INTRO TO BUSINESSCHAPTER 6

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

6-1 Becoming an Entrepreneur6-2 Small Business Basics6-3 Starting a Small Business

6-1 Becoming an Entrepreneur Entrepreneur –

Entrepreneurship –

6-1 Becoming an Entrepreneur Characteristics of Entrepreneurs

Come from all _____ and _____ categories Varied levels of __________ Must have an understanding of business

__________ Many entrepreneurs ask for ______ in

starting a business See figure 6-1 (pg 128) for personality

characteristics of successful entrepreneurs

6-1 Becoming an Entrepreneur Entrepreneurship and the

Economy ________ Americans age 18-64 is

involved in some type of entrepreneurship activity

Over _____ of new jobs were created by businesses with fewer than 500 employees

Business with a single owner account for more than __________in sales annually

Small businesses are responsible for more than ______ of the U.S. GDP

6-1 Becoming an Entrepreneur Financing a Small Business

Most of the money needed to start a new business comes from the ___________ or his or her ______ and __________

Venture Capital –

Loans from _______ and credit given by _______ are other sources of financing

6-1 Becoming an Entrepreneur Business opportunities

Innovation –

Improvement –

Business risks

6-2 Small Business Basics

Small Business –

________ of all U.S. businesses are small businesses

A Typical Small Business: Is managed by the _______ Serves a _____________ Operates is one or very few _________ Is _____ _________ in its field

6-2 Small Business Basics

Small Business Advantages

Can _________ in areas big businesses can’t/won’t

Serve fewer _________ and have more contact with them than big businesses

More likely to be located close to their customers

Can provide more individual __________ Can get more immediate _________ from

customers regarding their wants and needs

6-2 Small Business Basics

Common Small Business Problems

Small businesses have a high failure rate.

6-2 Small Business Basics

Small Business Assistance University and college professors Chamber of Commerce Small Business Administration (SBA)

–

Service Corps of Retired Executives (SCORE)

6-3 Starting a Small Business Start with an _______

Hobbies, interests, business experiences Find the right ______ to open the

business Assemble a ______

Employees, service providers (accountant, lawyer, etc.)

Prepare and _________ Develop a _________ _____

6-3 Starting a Small Business Business Plan –

Description of the business (products and services, location, goals)

Ownership structure Customer analysis (sales forecast) Operations plan Marketing plan Financial plan (budget, sources of financing,

start-up costs, projected financial statements)

6-3 Starting a Small Business Most popular use of a business plan is to

_______ __________ __________________– the amount of money needed

to open the business (inventory, supplies, licenses)

__________________– the money needed to pay for the current operating activities of the business; less than one year

__________________– the money needed for the main resources of the business that will last for many years (land, buildings, equipment)

Sources of financing include a combination of owner-supplied funds and borrowed funds