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EntrepreneurshipEleventh EditionSteve MariottiFounder,Network for Teaching EntrepreneurshipWith Tony TowleEdited by Neelam PatelPrentice HallBoston Columbus Indianapolis New York San Francisco Upper Saddle RiverAmsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

UNIT 1WHAT IS A N ENTREPRENEUR?Chapter 1Introduction to EntrepreneurshipSECTION 1.1: What Is Entrepreneurship?Entrepreneurship issues: Serial EntrepreneurshipVIII 459SECTION 1.2: Characteristics of an EntrepreneurYour Business Career: Choosing to Attend CollegeEntrepreneur Profile: Entrepreneurial Skills for Whatever You Do131821REVIEW AND ASSESSMENT22Entrepreneurs & Technology: The Internet and the World Wide Web25Chapter 226Entrepreneurship & the EconomySECTION 2.1: Importance of Entrepreneurship in the EconomyYour Business Career: Self-Awareness2731SECTION 2.2: Thinking Globally, Acting LocallyEntrepreneurship Issues: Alumni NetworksEntrepreneur Profile: Nonprofit versus Profit394045REVIEW AND ASSESSMENT46Entrepreneurs & Technology: Information Technology49Types of Business & Business OwnershipCase Study 1250SECTION 3.1: Types of BusinessYour Business Career: Career Orientation5153SECTION 3.2: Types of Business OwnershipEntrepreneurship Issues: Employee-Owned CorporationsEntrepreneur Profile: Flying into Business565965REVIEW AND ASSESSMENT66Entrepreneurs & Technology: E-Commerce69Becoming an Entrepreneur.Table of Contents70

UNIT 2PREPARING FOR BUSINESSChapter 472Business Communication74SECTION 4.1: Communicating in BusinessEntrepreneurship Issues: Web Conferencing7582SECTION 4.2: NegotiatingYour Business Career: ExpectationsEntrepreneur Profile: Spreading the Word!879297REVIEW AND ASSESSMENT98Entrepreneurs & Technology: Competing Online101Time ManagementChapter 5Goal Setting102Ethics & Social Responsibility104SECTION 5.1: Ethical Business BehaviorYour Business Career: Empathy105112SECTION 5.2: Socially Responsible Business & PhilanthropyEntrepreneurship Issues: Peace through EntrepreneurshipEntrepreneur Profile: Giving Back: We Lend A Hand115122127REVIEW AND ASSESSMENT128Entrepreneurs & Technology: E-Mail131132Table of Contents O IX

TABLE OF CONTENTSUNIT 3OPPORTUNITY RECOGNITION & MARKET ANALYSISChapter 6 Opportunity Recognition136138SECTION 6.1: What Is a Business Plan?Entrepreneurship Issues: Elevator Pitches139146SECTION 6.2: What Is a Business Opportunity?Your Business Career: RespectEntrepreneur Profile: Challenges of Being a Student Entrepreneur147151161REVIEW AND ASSESSMENT162Entrepreneurs & Technology: Web Design165Chapter 7Market Research166SECTION 71: What Is Market Research?Entrepreneurship Issues: Focus Groups167174SECTION 72: What Is Your Competitive Advantage?Your Business Career: TeamworkEntrepreneur Profile: It's All in the Details177184187REVIEW AND ASSESSMENT188Entrepreneurs & Technology: Web Domains191Table of ContentsStarting a New Business.192Business Plan for Eva's Edibles.194

UNIT 4MARKETING PLAN & SALESChapter 8Marketing Your Product208210SECTION 8.1: Developing Your Marketing MixEntrepreneurship Issues: Local Business Cooperatives211214SECTION 8.2: Promoting Your ProductYour Business Career: NetworkingEntrepreneur Profile: A New Spin on Biking223228233REVIEW AND ASSESSMENT234Entrepreneurs & Technology: Website Branding237Chapter 9Selling Your Product238SECTION 9.1: Principles of Successful SellingEntrepreneurship Issues: Customer Word-of-Mouth239243SECTION 9.2: Estimating SalesYour Business Career: Dressing for SuccessEntrepreneur Profile: E-Media Mogul249253259REVIEW AND ASSESSMENT260Entrepreneurs & Technology: Web Hosts263264Table of Contents XI

TABLE OF CONTENTSUNIT 5ANALYZING FINANCESBusiness Decisions & the Economics of One UnitXII 268SECTION 10.1: The Cost of Doing BusinessYour Business Career: Self-EsteemEntrepreneurship Issues: Carbon Credits269271272SECTION 10.2: The Economics of One Unit of Sale275Entrepreneur Profile: The "Write" BusinessCase Study 5266283REVIEW AND ASSESSMENT284Entrepreneurs & Technology: Web Content287Chapter 11 Financial Statements288SECTION 11.1: Income Statements & Cash FlowEntrepreneurship Issues: Nonprofits289291SECTION 11.2: The Balance SheetYour Business Career: ResponsibilityEntrepreneur Profile: Konspiracy Studios: Cash In, Cash Out304309315REVIEW AND ASSESSMENT316Entrepreneurs & Technology: Networks319Chapter 12 Financial Ratios & Break-Even Analysis320SECTION 12.1: Financial RatiosEntrepreneurship Issues: Entrepreneurship Blogs321324SECTION 12.2: Break-Even Analysis.7Z Your Business Career: Positive AttitudeEntrepreneur Profile: Relationship Building: The Art of Success333334337REVIEW AND ASSESSMENT338Entrepreneurs & Technology: Internet Security341Analyzing the First YearTable of Contents342

UNIT 6STARTING YOUR BUSINESSChapter 13344Financing Your Business346SECTION 13.1: Start-Up InvestmentYour Business Career: Resiliency347351SECTION 13.2: Obtaining FinancingEntrepreneurship Issues: Micro-LoansEntrepreneur Profile: All Aboard!355361365REVIEW AND ASSESSMENT366Entrepreneurs & Technology: Search Engine Optimization369Recordkeeping & Accounting370SECTION 14.1: RecordkeepingEntrepreneurship Issues: Paperless OfficesYour Business Career: Sense of Purpose371375382SECTION 14.2: Accounting SystemsEntrepreneur Profile: Do, Re, Mi: Piano Lessons with a Twist384399REVIEW AND ASSESSMENT400Entrepreneurs & Technology: Online Finance403Staffing Your Business404SECTION 15.1: Hiring DecisionsEntrepreneurship Issues: Staffing405412SECTION 15.2: Training & Motivating EmployeesYour Business Career: Comfort with DiversityEntrepreneur Profile: The Tattoo Team: Henoo416425427REVIEW AND ASSESSMENT428Entrepreneurs & Technology: Internet Promotion431Table of Contents O xifi

TABLE OF CONTENTSProtecting Your BusinessSECTION 16.1: Legal IssuesEntrepreneurship Issues: Federal Funding for Startups433437SECTION 16.2: InsuranceYour Business Career: HonestyEntrepreneur Profile: Singing Like a Pro!443448453REVIEW AND ASSESSMENT454Entrepreneurs & Technology: Internet Networking457Chapter 17 Taxes & Government Regulations458SECTION 171: Taxes & Your BusinessYour Business Career: Self-Control459468SECTION 172: Government RegulationsEntrepreneurship Issues: Socially Responsible InvestingEntrepreneur Profile: Bling-Bling Discount Fashion Jewelry471475481REVIEW AND ASSESSMENT482Entrepreneurs & Technology: Generating Leads485Case Study 6!XIV 432Table of ContentsBuilding the Business.486

UNIT 7MANAGING YOUR BUSINESS488Chapter 18 What Is Management?490SECTION 18.1: How to Manage a BusinessEntrepreneurship Issues: Think Fridays491495SECTION 18.2: Managing Expenses, Credit, & Cash FlowYour Business Career: Decision MakingEntrepreneur Profile: Planning for the Future: One Cut at a Time499504505REVIEW AND ASSESSMENT506Entrepreneurs & Technology: Website Data509Chapter 19 Managing Production, Distribution, & Operations510SECTION 19.1: Managing Production & DistributionEntrepreneurship Issues: Ideagoras—New Ways to Solve Problems511516SECTION 19.2: Managing OperationsYour Business Career: IntegrityEntrepreneur Profile: Saving Memories with Technology521524527REVIEW AND ASSESSMENT528Entrepreneurs & Technology: Spam531Chapter 20 Managing Purchasing & Inventory532SECTION 20.1: Managing PurchasingYour Business Career: Career Planning533538SECTION 20.2: Managing InventoryEntrepreneurship Issues: Inventory OptimizationEntrepreneur Profile: Helping Buyers Find Their Dream Home541545549REVIEW AND ASSESSMENT550Entrepreneurs & Technology: Auction Sites553Managing for Success554Table of Contents G XV

OF CONTENTSUNIT 8GROWING YOUR BUSINESS556 2 E 2 J Making Your Business Grow558SECTION 21.1: Planning for Business GrowthEntrepreneurship Issues: Increasing Use of Online Surveys559563SECTION 21.2: Challenges of GrowthYour Business Career: MotivationEntrepreneur Profile: Making InnerLeaf Grow: Spreading the Seeds567569571REVIEW AND ASSESSMENT572Entrepreneurs & Technology: Affiliate Marketing575Chapter 22 Franchising & Exit StrategiesCase Study 8576SECTION 22.1: Franchising & LicensingEntrepreneurship issues: Market Saturation577583SECTION 22.2: Exit StrategiesYour Business Career: Setting BoundariesEntrepreneur Profile: The Sweet Taste of Success587590599REVIEW AND ASSESSMENT600Entrepreneurs & Technology: Outsourcing603Exiting the Business.604Photo Credits606Glossary607Index.633XVITable of Contents

Entrepreneurship Eleventh Edition Steve Mariotti Founder, Network for Teaching Entrepreneurship With Tony Towle Edited by Neelam Patel Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Tow