CHAPTER 6 ENTREPRENEURSHIP AND SMALL BUSINESS Introduction to Management 13th edition... ENTREPRENEURSHIP AND SMALL BUSINESS A small business has fewer than 500 employees... ENTREPRENEUR
Trang 1CHAPTER 6 ENTREPRENEURSHIP AND SMALL BUSINESS
Introduction to Management
13th edition
Trang 2PLANNING AHEAD – KEY TAKEAWAYS
Define entrepreneurship and identify
entrepreneurs
common problems they face
Explain how entrepreneurs plan, legally
structure, and fund new business ventures
Trang 3CHAPTER 6 OUTLINE
Trang 4CHAPTER 6 OUTLINE
1. Life cycles of entrepreneurial firms
Trang 5THE NATURE OF ENTREPRENEURSHIP
• Starts and runs business and nonprofits over
and over again
First-mover advantage
Trang 6THE NATURE OF ENTREPRENEURSHIP
Intrapreneurs
Display entrepreneurial behavior as
employees of larger firms
Trang 7FIGURE 6.1 PERSONALITY TRAITS AND
CHARACTERISTICS OF
ENTREPRENEURS
Trang 8THE NATURE OF ENTREPRENEURSHIP
Female and minority entrepreneurs are
growing in numbers
Necessity-based entrepreneurship
employment opportunities exist
Trang 9THE NATURE OF ENTREPRENEURSHIP
Social entrepreneurship
– Unique form of ethical entrepreneurship that
seeks new ways to solve pressing social
problems
social problems such as poverty, literacy, illness, homelessness
Trang 10ENTREPRENEURSHIP AND SMALL
BUSINESS
A small business has fewer than 500 employees
Trang 11ENTREPRENEURSHIP AND SMALL
BUSINESS
Starting a small business
• One business owner sells to another the right to operate the
same business in another location
Trang 12ENTREPRENEURSHIP AND SMALL
BUSINESS
Why small businesses fail
– SBA reports that about 50% of new businesses fail in first five
- Growing too fast
- Poor financial control
Trang 13FIGURE 6.2 EIGHT REASONS WHY MANY SMALL BUSINESSES FAIL
Trang 14ENTREPRENEURSHIP AND SMALL
BUSINESS
Family-owned small businesses
– Account for 78% of new jobs created in the U.S.
– Provide 60% of the nation’s employment
– Feuds result when family members disagree over how the
business is run
– Possible succession problems
• Who will run the business when the current head leaves?
• Succession plan outlines leadership transition and financial matters
Trang 15ENTREPRENEURSHIP AND SMALL
Founded with U.S Small Business Administration to provide advice to new and existing small businesses
Trang 16FIGURE 6.3 STAGES IN THE LIFE CYCLE OF
AN ENTREPRENEURIAL FIRM
Trang 17NEW VENTURE CREATION
Business plan
Describes the direction for a new business
and the financing needed to operate it
plan before loaning money
Trang 18NEW VENTURE CREATION
Sample Business Plan Outline:
Trang 19NEW VENTURE CREATION
Forms of ownership
Sole Proprietorship
for a profit This does not involve incorporation.
Trang 20NEW VENTURE CREATION
Forms of ownership
– Partnership
to start and operate a business together
Trang 21NEW VENTURE CREATION
Forms of ownership
– Corporation
– Benefit Corporation (B Corp)
are to combine making a profit with benefiting society and the environment combination of sole proprietorship, partnership, and corporation
Trang 22NEW VENTURE CREATION
Forms of ownership
– Limited Liability Corporation (LLC)
Trang 23NEW VENTURE CREATION
Financing
bank, or a financial institution
investment monies
– Venture Capitalists
in return for an equity stake in the business
Trang 24NEW VENTURE CREATION
Financing
– Angel Investor
equity in a new venture
get startup financing from crowds of investors