2_entrepreneurshipandecommerce_muske_entre

8/6/2019 2_entrepreneurshipandecommerce_muske_entre

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Famil y BusinessesFamil y Businesses

G enerate 62% of nonfarm businessG enerate 62% of nonfarm businessreceiptsreceipts - - $16.8 trillion in 1996$16.8 trillion in 1996 E ven greater impact in midwest economyE ven greater impact in midwest economy

Dominate form in agriculture, retail,Dominate form in agriculture, retail,wholesale, and distribution sectorswholesale, and distribution sectorsE mploy 54.8% of workforceE mploy 54.8% of workforce 69.5 million69.5 millionProvide higher than average householdProvide higher than average householdincome and net worthincome and net worth Only 1% of households are poor vs. 11%Only 1% of households are poor vs. 11%

overalloverall

S ustainable Famil y Business Model


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Available Resourcesand Constraints

PR OC ESS ES

Time of S tabilit y

Interpersonal TransactionsResource Constraints

Times of ChangeInterpersonal Transactions

Resource Transactions

AchievementsObjective S uccessS ubjective S uccess

BUS INESS

Disruptions inFamil y/Business

Transactions

Responses to

Disruptions inFamil y/Business

Transactions S ustainabilit y

Available Resourcesand Constraints

PR OC ESS ES

Time of S tabilit yInterpersonal Transactions

Resource Constraints

Time of ChangeInterpersonal Transactions

Resource Transactions

Achievements

Objective S uccessS ubjectiveS uccess


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More infoMore info

www.hce.osu.edu/fambuswww.hce.osu.edu/fambushttp://www.human.cornell.edu/ne167/http://www.human.cornell.edu/ne167/


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HomeHome--based Business Namesbased Business Names

HewletHewlet- -PackardPackardNikeNikeCokeCokeMrs. Fields CookiesMrs. Fields CookiesMicrosoftMicrosoft

DellDell


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HomeHome--based Business Factsbased Business Facts

NineNine--state study (1988)state study (1988) Typical homeTypical home- -based workerbased worker

44 year old male, married, with children, 14 yrs.44 year old male, married, with children, 14 yrs.education, & a homeownereducation, & a homeownerMean gross business incomeMean gross business income - - $53,164$53,164Mean net business incomeMean net business income - - $15,628$15,628Mean household incomeMean household income - - $42,263$42,263

Had medical insurance from some other sourceHad medical insurance from some other source

As # children increased, number of work hoursAs # children increased, number of work hoursdecreased (1 day per child on average)decreased (1 day per child on average)

Had greater longevity in the communityHad greater longevity in the community

CopreneursCopreneurs


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CopreneursCopreneurs

DefinedDefined Couples in business togetherCouples in business together 31% of family businesses31% of family businesses Have more children, lower educational levels,Have more children, lower educational levels,

rural location, business manager earns less perrural location, business manager earns less per

year, more likely homeyear, more likely home- -based, and have fewerbased, and have feweremployeesemployees

Make significantly less business income andMake significantly less business income andbusiness profits (by factor of 5) & feel businessbusiness profits (by factor of 5) & feel businessis less successfulis less successful

Copreneurs more likely to view business as aCopreneurs more likely to view business as away of life as opposed to a way to earn incomeway of life as opposed to a way to earn income

Copreneurs contCopreneurs cont


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Copreneurs cont.Copreneurs cont.

More likely to intermingle money betweenMore likely to intermingle money betweenbusiness and familybusiness and family More often family toMore often family tobusinessbusiness

Also use more ways of interminglingAlso use more ways of intermingling

Approximately 20% of couples discontinuedApproximately 20% of couples discontinuedthe copreneurial relationship (but stayedthe copreneurial relationship (but stayedtogether as a couple) in a 3together as a couple) in a 3- -year periodyear period

Made less money & saw the business as less successful.Made less money & saw the business as less successful.

Another 20% started a copreneurialAnother 20% started a copreneurialrelationshiprelationship

Made most money of all 3 groups, run by older men withMade most money of all 3 groups, run by older men withmore education, had fewer dependents, and spouse workedmore education, had fewer dependents, and spouse workedfewer hours in business.fewer hours in business.


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ValueValue- - Added Added

OpportunitiesOpportunities


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ValueValue-- Added AddedDefined: Adding consumerDefined: Adding consumer- -desired featuresdesired features

to raw materialsto raw materials

Done by:Done by:1.1. Additional processingAdditional processing2.2. MarketingMarketing - - change from the currentchange from the current

method of distributionmethod of distribution3.3. Use existing resources to produce a new,Use existing resources to produce a new,

more valued product/servicemore valued product/service4.4. Some combinationSome combination


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MarketingMarketingStrategiesStrategies

forforFarmersFarmers

& Ranchers& Ranchers

Reap New ProfitsReap New Profits ::


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FarmersFarmersMarketsMarkets


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People dont come all the way out here to getcheap food. They come because its fun and th

berries are absolutely fresh.

-- Earnie Bohner, Persimmon Hill Berry Farm

Pick Your Own

E F


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EN

TERT

AINM

ENT

F A

RMING

O


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Farm Stands

Community supportedagriculture (CSA)

Cooperatives

Restaurant sales

Mail order/ Internet/Direct marketing

OT

HER

OPTIONS


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RR


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Resources:Resources:USDA Sustainable Agriculture Research andUSDA Sustainable Agriculture Research andE ducation (SAR E )E ducation (SAR E ) www.sare.orgwww.sare.org

Farmers MarketsFarmers Markets - -www.ams.usda.gov/farmersmarketswww.ams.usda.gov/farmersmarkets

Alternative Farming Systems Info CtrAlternative Farming Systems Info Ctrwww.nal.usda.gov/afsicwww.nal.usda.gov/afsic

USDA Farmer Direct MarketingUSDA Farmer Direct Marketing

www.ams.usda.gov/directmarketingwww.ams.usda.gov/directmarketing

North American Direct Marketing Assn.North American Direct Marketing Assn.www.familyfarms.comwww.familyfarms.com


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Minorities and WomenMinorities and Women

G l I f tiG l I f ti


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General InformationGeneral Information

Small business ownership rates for womenSmall business ownership rates for womenand minorities are increasing faster thanand minorities are increasing faster thanfor white malesfor white males Still men start newStill men start newbusinesses at twice the rate of womenbusinesses at twice the rate of women

W

omenW

omen 9.8% own businesses9.8% own businessesTranslates to over 50% of all businessesTranslates to over 50% of all businesses MinoritiesMinorities Ranges from 5% ( B lacks) toRanges from 5% ( B lacks) to

10.4% (Asian)10.4% (Asian)Firm receipts average about 2/3 of all bus.Firm receipts average about 2/3 of all bus.

Proprietor income averages about 50% of Proprietor income averages about 50% of all other businessesall other businessesFirms employee fewer peopleFirms employee fewer people

S i l IS i l I


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S pecial IssuesS pecial Issues

Access to capitalAccess to capitalAcceptance by business communityAcceptance by business communityAcceptance by family and friendsAcceptance by family and friendsNetworks are smaller and moreNetworks are smaller and morefamilyfamily- -focusedfocusedMost often in retail or serviceMost often in retail or serviceindustriesindustries Industries with highest failure rates andIndustries with highest failure rates and

lowest profitslowest profits


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Barriers toBarriers to

EntrepreneurshipEntrepreneurship

A lack of: A lack of:


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1.1. Steady stream of wantSteady stream of want- -aa--bes bes 2.2. Can Can--do attitude held by thedo attitude held by theentrepreneur and the communityentrepreneur and the community3.3. Coordinated, accessible, longCoordinated, accessible, long- -termterm

support networksupport network4.4. Coaches and mentorsCoaches and mentors5.5. CapitalCapital6.6. Available human capitalAvailable human capital7.7. MultiMulti--faceted healthy communityfaceted healthy community8.8. Supportive regulatory environmentSupportive regulatory environment


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The man who makes noThe man who makes nomistakes does not usuallymistakes does not usuallymake anything. " make anything. "

E dward John Phelps, American lawyer and diplomat (1822E dward John Phelps, American lawyer and diplomat (1822- -1900)1900)

" Nothing great was ever" Nothing great was everachieved withoutachieved withoutenthusiasm. "enthusiasm. " Ralph W aldo E mersonRalph W aldo E merson


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HighlightsHighlights

HighlightsHighlights


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HighlightsHighlightsE ntrepreneurship is an everE ntrepreneurship is an ever- -continuing,continuing,growing trendgrowing trendE ntrepreneurs contribute to theirE ntrepreneurs contribute to theirhousehold and to their communityhousehold and to their communityE ntrepreneurship is a learned talentE ntrepreneurship is a learned talentE ntrepreneurs form our economic baseE ntrepreneurs form our economic baseE ntrepreneurship allows people to remainE ntrepreneurship allows people to remain

in a communityin a communityCommunities can encourageCommunities can encourageentrepreneurshipentrepreneurship


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E ntrepreneurs:E ntrepreneurs:-- See opportunitySee opportunity-- Are innovative in developing thatAre innovative in developing that

opportunity through creativityopportunity through creativityand resource gatheringand resource gathering

-- Seek gain while accepting riskSeek gain while accepting risk

andand uncertaintyuncertainty

One Last MythOne Last Myth


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yyThe key to success is a great ideaThe key to success is a great idea

Good ideaGood idea

Great planGreat planPassion!Passion!

The keys are:


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How Extension can help ?How Extension can help ?

1. Awareness of owners prioritiesf h b


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OneOne--onon--oneoneMentoringMentoring

AdvocatingAdvocatingPartneringPartneringCommunity supportCommunity support

Awareness of other programsAwareness of other programs

E ducationE ducation

2. Comfort with subject matter

ResourcesResources


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ResourcesResourcesSouthern Rural Development CenterSouthern Rural Development Center

http://srdc.msstate.edu/http://srdc.msstate.edu/

K ansas City Federal Reserve B ankK ansas City Federal Reserve B ank Center for the Study of Rural AmericaCenter for the Study of Rural America

http://www.kc.frb.org/RuralCenter/RuralMain.htmhttp://www.kc.frb.org/RuralCenter/RuralMain.htm

Rural Policy Research Institute (RUPRI)Rural Policy Research Institute (RUPRI)http://www.rupri.org/http://www.rupri.org/

Resources contResources cont


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Resources cont.Resources cont.

AdultAdult Cashing In On B usiness OpportunitiesCashing In On B usiness Opportunities NeXt Level/Fasttrac/other commercialNeXt Level/Fasttrac/other commercialOSUOSU

Putting It All TogetherPutting It All TogetherFood B ased B usiness: The Owners G uideFood B ased B usiness: The Owners G uideAn E xploration of E ntrepreneurshipAn E xploration of E ntrepreneurshipV isual MerchandisingV isual Merchandising

E ducational programE ducational program Demonstration programDemonstration program

Mapping Your Marketing FutureMapping Your Marketing Future Magazines, i.e. E ntrepreneurMagazines, i.e. E ntrepreneur



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YouthYouthMiniMini--SocietySociety B e the E : E ntrepreneurshipB e the E : E ntrepreneurship (4(4--H CCS)H CCS) http://youngbiz.com/http://youngbiz.com/ http://www.celcee.edu/http://www.celcee.edu/ -- clearinghouseclearinghouse

G eneralG eneral http://www.entrehttp://www.entre- -ed.org/index.htmed.org/index.htm


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EntrepreneurshipEntrepreneurship

G lenn MuskeG lenn Muske

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