Entreprene rship

Fostering

!A"A#$"#: A C%!PETE"C& 'A(E) APP*%AC+ 11th Edition

Chapter 6: Fostering Entreprene rship

)on +ellriegel ( san E. 1a35son 1ohn 2. (lo3 m4 1r.

Chapter 6: PowerPoint 6.18 (Adapted from Table 6.1)

Prepared by Argie ' tler Te,as A-! .ni/ersit0

Fostering

6earning #oals
1. E,plain the nat re of entreprene rship and the impa3t the en/ironment has on it 7. )es3ribe the 3ompeten3ies that 3ontrib te to entreprene rs8 s 33ess 9. % tline the planning essentials for potential entreprene rs :. )es3ribe the basi3 essentials of 3orporate entreprene rship
Chapter 6: PowerPoint 6.1

Entreprene rship

Entreprene rship

Entreprene rship: $ts !eaning and (3ope

Common Components of Entreprene rship

Fostering

2hat is Entreprene rship; The 3reation of an inno/ati/e organi<ation for the p rpose of e3onomi3 gain or growth nder 3onditions of ris5 or n3ertaint0
Chapter 6: PowerPoint 6.7

(omething new

(omething better

"ew deli/er0 s0stem or distrib tion 3hannel

Entering an nderser/ed or new mar5et

Entreprene rship

Fostering

+ow )oes the En/ironment Affe3t Entreprene rship;

%pen and free mar5ets )ereg lation Politi3al 3limate E3onomi3 and te3hnologi3al 3onditions ( pport s0stem A/ailabilit0 of 3apital and loans Ta, rates and poli3ies ( pport ser/i3es: ('A4 (')Cs4 /ent re 3apital firms4 3hambers of 3ommer3e4 et3.
Chapter 6: PowerPoint 6.9

Entreprene rship

Fostering

+ow )oes the En/ironment Affe3t Entreprene rship;

' siness in3 bation: a b siness s pport pro3ess that a33elerates the s 33essf l de/elopment of start= p and fledging 3ompanies b0 pro/iding entreprene rs with an arra0 of targeted reso r3es and ser/i3es Common feat res in b siness in3 bators !anagement and te3hni3al g idan3e "etwor5ing *ental spa3e>fle,ible leases (hared b siness ser/i3es and e? ipment Ps03hologi3al and moral s pport Assistan3e in obtaining finan3ing
Chapter 6: PowerPoint 6.:

Fostering

(mall b sinessAone that is independentl0 owned and operated and whi3h is not dominant in its field of operation
('A defines si<e b0 n mber of emplo0ees or dollars of sales4 depending pon ind str0

(mall b siness firm ma0 be entreprene rial4 depending pon its initiati/es
Chapter 6: PowerPoint 6.@

Entreprene rship

Entreprene rship

Fostering

Are Famil0 ' sinesses Entreprene rial Firms;

Famil0 b siness: one owned and managed mostl0 b0 people who are related b0 blood and>or marriage !a0 or ma0 not be entreprene rial 9BC of famil0 b sinesses s r/i/e to the se3ond generation4 17C to the third generation4 and 9C to the fo rth and be0ond
Chapter 6: PowerPoint 6.6

Fostering

(elf management "eed for a3hie/ement )esire for independen3e (elf 3onfiden3e (elf sa3rifi3e

Entreprene rship

Comm ni3ation Planning Teamwor5 (trategi3 and administration a3tion ! lti3 lt ral (pe3iali<ed Enowledge Faries b0 t0pe of b siness la n3hed ( 33essf l entreprene rs

Chapter 6: PowerPoint 6.D (Fig re 6.1)

Entreprene rship

Fostering

$mportan3e of (elf=Confiden3e and %ptimism

I think its important to see this clear path and not be discouraged when people throw stones at it, because they will. You will have to be willing to see the path, believe in it, and have the stamina and persistence to stick with it. You have to stand your ground and have confidence. Denise Divine Founder of Devine Foods
Chapter 6: PowerPoint 6.8

Fostering

Entreprene rship

)eli/ering prod 3ts and ser/i3es that are per3ei/ed as high ? alit0 and that are seen b0 its 3 stomers or 3lients as adding /al e #enerating new 3 stomers or 3lients that e,pand re/en e !aintaining finan3ial 3ontrol of the firm

)e/eloping or impro/ing prod 3ts and ser/i3es on a reg lar basis

Fo3 sing mar5eting e,pendit res and de/eloping 3 stomer= oriented emplo0ees Establishing a strong 3ommitment to ethi3al pra3ti3es

Chapter 6: PowerPoint 6.G

Entreprene rship

Fostering

Planning and Administration Competency !napshot

"o your homework prior to starting the business. #ake sure the market truly needs your service or product. $inally, make sure you can differentiate your service or product from the competition in a way that is beneficial to the customer. !tay focused on your goals, but be fle%ible enough to modify your business plan to match what the market is truly asking for. As evidenced of why this is important &' percent of my firms revenue today is from services we did not offer in my original business plan. )aniel )riesenga Fo nder and CE% )riesenga - Asso3iates

Chapter 6: PowerPoint 6.1B

Entreprene rship

Fostering

Comm ni3ation Competen30

( 33essf l entreprene rs s3ore higher than 87 per3ent of the pop lation on their abilit0 to e,press s pport and en3o ragement ( 33essf l entreprene rs s 33eed b0 helping other peopleAtheir emplo0ees4 partners4 in/estors4 s ppliersAbe3ome s 33essf l themsel/es
Chapter 6: PowerPoint 6.11

Entreprene rship

Planning Essentials for Entreprene rs

(napshot
(!omeone once said If you dont know where youre going, any road will take you there. You need to know e%actly where you want to go, what route youre going to take, when you will arrive and what you are to do upon arrival)no guesswork at all. You need to determine whether there is a demand for your service and, if so, what constitutes your market.* "on "oggett #anagement Counselor Counselors to Americas !mall +usiness

Fostering

' siness Plan

)es3ribes the basi3 idea that is the fo ndation for the start= p and o tlines how that idea 3an be t rned into realit0

Chapter 6: PowerPoint 6.17

Entreprene rship

Fostering

' siness Plan: Essential Components

$. E,e3 ti/e ( mmar0

2hat4 how4 wh04 where4 and when m st be s mmari<ed

$$. ' siness )es3ription Component

The name of the b siness The potential and ni? eness of the new /ent re

Chapter 6: PowerPoint 6.19 (Adapted from Table 6.1)

(3ontin ed)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

$$$. !ar5eting Component

Con/in3e in/estors that sales proHe3tions and 3ompetition 3an be met $dentif0 target mar5et4 mar5et position4 mar5et share4 pri3ing strateg0 E/al ate all 3ompetition and state wh0 and how 0o will be better than 0o r 3ompetitors $dentif0 ad/ertising plans with 3ost estimates
Chapter 6: PowerPoint 6.1: (Adapted from Table 6.1)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

$F. 6o3ation Component

)es3ribe the ad/antages of 0o r lo3ation (<oning4 ta, laws4 wage rates)I list the prod 3tion needs in terms of fa3ilities (plant4 storage4 offi3e spa3e) and e? ipment (ma3hiner04 f rnishings4 s pplies) $ndi3ate pro,imit0 to 0o r s ppliers
Chapter 6: PowerPoint 6.1@ (Adapted from Table 6.1)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

F. !anagement Component
( ppl0 rJs mJs of all 5e0 people in the management of 0o r /ent re )es3ribe the legal str 3t re of 0o r /ent re (sole proprietorship4 partnership4 or 3orporation) #i/e information on how and how m 3h e/er0one is to be 3ompensated
Chapter 6: PowerPoint 6.16 (Adapted from Table 6.1)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

F$. Finan3ial Component

)es3ribe the needed so r3es for 0o r f nds and the ses 0o intend for the mone0 )e/elop an estimated b dget4 3ash flow statement4 and profit and loss statement Create stages of finan3ing for p rposes of allowing e/al ation b0 in/estors at /ario s points
Chapter 6: PowerPoint 6.1D (Adapted from Table 6.1)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

F$$. Potential Criti3al=*is5s Component An0 potentiall0 nfa/orable ind str0=wide trends4 s 3h as pri3e 3 tting b0 3ompetitors )esign or man fa3t ring 3osts in e,3ess of estimates (ales proHe3tions not a3hie/ed Prod 3t de/elopment s3hed le not met Pro/ide some alternati/e 3o rses of a3tion
Chapter 6: PowerPoint 6.18 (Adapted from Table 6.1)

Entreprene rship

Fostering

' siness Plan: Essential Components (3ont8d)

F$$$. !ilestone (3hed le Component

)e/elop a timetable or 3hart to demonstrate when ea3h phase of the /ent re is to be 3ompleted

$K. Appendi, or 'ibliograph0

Chapter 6: PowerPoint 6.1G (Adapted from Table 6.1)

Entreprene rship

+ow to (tart the ' siness

Fostering

' 0 (trateg0

(tart= p strateg0 Fran3hise strateg0

%ther options

Chapter 6: PowerPoint 6.7B

Entreprene rship

Prin3iple of Affordable 6oss

Fostering

The 3ons3io s determination of the amo nt of reso r3es (mone04 time4 and effort) entreprene rs are willing to 3ommit to an idea4 whi3h4 in t rn4 infl en3es the 3hoi3e of strategies and methods needed to generate earl0 re/en es Addresses tension between e,3essi/e anal0sis and ? i35 a3tion
Chapter 6: PowerPoint 6.71

Entreprene rship

Finding F nds

Fostering

Fent re 3apitalist

' siness angel

' siness in3 bators4 go/ernment agen3ies (('A)

Chapter 6: PowerPoint 6.77

Entreprene r4 famil04 friends

Pri/ate se3tor finan3ial instit tions

Entreprene rship

Fa3tors That Fa/or a #lobal (tart= p

Foreign Finan3ing is 'etter Target C stomers *e? ire an $nternational Presen3e

Fostering

+ man *eso r3es Are )ispersed Among Co ntries

#lobal (tart=.p
Foreign Competition 2ill L i35l0 Enter the !ar5et )omesti3 !ar5et is Too (mall to ( pport E,penses

)omesti3 $nertia Co ld $mpede 6ater Efforts to $nternationali<e

Chapter 6: PowerPoint 6.79 (Adapted from Fig re 6.7)

Entreprene rship

Fostering

*e3ommendations to Ens re a ( 33essf l Famil0 ' siness

Clear 1ob E,pli3it +iring Criteria *esponsibilities For Famil0 !embers And A thorit0 *elationships Commitment to *esol/ing Confli3ts L i35l0 Plan for !anagement Transitions .se of % tside Ad/isors>)ire3tors

Chapter 6: PowerPoint 6.7: (Fig re 6.9)

Entreprene rship

Corporate Entreprene rship

Fostering

2hat is Corporate Entreprene rship;

The de/elopment4 promotion4 and implementation of inno/ation initiati/es in established firms for the p rpose of generating growth and4 th s4 profits nder ris50 or n3ertain 3onditions Essential for the s r/i/al of firms

2ho $s a Corporate Entreprene r;

(omeone in an organi<ation who 3hampions t rning new ideas into profitable realities
Chapter 6: PowerPoint 6.7@

Entreprene rship

Fostering

+ow is Corporate Entreprene rship Fostered;

Commitment from senior management
Fle,ible organi<ation design A tonom0 of the /ent re team

Appropriatel0 designed 3ontrol s0stem

$n3enti/es and rewards for ris5 ta5ing

Competent and talented people who e,hibit entreprene rial beha/iors and attit des

Chapter 6: PowerPoint 6.76