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Entrepreneurial Insights: Opportunities and Challenges

Explore the world of entrepreneurship, from the distinctive traits of successful entrepreneurs to the risks and rewards of starting a business. Discover the keys to small business success, from funding options to economic impacts. Dive into the dynamic landscape of launching new ventures, learning from both failures and triumphs. Whether you're considering buying a franchise or building a business from scratch, this comprehensive guide offers valuable tools and resources for aspiring entrepreneurs.

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Entrepreneurial Insights: Opportunities and Challenges

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  1. Chapter 7: SMALL BUSINESS AND ENTREPRENEURSHIP Economic Rocket Fuel

  2. LAUNCHING NEW VENTURES: WHAT’S IN IT FOR ME? • Greater Financial Success • Independence • Flexibility • Challenge • Survival On any given day in the United States, more people are trying to start a new business than are getting married or having children.

  3. THE ENTREPRENEUR: A DISTINCTIVE PROFILE Self-Reliance Vision Entrepreneurs – People who risk their time, money, and other resources to start and manage a business. Confidence Energy Tolerance of Failure Tolerance of Uncertainty

  4. OPPORTUNITIES AND THREATS FOR SMALL BUSINESS: A TWO-SIDED COIN • Threats: • Higher Risk of Failure • Lack of Knowledge and Experience • Too Little Money • Bigger Regulatory Burden • Higher Health Insurance Costs • Opportunities: • Market Niches • Personal Customer Service • Lower Overhead Cost • Technology

  5. SMALL BUSINESS FAILURE

  6. DOT-COM DEBACLES Webvan: the value of this early online grocer peaked at $1.2 billion, but Webvan left 2,000 people out of work when it closed its doors in the middle of 2001. Arrangeonline.com, Funeral.com, Heavenly-Door.com and Plan4ever.com marketed funeral arrangements and related services Pets.com: Shutting down only nine months after its $82.5 million IPO, Pets.com hawked pet care products from doggie treats to kitty litter, but lacked a workable plan for high shipping costs. Petstore.com offered a fish delivery service. They were bought out by Pets.com for $13 million in stock

  7. LAUNCH OPTIONS • Starting from scratch • Buying an established business • Buying a franchise

  8. BUYING AN ESTABLISHED BUSINESS

  9. STARTING A BUSINESS FROM SCRATCH

  10. BUYING A FRANCHISE

  11. ENTERING INTO A FRANCHISE AGREEMENT • Know all the facts before signing the dotted line: • Terms and Conditions • Fees and Other Payments • Training and Support • Specific Operational Requirements • Conflict Resolution • Assigned Territory • Franchisors must provide a Franchise Disclosure Document (FDD) • The Federal Trace Commission (FTC) require: • The FDD must be written in plain English • The franchisor must be given 14 days to review the FDD • The Franchisee should have a lawyer review the document

  12. TOOLS FOR BUSINESS SUCCESS • Small Business Administration • Gain Experience • Learn from Others • Educate Yourself • Write a Business Plan

  13. The Business Plan • Executive Summary • Description of Business • Competitive and Industry Research • Marketing Strategies • Operating Procedures • Personnel • Financial Projections

  14. FINDING THE MONEY: FUNDING OPTIONS • Personal Resources • Loans • Angel Investors • Venture Capital

  15. SMALL BUSINESS AND THE ECONOMY: AN OUTSIZED IMPACT • Creating New Jobs • Fueling Innovation • Vitalizing Inner Cities

  16. ECONOMIC IMPACT • Just 9.8% of the world’s entrepreneurs expect to create almost 75% of the jobs generated by new business ventures in the next five years. • 1 out of 10 adults worldwide start businesses every year • Three key factors drive entrepreneurship globally: • Per Capita Income • Opportunity Cost • Cultural/Political Environment

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