Strayer University IT/Entrepreneurs (SUITE) Club

Sept 11th 2010 Seminar

Prof. Mort Anvari

Strayer University IT/Entrepreneurs (SUITE) Club

Sept 11th 2010 Seminar

Prof. Mort Anvari

Mort Anvari 2

The World of the Entrepreneur

Every year in the U.S., entrepreneurs launch 850,000 new businesses.

Entrepreneurial spirit - the most significant economic development in recent history.

GEM study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business.

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Mort Anvari

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The World of the Entrepreneur

GEM study Globally 9.4 percent of adults are

actively engaged in trying to start a business.

Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however).

Nearly one-third of global entrepreneurs are between the ages of 25 and 44.

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What Is an Entrepreneur?

One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

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Characteristics of Entrepreneurs

Desire for responsibility Preference for moderate risk –

risk eliminators Confidence in their ability to

succeed Desire for immediate feedback High level of energy Future orientation – serial

entrepreneurs Skilled at organizing Value achievement over money

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Entrepreneurship

One characteristic of entrepreneurs stands out:

Diversity! Anyone – regardless of age, race,

gender, color, national origin, or any other characteristic – can become an entrepreneur (although not everyone should).

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Benefits of Entrepreneurship

The opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be

recognized for your efforts Do what you enjoy and to have

fun at it

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Drawbacks of Entrepreneurship

Uncertainty of income Risk of losing your entire

investment Long hours and hard work

Small Business Owners' Work WeekNumber of Hours Worked per Week

Less than 30 hours11%

30 to 40 hours24%

41 to 50 hours28%

51 to 60 hours20%

More than 60 hours17%

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Drawbacks of Entrepreneurship

Uncertainty of income Risk of losing your entire

investment Long hours and hard work Lower quality of life until the business

gets established

Entrepreneurs' Age at Business Formation

18 - 2412.0%

25 - 3432.3%

35 - 4430.6%

45 - 5417.4%

55 - 646.7%

Over 651.0%

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Drawbacks of Entrepreneurship

Uncertainty of income Risk of losing your entire

investment Long hours and hard work Lower quality of life until the

business gets established High levels of stress Complete responsibility Discouragement

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Feeding the Entrepreneurial Fire

Entrepreneurs as heroes Entrepreneurial education Demographic and

economic factors Shift to a service economy Technological

advancements Independent lifestyle E-commerce and the World

Wide Web

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$117.7

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Feeding the Entrepreneurial Fire

Entrepreneurs as heroes Entrepreneurial education Demographic and economic

factors Shift to a service economy Technological

advancements Independent lifestyles E-commerce and the World

Wide Web International opportunities

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The Cultural Diversity of Entrepreneurship

Young entrepreneurs Women entrepreneurs

Why Women Start Businesses

Gain control over my schedule

46%

Saw a market opportunity and

decided to pursue it

24%

Frustrated with "glass ceiling" at

big companies23%

Other reasons7%

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The Cultural Diversity of Entrepreneurship

Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs

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The Cultural Diversity of Entrepreneurship

Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts

Small Business by Industry

Service39.2%

Retail20.5%

Construction11.8%

Wholesale7.4%

Manufacturing5.8%

Finance8.0%

Other7.3%

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Small Businesses... Make up 99.7 percent of all

businesses in the U.S. Employ 51 percent of the

nation’s private sector workforce.

Create more jobs than big businesses.

Are leaders in offering training and advancement opportunities to workers.

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Produce 51 percent of the nation’s private GDP.

Account for 47 percent of business sales.

Create 13X more innovations per employee than large companies. Zipper, FM radio, laser, air

conditioning, escalator, light bulb, personal computer, automatic transmission, and many more!

Small Businesses...

100%

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# of Years in Business

Small Business Survival Rate

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Ten Deadly Mistakes of Entrepreneurship

1. Management mistakes2. Lack of experience3. Poor financial control4. Weak marketing efforts5. Failure to develop a strategic

plan

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Ten Deadly Mistakes of Entrepreneurship

6. Uncontrolled growth7. Poor location8. Improper inventory control9. Incorrect pricing10. Inability to make the

“entrepreneurial transition”

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Putting Failure into Perspective

Entrepreneurs are not paralyzed by the prospect of failure.

Failure – a natural part of the creative process.

Successful entrepreneurs learn to fail intelligently.

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Avoiding the Pitfalls of Small Business Failure

Know your business in depth

Develop a solid business plan

Manage financial resources

Understand financial statements

Learn to manage people effectively

Keep in tune with yourself