edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Chapter 1 Entrepreneurship in the New Millennium Small Business Statistics Approx. 25 million S.B.s in the U.S. Represent 99%(+) of all employers Provide 67% of workers w/first job Approx. 75% of new jobs 46% of all sales in the U.S. Represent 96% of all exporters of goods Provide55% of innovations Small Business
No official certification process. SBA uses Standard Industrial Classification (SIC) codes in determining size standards. However, it is usually a firm with fewer than 500 employees. 1-11 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Criteria for Defining Smallness in Business Number of employees Value of assets Volume of deposits Insurance in force Sales volume Entrepreneur Traditional: a person who starts and/or operates a business
Broader Definition: includes owner- managers; second generation family owners; and those who buy out existing firms 1-4 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Entrepreneurial Incentives Rewards of Entrepreneurship Profit Freedom from the limits of standardized pay for standardized work Independence Freedom from supervision and rules of bureaucratic organizations Satisfying Way of Life Freedom from routine, boring, and unchallenging jobs 1-5 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Drawbacks of Entrepreneurship Hard Work Long Hours Stress Risk 1-6 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Entrepreneurial Characteristics 1. Need for achievement 2. Risk tolerance 3. Self-confidence 4. Enthusiasm 1-7 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Three Types of Entrepreneurs 1. Founders 2. General Managers 3. Franchisees 1-8 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Characteristics of Artisan and Opportunistic Entrepreneurs Opportunistic Entrepreneur 1. Broad education 2. Rational approach 3. Willing to delegate 4. Broad view of strategy 5. Diversified marketing approach 6. Longer planning horizon 7. Sophisticated accounting and financial control Artisan Entrepreneur 1. Technical training 2. Paternalistic approach 3. Reluctance to delegate 4. Narrow view of strategy 5. Personal sales effort 6. Short planning horizon 7. Simple record keeping 1-16 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Entrepreneurial Refugees Foreign refugee Corporate refugee Parental refugee Feminist refugee Housewife refugee Society refugee Educational refugee 1-15 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Age Concerns in Starting a Business
Late Career Concerns 1. Fulfilling family responsibility 2. Attaining seniority in employment 3. Earning investment in a retirement program
Age 20 30 40 50 Early Career Concerns 1. Getting an education 2. Gaining work experience 3. Acquiring financial resources 1-10 Small Business Management, 11th edition Longenecker, Moore, and Petty 2000 South-Western College Publishing
Three Challenges to Small Businesses 1. Growth of superstores 2. Expansion of information technology and the Internet 3. Emergence of a global economy