1. Part 1: Dynamic Role of Small Business
Starting Your Small Business
Family-Owned Businesses
Forms of Ownership of Small Business
Maintaining Good Government Relations and Business Ethics
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

2. Copyright © 2009 McGraw-Hill Companies, Inc.: BE 322 Ms Tabinda Zabin
Part I: Chapter 1
Chapter 1 covers material to help you decide whether pursuing a career in small business is the right course of action for you
Chapter 1
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Starting Your Small Business
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

3. Copyright © 2009 McGraw-Hill Companies, Inc.: BE 322 Ms Tabinda Zabin
Learning Objectives 1
Chapter
Define ‘business’
Contributions of small business
Current problems small business face
Current trends challenging entrepreneurs & small business
Why do people start small business?
Characteristics of ‘entrepreneurs’
Opportunities & concerns of small
business
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Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin
1 - 3

4. Business classification by size
Under 20 employees
Very Small
Small
100 – 499
Medium
500 Or More
Large

5. Terms in SBA: small business administration pg. 9
Small business (micro business)
Small business owner
Establishes a business to further personal goals, such as profitability and fame
Entrepreneur:
Business owner whose goals include achievement, profit, growth, achieved through innovation and strategic management
Entrepreneurial venture:
Business owner’s principal objectives are profitability and growth
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

6. Define ‘Small Business’
It is independently owned and operated and is not dominant in its field of operation.
Independent Management
Capital/Ownership = Few Individuals
Operations are primarily local but market may have global branches
Business is small compared to its competitors
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Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

7. Why interest in Small Business? pg.4-8
Number of small businesses are growing rapidly
23 million small business in USA
Small firms generate new private employment
Public favors small business
Interest increased at high schools, colleges, and universities
Trend towards self employment
Entrepreneurship is attractive to all ages
Real world example 1.1, 1.2, 1.3
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

8. Contributions of Small Business pg.9-12
Encourage innovation & flexibility
Maintain close relationship with customers & community
Keep larger firms competitive
Provide employees with comprehensive learning experience
Develop risk takers
Generate new employment
Greater employee job satisfaction
Real world example 1.4, 1.5, 1.6
Royalty-Free/CORBIS
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

9. Most Common Home-Based Businesses
Source: Independent Insurance Agents of America

10. Current problems facing small business pg. 12-13
Recession/Current Economy
Retirement/Transition
Capital/Financing
Unexpected Growth
Succession
Inadequate Financing
Inadequate Management
Government Regulations/Paperwork
Royalty-Free/CORBIS
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

11. Challenges to small business pg. 14-15
Exploding technology
Occupational and industry shifts
Reinvention
Reengineered
Downsizing/Rightsizing
Global challenges
Real world example 1.7
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

12. Factors Affecting Industry/Business Table 1.4 pg. 23
Economics
Technology
Lifestyle
Political/Legal
Demographics
Royalty-Free/CORBIS
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Declining Job Types
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

14. Why Start A Small Business?

15. Why To Not Start A Small Business?

16. Small Business Concerns pg. 25
Poorly planned growth
Loss of independence
Threat of failure
Discontinuance
Failure
Formal
Personal/Informal
Failure occurs due to
Lack of managerial experience & financial backing
Poor location
Unexpected growth
Communication skills
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17. Job Satisfaction

18. Objectives of Small Business Owners pg. 15-19
Achieve independence
Additional income
Help families
Provide products not available elsewhere
Expertise specialty
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19. Checklist For Aspiring Entrepreneurs pg. 15-19
Passion Not Money
Something You Know
Patience
Mentor
Funding
Cash Manager
Build Sales
Don’t Rush
Wary of bad advice & suppliers/creditors
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

20. Business Objectives pg. 15-19
Service
Profit
Social
Growth
Mesh objectives (network)
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Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

21. Characteristics Of Successful Owners pg. 20
Able To React Quickly
Dedicated To Business
Enter Business By Chance And/Or Design
Desire Independence
Strong Sense Of Initiative
Personal/Family Motivation
Quick/Concrete Results
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

22. What leads to successful SBM? pg. 21
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Adequate market
Sufficient capital
Recruit effectively
Timely information
Cope with government regulations
Expertise
Flexible
NBIA – Business incubators
Nurture young firms and help them to survive and grow during the startup period when they are most vulnerable
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

23. Copyright © 2009 McGraw-Hill Companies, Inc.: BE 322 Ms Tabinda Zabin
Personal Analysis
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Values
Mental Abilities
Attitudes
Real world example 1.7, 1.8, 1.9, 1.10
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

24. Stages in the Development of Business Figure 1.5 Pg. 25
Owner
Hire manager, workers and delegates
Stage 2:
Owner-manager
workers
Stage 3
Owner – managers – workers
Size increases
Positions open up
Branch extends
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin

25. Ideas For Small Business
Career Counseling
Catering
Computer & Office Machine Repair
Day Care
Education
Financial Planning
Home Health
Marketing
Senior Fitness & Recreation
Specialized Delivery
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26. Copyright © 2009 McGraw-Hill Companies, Inc.: BE 322 Ms Tabinda Zabin
Where Are the New Jobs?
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27. Copyright © 2009 McGraw-Hill Companies, Inc.: BE 322 Ms Tabinda Zabin
Chapter 1 Review
Summary page 26-27
Learn key terms page 27
Attempt questions page 28
Case Study 1.1 page. 28
Case Study 1.2 page 29
Copyright © 2009 McGraw-Hill Companies, Inc.: BE Ms Tabinda Zabin