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ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship11- 1Copyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education IncSection 1: The Challenge of Entrepreneurship1The Foundationsof EntrepreneurshipCopyright 2016 Pearson Education, Inc.1-2 Define the role of the entrepreneur inbusiness in the United States and around theworld. Describe the entrepreneurial profile. Describe the benefits of entrepreneurship. Describe the drawbacks of entrepreneurship. Explain the forces that are driving the growthof entrepreneurship.Copyright 2016 Pearson Education, Inc.1-31
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship(continued) Explain the cultural diversity ofentrepreneurship. Describe the important role that smallbusinesses play in our nation’s economy. Put failure into the proper perspective. Explain how an entrepreneur can avoidbecoming another failure statistic.Copyright 2016 Pearson Education, Inc.1-4 Every month U.S. entrepreneurs launch514,000 new businesses. Entrepreneurial spirit - the most significanteconomic development in recent history. GEM study: 12.7% of adult population in theUnited States is actively involved in trying tostart a new business.Copyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education, Inc.1-51-62
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc.1-7 Global Entrepreneurship Monitor (GEM) study: Men are twice as likely to start a business aswomen. Entrepreneurs are most likely to launchbusinesses when they are between the ages of35 and 44. Most people see entrepreneurial activity as agood career choice.Copyright 2016 Pearson Education, Inc.1-8 Entrepreneur: One who creates a new business in the face ofrisk and uncertainty for the purpose ofachieving profit and growth by identifyingopportunities and assembling the necessaryresources to capitalize on them.Copyright 2016 Pearson Education, Inc.1-93
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc. Desire forresponsibility Preference formoderate levels ofrisk: risk eliminators Self-reliance Confidence in theirability to succeed Determination Desire for immediatefeedback1 - 10 High level of energy Future orientation Opportunityentrepreneurs Necessityentrepreneurs Serial entrepreneurs Skilled at organizing Value achievement overmoneyCopyright 2016 Pearson Education, Inc.1 - 11 Entrepreneurs tend to exhibit: A high degree of commitment Tolerance for ambiguity Creativity Flexibility Resourcefulness A willingness to work hard TenacityCopyright 2016 Pearson Education, Inc.1 - 124
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc.1 - 13 One characteristic of entrepreneurs standsout: diversity! Anyone – regardless of age, race, gender,color, national origin, or any othercharacteristic – can become anentrepreneur (although not everyoneshould).Copyright 2016 Pearson Education, Inc.1 - 14 The opportunity to:Create your own destiny.Make a difference.Reach your full potential.Reap impressive profits.Contribute to society and to be recognizedfor your efforts. Do what you enjoy and to have fun at it. Copyright 2016 Pearson Education, Inc.1 - 155
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the businessgets established High levels of stressCopyright 2016 Pearson Education, Inc.1 - 16Copyright 2016 Pearson Education, Inc.1 - 17(continued from 1-16)Uncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business getsestablished High levels of stress Complete responsibility Discouragement Copyright 2016 Pearson Education, Inc.1 - 186
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technology advancements Independent lifestyle The Internet, cloud computing, andmobile marketingCopyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education, Inc.1 - 191 - 20(continued from 1-19)Entrepreneurs as heroesEntrepreneurial educationDemographic and economic factorsShift to a service economyTechnology advancementsIndependent lifestyleThe Internet, cloud computing, and mobilemarketing International opportunities Copyright 2016 Pearson Education, Inc.1 - 217
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship Young entrepreneurs Women entrepreneursCopyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education, Inc.1 - 221 - 23(continued from 1-22) Young entrepreneurs Women entrepreneurs Minority-owned enterprisesCopyright 2016 Pearson Education, Inc.1 - 248
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc.1 - 25(continued from 1-24) Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneursCopyright 2016 Pearson Education, Inc.1 - 26(continued) Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts Retiring baby boomersCopyright 2016 Pearson Education, Inc.1 - 279
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc.1 - 28 Small businesses: Make up 99.7% of the 27.8 million businessesin the United States Employ 49.2% of the nation’s private sectorworkforce Create more jobs than big businesses Created 64% of net new jobs over the lastdecade 5% of small companies create 67% of netnew jobs in the economy GazellesCopyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education, Inc.1 - 291 - 3010
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship(continued from 1-29) Small businesses: Produce 46% of the nation’s private GDP. Account for 47% of business sales. Create 16 times more patents per employeesthan large companies. Zipper, light bulb, FM radio, laser, airconditioning, escalator, personal computer,automatic transmission, and many more!Copyright 2016 Pearson Education, Inc.1 - 31 Entrepreneurs are not paralyzed by theprospect of failure. Failure: a natural part of the creative process. Successful entrepreneurs learn to failintelligently.Copyright 2016 Pearson Education, Inc.Copyright 2016 Pearson Education, Inc.1 - 321 - 3311
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of Entrepreneurship Know your business in depth Build a viable business model – and test it Develop a solid business plan Understand financial statements Manage financial resources Learn to manage people effectively Set your business apart from the competition Maintain a positive attitudeCopyright 2016 Pearson Education, Inc.1 - 34 Entrepreneurs: Are an important part of the free enterprisesystem Are a diverse and talented group of people Represent a cross-section of society as awhole Are able to enhance the profitability oftheir businesses through acquiringadditional knowledge and experienceCopyright 2016 Pearson Education, Inc.1 - 35Chapter 2: Ethics and Social ResponsibilityChapter 3: Inside the Entrepreneurial Mind:From Ideas to RealitySection 2: The Entrepreneurial Journey BeginsSection 3: Launching a BusinessSection 4: Growing the BusinessCopyright 2016 Pearson Education, Inc.1 - 3612
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENTChapter 1: The Foundations of EntrepreneurshipCopyright 2016 Pearson Education, Inc.1 - 3713
ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Chapter 1: The Foundations of Entrepreneurship 11 Small businesses: Produce 46% of the nation's private GDP. Account for 47% of business sales. Create 16 times more patents per employees than large companies. Zipper, light bulb, FM radio, laser, air
