1-11-1 visit umt online at 2007 umt entrepreneurship university of management and technology 1901...
DESCRIPTION
1-3 Visit UMT online at © 2007 UMT The World of the Entrepreneur A new business is born every 11 seconds in the U.S. Study of influential Americans – the defining issue of the 21 st Century: Entrepreneurship! One of 12 Americans is actively involved in trying to start a new business.TRANSCRIPT
1-1Visit UMT online at www.umtweb.edu© 2007 UMT
ENTREPRENEURSHIPENTREPRENEURSHIP
University of Management and Technology1901 N. Fort Myer Drive
Arlington, VA 22209 USAPhone: (703) 516-0035
Fax: (703) 516-0985Website: www.umtweb.edu
1-2Visit UMT online at www.umtweb.edu© 2007 UMT
CHAPTER 1:CHAPTER 1:The Foundations of The Foundations of EntrepreneurshipEntrepreneurship
Zimmerer, T. W and Scarborough, Zimmerer, T. W and Scarborough, N. M. N. M. Essentials of Essentials of
Entrepreneurship and Small Entrepreneurship and Small Business Management (3rd ed.)Business Management (3rd ed.)
Prentice Hall © 2002.Prentice Hall © 2002.
1-3Visit UMT online at www.umtweb.edu© 2007 UMT
The World of the EntrepreneurThe World of the Entrepreneur
A new business is born every 11 seconds in the U.S.Study of influential Americans – the defining issue of the 21st Century: Entrepreneurship!One of 12 Americans is actively involved in trying to start a new business.
1-4Visit UMT online at www.umtweb.edu© 2007 UMT
Entrepreneurial Activity Across Entrepreneurial Activity Across the Globethe Globe
1.4%
1.6%
1.8%
2.0%
2.2%
3.3%
3.4%
5.4%
6.8%
8.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Percent
Finland
J apan
France
Denmark
Germany
Great Britain
Italy
Israel
Canada
United States
Cou
ntry
Percentage of Adult Population Working to Start a New Business
1-5Visit UMT online at www.umtweb.edu© 2007 UMT
What is an Entrepreneur?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.
1-6Visit UMT online at www.umtweb.edu© 2007 UMT
Characteristics of EntrepreneursCharacteristics of Entrepreneurs
Desire for responsibilityPreference for moderate riskConfidence in their ability to succeedDesire for immediate feedbackHigh level of energyFuture orientationSkilled at organizingValue achievement over money
1-7Visit UMT online at www.umtweb.edu© 2007 UMT
Benefits of Small Business Benefits of Small Business OwnershipOwnership
The opportunity to:create your own destinymake a differencereach your full potentialreap unlimited profitscontribute to society and to be recognized for your effortsdo what you enjoy and to have fun at it
1-8Visit UMT online at www.umtweb.edu© 2007 UMT
Drawbacks of Small Business Drawbacks of Small Business OwnershipOwnership
Uncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business gets establishedHigh levels of stressComplete responsibilityDiscouragement
1-9Visit UMT online at www.umtweb.edu© 2007 UMT
Feeding the Feeding the Entrepreneurial FireEntrepreneurial Fire
Entrepreneurs as heroesEntrepreneurial educationDemographic and economic factorsShift to a service economyTechnological advancementsIndependent lifestylesE-Commerce and the World Wide WebInternational opportunities
1-10Visit UMT online at www.umtweb.edu© 2007 UMT
The Cultural Diversity of The Cultural Diversity of EntrepreneurshipEntrepreneurship
Young EntrepreneursWomenMinority-owned enterprisesImmigrant entrepreneursPart-time entrepreneursHome-based businessesFamily businessesCopreneursCorporate castoffsCorporate dropouts
1-11Visit UMT online at www.umtweb.edu© 2007 UMT
Small Business by Industry
Services39.2%
Retail20.5%
Wholesale7.4%
Manufacturing5.8%
Construction11.8%
Financial8.0%
Other7.3%
1-12Visit UMT online at www.umtweb.edu© 2007 UMT
Small Businesses...Small Businesses...
make up 99% of all the businesses in the U.S.employ 53% of the nation's private sector workforce.create more jobs than big businesses.are leaders in offering training and advancement opportunities to workers.
1-13Visit UMT online at www.umtweb.edu© 2007 UMT
Small Businesses...Small Businesses...
produce 51% of the nation's private GDP.account for 47% of business sales.create 4X more innovations per R & D dollar spent than medium-sized firms and 24X as many as large companies.
1-14Visit UMT online at www.umtweb.edu© 2007 UMT
0%
20%
40%
60%
80%
100%
% o
f Sm
all F
irms
Surv
ivin
g
New 2 4 6 8 10
# of Years in Business
Small Business Survival Rate
1-15Visit UMT online at www.umtweb.edu© 2007 UMT
The Small Business The Small Business Failure RecordFailure Record
24% of new businesses fail after two years.51% fail within four years.63% fail within six years.
1-16Visit UMT online at www.umtweb.edu© 2007 UMT
Nine Deadly Mistakes of Nine Deadly Mistakes of EntrepreneurshipEntrepreneurship
Management incompetenceLack of experiencePoor financial controlFailure to develop a strategic planUncontrolled growth
1-17Visit UMT online at www.umtweb.edu© 2007 UMT
Nine Deadly Mistakes of Nine Deadly Mistakes of EntrepreneurshipEntrepreneurship
Poor locationImproper inventory controlIncorrect pricingInability to make the “entrepreneurial transition”
1-18Visit UMT online at www.umtweb.edu© 2007 UMT
Avoiding the Pitfalls of Avoiding the Pitfalls of Small Business FailureSmall Business Failure
Know your business in depthDevelop a solid business planManage financial resourcesUnderstand financial statementsLearn to manage people effectivelyKeep in tune with yourself