The Role of Entrepreneurs in a Competitive Economy

1. Team Presentation The Role of Entrepreneurs in a Competitive Economy Hye Ran KIM Kun Tack PARK Sang Woo YU Jeong Hyun LEE Eunah JANG 2007270060 2007270080 2007270242 2007270246 2007730032

2. Agenda What is an Entrepreneur? Characteristics of Entrepreneurs The Environment for Entrepreneurs

3. What is an Entrepreneur? What is an Entrepreneur? Person who : seeks a Profitable Opportunity and takes the Necessary Risks to set up and operate a business.

4. What is an Entrepreneur? What are these meaning and difference? Willing of expansion and growth same drive, creative energy, and desire to succeed. Overriding responsibility is to use resources-employees, money, equipment, facilities. employee who direct the efforts of others to achieve an organization’s goals.

5. Categories of Entrepreneur Classic Entrepreneurs Serial Entrepreneurs Social Entrepreneurs

6. Categories of Entrepreneur Classic Entrepreneurs Person who : Identifies a Business Opportunity and Allocates available resources to tap that market. Serial Entrepreneurs Social Entrepreneurs

7. Categories of Entrepreneur Classic Entrepreneurs Serial Entrepreneurs Person who: Starts one business, runs it, and then starts and runs additional business in succession. Social Entrepreneurs

8. Categories of Entrepreneur Person who: Recognizes Societal Problems and uses business principles to develop Innovative Solutions. Classic Entrepreneurs Serial Entrepreneurs Social Entrepreneurs

9. Why People Become Entrepreneurs Desire

10. The Environment for Entrepreneurs Factors Supporting and Expanding Opportunities for Entrepreneurs Globalization Education Expanded Opportunities for Entrepreneurs Demographic & Economic Trend Information Technology

11. Factors Supporting and Expanding Opportunities for Entrepreneur Globalization International sales International talent

12. Factors Supporting and Expanding Opportunities for Entrepreneur Education Providing Entrepreneurship curricula Offering opportunities to intern Teaching entrepreneurship to young people

13. Factors Supporting and Expanding Opportunities for Entrepreneur Information Technology Work quickly & efficiently Provide immediate & attentive customer service Increase sales Project professional images

14. Factors Supporting and Expanding Opportunities for Entrepreneur Demographic & Economic Trend Aging of population Growth of ethnic group Predominance of two-income families

15. Characteristics of Entrepreneurs High Energy Level Vision Need to Achieve Tolerance for Failure and Ambiguity with Creativity Internal Locus of Control Self-Confidence And Optimism

16. Characteristics of Entrepreneurs

17. Characteristics of Entrepreneurs Vision want to provide Personal Computer to public in 70s

18. Characteristics of Entrepreneurs

19. Characteristics of Entrepreneurs Failure and Ambiguity Steve jobs leaves Apple, because of power struggle NeXT, which founded by Steve Jobs Fail in PC business

20. Characteristics of Entrepreneurs Steve Jobs get a chance to be C.E.O of Apple again.

21. Characteristics of Entrepreneurs

22. Characteristics of Entrepreneurs You have to trust in something ; your gut, destiny, life, karma, whatever Stay Hungry. Stay Foolish.

23. Starting a New Venture Starting a New venture 1.Selecting a business Idea 2.Creating a Business Plan 3.Finding Financing

24. Starting a New Venture 1.Selecting a business Idea. • Something you love to do • Something you can satisfy a need in marketplace.

25. Starting a New Venture 1.Selecting a business Idea. • Something you love to do passion

26. Starting a New Venture 1.Selecting a business Idea. • Something you can satisfy a need in marketplace. Survive

27. Starting a New Venture 1.Selecting a business Idea. • Development of new product or service. • Buying an Existing Business. • Buying a Franchise.

28. Starting a New Venture 1.Selecting a business Idea. Development of new product or survive. High risk, High return.

29. Starting a New Venture 1.Selecting a business Idea. • Buying an Existing Business. Healthy business? Struggling business?

30. Starting a New Venture 1.Selecting a business Idea. • Buying a Franchise Many convenience. Poison apple?

31. Starting a New Venture 2.Creating a Business plan • Not necessary. • But advisable. Flexibility ≠Unplanned

32. Starting a New Venture 3.Finding Financing Funding Used by Entrepreneurs for Start-ups Self-financing(82%) Loans from family, friend, or business associates(22%) Bank loans(18%) Lines of credit (18%) Venture capital (8%) SBA or other government funds(4%)

33. Starting a New Venture 3.Finding Financing 1. Dept Financing Big Difference?? 2. Equity Financing

34. Starting a New Venture 3.Finding Financing 1. Dept Financing Big Difference?? The Investors have ownership or not 2. Equity Financing

35. Starting a New Venture 3.Finding Financing 1. Dept Financing • Loan from family, friend, or business associates • Bank loans • Lines of credit • -> a business can borrow • when business needed within approved limit

36. Starting a New Venture 3.Finding Financing 1. Dept Financing • Loan from family, friend, or business associates • Bank loans • Lines of credit • -> a business can borrow • when business needed within approved limit Repayment Risk

37. Starting a New Venture 3.Finding Financing 2. Equity Financing Ideas skills money Partner

38. Starting a New Venture 3.Finding Financing 2. Equity Financing • Venture Capitalists 2. Angel Investment

39. Starting a New Venture 3.Finding Financing 2. Equity Financing Invest in? Early stage, high potential, growth company Typically in high Technology industries • Venture Capitalists

40. Starting a New Venture 3.Finding Financing 2. Equity Financing • In Exchange for taking Risk?? • High rates of return • 2. Extremely rare qualities like: • innovative technology • potential for rapid growth • a well-developed business model • impressive management team • Venture Capitalists

41. Starting a New Venture 3.Finding Financing 2. Equity Financing • Terms • How much the company is worth • How much stock the investors will retain • Control of the company’s board • Payment of dividends • Prohibition from shopping for further investment • Venture Capitalists

42. Starting a New Venture 3.Finding Financing 2. Equity Financing • Venture Capitalists 2. Angel Investment

43. Starting a New Venture 3.Finding Financing 2. Equity Financing • “ Angel “ • Successful Entrepreneurs • They want to help aspiring business owners • Because: they are in the familiar difficulties of launching their businesses 2. Angel Investment

44. Starting a New Venture 3.Finding Financing 3. Government Support for New Ventures

45. Starting a New Venture 3.Finding Financing 3. Government Support for New Ventures • Ways to Support New Ventures. • SBA, Agencies, business incubators: • Offer information, resources, access to financing • 2) Enterprise Zone • 3) Government Legislation

46. Starting a New Venture 3.Intrapreneurship

47. Starting a New Venture 3.Intrapreneurship • What? • Encourage Intrapreneurship • in Established companies • Why? • To promote innovation within their organizational structure • Why Innovation? • To maintain their competitive advantages