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2. 2 Entrepreneurial small businesses are the mainstay of economies around the world.

3. 3 Entrepreneurial companies are domestic and global, as are their potential benefits and problems.

4. 4 What is Entrepreneurship? Entrepreneurship can be practiced by individuals or companies. entrepreneurship the process of starting up a new company or business

5. 5 Individual Entrepreneurs When an entrepreneur starts a business, one of four results can occur: entrepreneur a person who starts a new business 1.The company survives but stays small. 2.The company grows and becomes a major corporation. 3.The company is purchased and merges with another company. 4.The company fails, which is the most common result.

6. 6 Advantages of Entrepreneurship Innovation and frustration can motivate individuals to start new businesses. An entrepreneur is a risk manager, not a risk taker.

7. 7 Advantages of Entrepreneurship Self-Direction and Self-Reliance FlexibilityPotential Profits

8. 8 Advantages for Others In the United States, small businesses and entrepreneurial operations provided nearly 75 percent of all new jobs in the 1990s.

9. 9 Advantages for Others Most new products and services reach the market through entrepreneurships. Small business ownership is an alternative to corporate America.

10. 10 Disadvantages of Entrepreneurship Long hours and complete responsibility for the business Owners at work or at home worrying about work Complete responsibility including potential for liability lawsuits Complete financial risk Potential problems with employees Potential loss of personal funds and investment

11. 11 Intrapreneurship The primary advantages of intrapreneurship involve financing and expertise. intrapreneurship the process of starting a new business that is spun off from an existing business

12. 12 Intrapreneurship A corporation has access to both internal and external capital. A corporation has access to well-skilled and knowledgeable employees.

13. 13 Entrepreneurial Trends The world’s cultures include both individualistic (self-oriented) and collectivist (group-oriented) cultures. Within all types of cultures, research has shown that many people would prefer to be their own bosses.

14. 14 Global Entrepreneurship A domestic company’s owner or management team may decide to engage in global entrepreneurship. global entrepreneurship the process of selling new products, starting a new operating division, or starting up a new company in another country

15. 15 Ability to Compete A company should consider its ability to compete globally on four different levels. Country LevelCompany Level Industry LevelProduct Level

16. 16 A company must examine the target country’s natural, human, and capital resources. A company must analyze the success of its industry within the target country. A company must have enough capital, staff, and relationships with companies in the target country. A company must consider competing products that already exist in the target country. Ability to Compete Country- Level Ability Industry- Level Ability Company- Level Ability Product- Level Ability

17. 17 Benefits of Global Entrepreneurship Gain increased sales Enter new and potentially profitable markets Smooth out sales by selling out-of-season goods overseas Smooth out sales by selling older versions of products overseas Benefits of Global Entrepreneurship

18. 18 Risks of Global Entrepreneurship A government could take over the company, or the government might change laws affecting the business. Political or Country Risk Economic risks include higher interest rates and rising unemployment. Economic Risk There is a greater risk of losing money when recovering an investment; or getting the money back, takes a long time. Time Risk Certain products can be risky if they are not accepted, or if competition is strong. Product Risk Recovering an investment in a business and making a profit can take several years. Financial (or Cost) Risk

19. 19 Support Systems

20. 20 International Support The World Bank helps countries develop and participate in international trade. The World Bank also supports joint ventures with companies or governments.

21. 21 International Support International exchange organizations include: The Asian Development Bank (AsDB) The European Bank for Reconstruction and Development (EBRD) The Inter-American Development Bank (IDB)

22. 22 Local Support Local support can come from: The local chamber of commerce State governments The U.S. Department of Commerce The Small Business Administration