Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    Entrepreneurship and Small Business CHAPTER 5

    Uploaded by

    Estiphanos Get
    This document discusses entrepreneurship, small businesses, and preparing for starting a business. It defines entrepreneurs as individuals who start businesses to meet needs and take on risks to increase business value. Most businesses in the US are small businesses, which are independently owned with fewer than 500 employees. The document outlines advantages like flexibility but also disadvantages like responsibility and risk of failure for small businesses and entrepreneurship. It stresses the importance of careful planning, including developing a written business plan covering aspects like marketing, management, and financial projections.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Entrepreneurship and Small Business CHAPTER 5

    Uploaded by

    Estiphanos Get
    14 views12 pages
    This document discusses entrepreneurship, small businesses, and preparing for starting a business. It defines entrepreneurs as individuals who start businesses to meet needs and take on risks to increase business value. Most businesses in the US are small businesses, which are independently owned with fewer than 500 employees. The document outlines advantages like flexibility but also disadvantages like responsibility and risk of failure for small businesses and entrepreneurship. It stresses the importance of careful planning, including developing a written business plan covering aspects like marketing, management, and financial projections.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses entrepreneurship, small businesses, and preparing for starting a business. It defines entrepreneurs as individuals who start businesses to meet needs and take on risks to increase business value. Most businesses in the US are small businesses, which are independently owned with fewer than 500 employees. The document outlines advantages like flexibility but also disadvantages like responsibility and risk of failure for small businesses and entrepreneurship. It stresses the importance of careful planning, including developing a written business plan covering aspects like marketing, management, and financial projections.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    14 views12 pages

    Entrepreneurship and Small Business CHAPTER 5

    Uploaded by

    Estiphanos Get
    This document discusses entrepreneurship, small businesses, and preparing for starting a business. It defines entrepreneurs as individuals who start businesses to meet needs and take on risks to increase business value. Most businesses in the US are small businesses, which are independently owned with fewer than 500 employees. The document outlines advantages like flexibility but also disadvantages like responsibility and risk of failure for small businesses and entrepreneurship. It stresses the importance of careful planning, including developing a written business plan covering aspects like marketing, management, and financial projections.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12

    Entrepreneurship and Small

    Business

    Chapter 5
    Entrepreneurship
    • A business started by
    someone who satisfies a
    need for a good/service.
    • 1990’s online businesses
    soared
    • Virtual business or dot-com
    company operates online
    – 1995 Amazon.com started as
    online book store…now a
    leader as an online e-tailer
    Entrepreneur
    • A person who recognizes a
    business opportunity and
    organizes, manages, and
    assumes the risks of a business
    enterprise with the intent of
    increasing the market value of
    the business.
    • Take-charge, self-directed
    people
    • Risk taker
    Entrepreneur
    • Every year thousands of
    entrepreneurs start
    businesses
    • Many are successful but
    remain small
    • Many of these businesses
    will fail within a few years
    • Others will go on to become
    large corporations
    Advantages of an Entrepreneurship
    • Satisfaction from
    taking a risk and
    becoming a success
    • Showing expertise
    and skills
    • Working from home
    • Gaining Profit
    Disadvantages of an Entrepreneurship
    • Risk that they may
    fail
    • Total responsibility
    for the business
    • Long hours
    • Financial risk
    Small Business
    • Defines Small Business – an independently
    owned business that usually has the owner as
    its manager
    – Serves a limited geographic area
    – Employees fewer than 500 people
    – Not dominate in its industry
    – Most business in USA are small business –25 million
    – Employee 50% of total workforce
    – Generates more than half the nation’s income
    – Principle source of new jobs
    – Account for 38% of jobs in high technology
    Advantages of Small Business
    • Easier to form than large
    businesses
    – Require licenses for operation
    – Buildings meet zoning
    requirements
    • Being the Boss
    – Make your own decisions
    • Opportunity to offer
    services large companies
    cannot offer
    – Respond quickly to customer’s
    needs
    Disadvantages of Small Business
    • Your responsible for decisions
    made
    • Create a feeling of loneliness
    • Long hours
    • About 4 out of 5 fail in their
    first five years
    – Don’t work enough hours
    – Overprice or underprice products
    – Little or no experience
    – Trends and styles change
    – Lack managerial skills needed
    – Inadequate financial planning
    Preparing for your Own Business
    • Analyze what you want to do
    and find a way to do it…. Ask
    yourself questions
    – What will I produce?
    – Who are my main competitors?
    – Why is my product needed?
    – How much will product cost to produce?
    – How many people will I need to run the
    business?
    – What facilities will I need?
    – What licenses, permits, or other legal
    documents do I need?
    – How much money do I need to get
    started?
    Preparing for your Own Business
    • Careful planning from the
    beginning
    – Develop a BUSINESS
    PLAN –a written
    description of a new
    business venture that
    describes all aspects of
    the business
    – Essential for potential
    investors and banks for
    start-up funds
    Business Plan
    1. Summary
    1-3 pages overview of the BP
    2. Company Description
    Type of business (manufacturing, retail or service and product
    provided)
    3. Product –Service section – describe types
    4. Marketing Plan
    Likely customers and details of competition, marketing strategies,
    types and location of advertising
    5. Legal Plan –how you will organize business
    6. Management plan/Operation plan
    Key personnel and their expertise/experience
    Specify the company’s daily operations, facilities, overall personnel, materials,
    and processing requirements
    7. Financial plan
    Company’s needs and projected revenues, costs, and profits

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy