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Ryan McVay/Getty Images . 1. Chapter. Starting Your Small Business. Business v. Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Characteristics of Entrepreneurs. Rapid Small Business Growth. 23 Million Employment 75% Of New Jobs
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Ryan McVay/Getty Images 1 Chapter Starting YourSmall Business Business v. Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Characteristics of Entrepreneurs
Rapid SmallBusiness Growth • 23 Million • Employment • 75% Of New Jobs • 50% Of Private Employment • 99% Of Employers • 97% Of Exporters
Rim Light/PhotoLink/Getty Images Entrepreneurship Today • Male- 1.9 Men Per Woman • Ethnically Diverse • 25-34 • Specialty Expertise • $100 B For 3.5 M Startup/Small Businesses
Royalty-Free/CORBIS Public FavorsSmall Business • Black Enterprise- http://www.blackenterprise.com • Entrepreneur • Inc. • Hispanic Business- http://www.hispanicbusiness.com • Family Business • Entrepreneurial Woman • Your Company • Etc.
Interest At Schools • Courses • 20 Years Ago- None • Now- Hundreds • Ages 13-18 = Positive Potential • Business Career • Males = 13% • Females = 10%
EntrepreneurialStudent Organizations • Association of College Entrepreneurs • University Entrepreneurial Association • Students in Free Enterprise - http://www.sife.org
Photodisc Collection/Getty Images Self-Employment Trend • Increased Investor Interest • Executives Taking Early Retirement • 55% Want To Be Own Boss • Technological Advances
Doug Menuez/Getty Images 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
Hisham F. Ibrahim/Getty Images Small Business? • Independent Management • Capital/Ownership = Few Individuals • Operations Are Local • Business = Small But Competitors = Large
SBA Definition “…a small business is one that is independently owned and operated and is not dominant in its field of operation.”
Venture Profit Growth Quick Sellout Small/Micro No New Or Innovative Activities Provide Owner Living Objectives
Most CommonHome-Based Businesses Source: Independent Insurance Agents of America
Royalty-Free/CORBIS Contributions OfSmall Business • Encourage Innovation & Flexibility • Close Relationship With Customers/Community • Force Large Firms To Be Competitive • Provide Employees Learning Experience • Develop Risk Takers • New Employment • Greater Employee Job Satisfaction
Royalty-Free/CORBIS Problems ForSmall Business • Recession/Current Economy • Retirement/Transition • Capital/Financing • Unexpected Growth • Succession • Inadequate Financing • Inadequate Management • Government Regulations/Paperwork
Chad Baker/Ryan McVay/Getty Images Challenges ToSmall Business • Exploding Technology • Occupational/Industry Shifts • Reinvention • Reengineered • Downsizing/Rightsizing • Global
Ryan McVay/Getty Images Objectives OfSmall Business Owners • Achieve Independence • Additional Income • Help Families • Products Not Available
Passion Not Money Something You Know Patience Mentor Funding Cash Manager Build Sales Don’t Rush Wary Of Bad Advice/Suppliers Checklist ForAspiring Entrepreneurs
Nick Rowe/Getty Images Business Objectives • Service • Profit • Social • Growth • Mesh Objectives
Desire Independence Strong Sense Of Initiative Personal/Family Motivation Quick/Concrete Results Able To React Quickly Dedicated To Business Enter Business By Chance And/Or Design Characteristics OfSuccessful Owners
Ryan McVay/Getty Images Successful SmallBusiness Management • Adequate Market • Sufficient Capital • Recruit Effectively • Timely Information • Cope With Gov’t Regs. • Expertise • Flexible
Mel Curtis/Getty Images Personal Analysis • Values • Mental Abilities • Attitudes
Royalty-Free/CORBIS Factors Affecting Industry/Business • Economics • Technology • Lifestyle • Political • Demographics
Career Counseling Catering Computer & Office Machine Repair Day Care Education Financial Planning Home Health Marketing Senior Fitness & Recreation Specialized Delivery Ideas For Small Business
Jim Arbogast/Getty Images Small Business Concerns • Poorly Planned Growth • Loss Of Independence • Threat Of Failure • Discontinuance • Types • Formal • Personal/Informal