McGraw-Hill/Irwin 1-1 © 2006 The McGraw-Hill Companies, Inc All rights rese Business v Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Characteristics of Entrepreneurs Chapter Starting Your Small Business Ryan McVay/Getty Images 1-2 Rapid Small Business Growth 23 Million Employment 75% Of New Jobs 50% Of Private Employment 99% Of Employers 97% Of Exporters McGraw-Hill/Irwin 1-3 © 2006 The McGraw-Hill Companies, Inc All rights rese Entrepreneurship Today Male- 1.9 Men Per Woman Ethnically Diverse 25-34 Specialty Expertise Rim Light/PhotoLink/Getty Images $100 B For 3.5 M Startup/Small Businesses McGraw-Hill/Irwin 1-4 © 2006 The McGraw-Hill Companies, Inc All rights rese Public Favors Small Business Black Enterprise- http://www.blackenterprise.com Entrepreneur Inc Hispanic Business- http://www.hispanicbusiness.com Family Business Entrepreneurial Woman Royalty-Free/CORBIS Your Company Etc McGraw-Hill/Irwin 1-5 © 2006 The McGraw-Hill Companies, Inc All rights rese Interest At Schools Courses 20 Years Ago- None Now- Hundreds Ages 13-18 = Positive Potential Business Career Males = 13% Females = 10% McGraw-Hill/Irwin 1-6 © 2006 The McGraw-Hill Companies, Inc All rights rese Entrepreneurial Student Organizations Association of College Entrepreneurs University Entrepreneurial Association Students in Free Enterprise - http:// www.sife.org McGraw-Hill/Irwin 1-7 © 2006 The McGraw-Hill Companies, Inc All rights rese Self-Employment Trend Increased Investor Interest Executives Taking Early Retirement 55% Want To Be Own Boss Technological Advances Photodisc Collection/Getty Images McGraw-Hill/Irwin 1-8 © 2006 The McGraw-Hill Companies, Inc All rights rese Attractive To All Ages More Than ½ Of Independent Workers In NYC College-Educated 25- 40 Years Old 84% Of Entrepreneurs “Not Worried About Future” 40% Have Management Experience ¼ Managed/Owned Business Before Doug Menuez/Getty Images McGraw-Hill/Irwin 1-9 © 2006 The McGraw-Hill Companies, Inc All rights rese Small Business? Independent Management Capital/Ownership = Few Individuals Operations Are Local Business = Small But Competitors = Large McGraw-Hill/Irwin Hisham F Ibrahim/Getty Images 1-10 © 2006 The McGraw-Hill Companies, Inc All rights rese Challenges To Small Business Exploding Technology Occupational/Industry Shifts Reinvention Reengineered Chad Baker/Ryan McVay/Getty Images Downsizing/Rightsizing Global McGraw-Hill/Irwin 1-17 © 2006 The McGraw-Hill Companies, Inc All rights rese Declining Job Types McGraw-Hill/Irwin 1-18 © 2006 The McGraw-Hill Companies, Inc All rights rese Why Start A Small Business? McGraw-Hill/Irwin 1-19 © 2006 The McGraw-Hill Companies, Inc All rights rese Why To Not Start A Small Business? McGraw-Hill/Irwin 1-20 © 2006 The McGraw-Hill Companies, Inc All rights rese Job Satisfaction McGraw-Hill/Irwin 1-21 © 2006 The McGraw-Hill Companies, Inc All rights rese Objectives Of Small Business Owners Achieve Independence Additional Income Help Families Ryan McVay/Getty Images Products Not Available McGraw-Hill/Irwin 1-22 © 2006 The McGraw-Hill Companies, Inc All rights rese Checklist For Aspiring Entrepreneurs Passion Not Money Something You Know Patience Mentor Funding McGraw-Hill/Irwin Cash Manager Build Sales Don’t Rush Wary Of Bad Advice/Suppliers 1-23 © 2006 The McGraw-Hill Companies, Inc All rights rese Business Objectives Service Profit Social Growth Nick Rowe/Getty Images Mesh Objectives McGraw-Hill/Irwin 1-24 © 2006 The McGraw-Hill Companies, Inc All rights rese Characteristics Of Successful Owners + Desire Independence + Strong Sense Of Initiative + Personal/Family Motivation + Quick/Concrete Results McGraw-Hill/Irwin + Able To React Quickly + Dedicated To Business + Enter Business By Chance And/Or Design 1-25 © 2006 The McGraw-Hill Companies, Inc All rights rese Successful Small Business Management Adequate Market Sufficient Capital Recruit Effectively Timely Information Ryan McVay/Getty Images Cope With Gov’t Regs Expertise Flexible McGraw-Hill/Irwin 1-26 © 2006 The McGraw-Hill Companies, Inc All rights rese Personal Analysis Values Mental Abilities Attitudes McGraw-Hill/Irwin Mel Curtis/Getty Images 1-27 © 2006 The McGraw-Hill Companies, Inc All rights rese Where Are the New Jobs? McGraw-Hill/Irwin 1-28 © 2006 The McGraw-Hill Companies, Inc All rights rese Factors Affecting Industry/Business 1) 2) 3) 4) 5) McGraw-Hill/Irwin Economics Technology Lifestyle Political Demographics Royalty-Free/CORBIS 1-29 © 2006 The McGraw-Hill Companies, Inc All rights rese Ideas For Small Business Career Counseling Catering Computer & Office Machine Repair Day Care Education McGraw-Hill/Irwin Financial Planning Home Health Marketing Senior Fitness & Recreation Specialized Delivery 1-30 © 2006 The McGraw-Hill Companies, Inc All rights rese Small Business Concerns Poorly Planned Growth Loss Of Independence Threat Of Failure Discontinuance McGraw-Hill/Irwin Types Formal Personal/Informal Jim Arbogast/Getty Images 1-31 © 2006 The McGraw-Hill Companies, Inc All rights rese .. .Business v Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Characteristics of Entrepreneurs Chapter Starting Your Small Business Ryan McVay/Getty... React Quickly + Dedicated To Business + Enter Business By Chance And/Or Design 1-25 © 2006 The McGraw-Hill Companies, Inc All rights rese Successful Small Business Management Adequate Market... Have Management Experience ¼ Managed/Owned Business Before Doug Menuez/Getty Images McGraw-Hill/Irwin 1-9 © 2006 The McGraw-Hill Companies, Inc All rights rese Small Business? Independent Management