1 / 12

CHAPTER 3 Entrepreneurship, New Ventures, and Business Ownership

CHAPTER 3 Entrepreneurship, New Ventures, and Business Ownership. L E A R N I N G O B J E C T I V E S. Explain entrepreneurship and describe some key characteristics of entrepreneurial personalities. How to start a business Forms of business : Sole proprietorship Partnership

manny
Download Presentation

CHAPTER 3 Entrepreneurship, New Ventures, and Business Ownership

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 3 Entrepreneurship, New Ventures, and Business Ownership

  2. L E A R N I N G O B J E C T I V E S • Explain entrepreneurship and describe some key characteristics of entrepreneurial personalities. • How to start a business • Forms of business : • Sole proprietorship • Partnership • Corporation 3. Evaluate the advantages and disadvantages of different kinds of ownership. 4. Discuss the reasons for success or failure in a business/activity.

  3. Entrepreneurship • Entrepreneurship • The process of seeking business opportunities under conditions of risk. • Entrepreneur • One who accepts the risks and opportunities of creating, operating, and growing a new business. • Successful Entrepreneurs: • Are resourceful and open-minded • Are concerned about good customer relations • Desire to be their own boss • Can deal with uncertainty and risk

  4. Types of Business Ownership Job creation • Small Business A business that is independent and that has relatively little influence in its market. • Importance of Small Business for the Economy. Innovation Contributions to big business

  5. Starting a Business 1. Buying an Existing Business • Less risk? 2. Franchising • Advantages for franchisee • Proven business opportunity • Access to management expertise • Disadvantages for franchisee • Start-up costs • Ongoing payments • Management rules and restrictions

  6. Starting a Business 2. Starting from Scratch • Preparing a Business Plan • Setting goals and objectives • Sales forecasting • Financial planning • Disadvantage: Risk of business failure • Advantage: Avoids problems of existing business. • Questions to Be Answered: • Who and where are my customers? How much will they pay for my product? How much/many products can I expect to sell? Who are my competitors? Why will customers buy my product rather than the competitors? Who is going to manage my business?

  7. Financing the Small Business • Personal resources • Loans from family and friends • Bank loans • Malaysian Industrial Development Finance Berhad (MIDF)

  8. Trends in e-commerce

  9. Advantages: Freedom Simple to form Low start-up costs Tax benefits Disadvantages: Unlimited liability: Owner is responsible for all debts Limited resources Limited fundraising capability Lack of continuity Forms of Business Ownership Sole Proprietorships Sole proprietorship: Owned by one person.

  10. Advantages: More talent and money. More fundraising capability. Relatively easy to form. Limited liability for limited partners. Tax benefits. Disadvantages: Unlimited liability for general partner(s). Disagreements among partners. Lack of continuity. Forms of Business Ownership Partnerships Partnership: owned by more than 1 person. General partnership- all will participate in the day to day operations. Limited partnership- not all will participate in the day to day operations.

  11. Advantages: Limited liability: owners’ financial responsibility is limited to their investment Continuity Stronger fundraising capability Disadvantages: Can be taken over against the will of its management Double taxation of profits. Complicated and expensive to form. Forms of Business Ownership Corporations • Corporation : business that is legally considered an entity separate from its owners and is liable for its own debts; owners’ liability extends to the limits of their investments.

  12. Question • Stockholders, Shareholder, Stakeholders. What are the differences? • State which form of business ownership the following company falls into: • Yuko Enterprise • OMG Sdn Bhd • Abric Bhd

More Related