesses. Create more jobs than big businesses. Are leaders in offering training and advancement opportunities to workers. Are leaders in offering training and advancement opportunities to workers.

23. Mort Anvari 23 Produce 51 percent of the nation’s private GDP. Produce 51 percent of the nation’s private GDP. Account for 47 percent of business sales. Account for 47 percent of business sales. Create 13X more innovations per employee than large companies. Create 13X more innovations per employee than large companies. Zipper, FM radio, laser, air conditioning, escalator, light bulb, personal computer, automatic transmission, and many more! Zipper, FM radio, laser, air conditioning, escalator, light bulb, personal computer, automatic transmission, and many more! Small Businesses...

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25. 25 Ten Deadly Mistakes of Entrepreneurship 1. Management mistakes 2. Lack of experience 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan

26. Mort Anvari 26 Ten Deadly Mistakes of Entrepreneurship 6. Uncontrolled growth 7. Poor location 8. Improper inventory control 9. Incorrect pricing 10. Inability to make the “entrepreneurial transition”

27. Mort Anvari 27 Putting Failure into Perspective Entrepreneurs are not paralyzed by the prospect of failure. Entrepreneurs are not paralyzed by the prospect of failure. Failure – a natural part of the creative process. Failure – a natural part of the creative process. Successful entrepreneurs learn to fail intelligently. Successful entrepreneurs learn to fail intelligently.

28. Mort Anvari 28 Avoiding the Pitfalls of Small Business Failure Know your business in depth Know your business in depth Develop a solid business plan Develop a solid business plan Manage financial resources Manage financial resources Understand financial statements Understand financial statements Learn to manage people effectively Learn to manage people effectively Keep in tune with yourself Keep in tune with yourself