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ENTREPRENEUDRBS IP

SH 23&0
SMALL BUSINESS
OPERATION

Lecture 1
ENTREPRENEURSHIP IN THE
NEW MILLENNIUM

PREPARED BY:
MS.KOMLAVATHI
SCHOOL OF BUSINESS
Entrepreneurship & Small Business Operation
LECTURE 1:ENTREPRENEURSHIP IN THE NEW MILLENNIUM

IN THE SPORTLIGHT: DELL COMPUTER CORPORATION

Born on February 23, 1965, in Houston, Texas, Michael


Dell showed an early interest in technology and
gadgets.
At the age of 15, he purchased an early Apple
computer in order to take it apart to see how it
worked.
In college, he started building computers and selling
them directly to people, focusing on strong customer
support and cheaper prices.
Dell Computer was the world's largest PC maker.

http://www.biography.com/people/michael-dell-9542199#synopsis

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TOPIC OUTLINES
1.0 Entrepreneurship In The New Millennium
1.1 Entrepreneurial Opportunities
1.2 The Rewards and Drawbacks of Entrepreneurship
1.3 Who are the Entrepreneurs?
1.4 The Changing Context of Small Business
1.5 The Winning Hand of Entrepreneurs
1.6 Getting Started in Entrepreneurship

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CHAPTER AIMS
After studying this chapter, you should be able to:
Discuss the availability of entrepreneurial opportunities and give example
of successful businesses started by entrepreneurs.
Identify three rewards and three drawbacks of entrepreneurial careers.
Describe the types of entrepreneurs, entrepreneurial management styles
and entrepreneurial venture.
Explain the aspects of the changing context of small business.
Identify three tools that provide a potential competitive edge for small
entrepreneurial firms.

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1.0 Entrepreneurship In The New Millennium

Entrepreneurs are;
Decision makers, help shape the free-enterprise economic system of the
new millennium
Energizers who take risks and spark economic growth.
A person who starts and/or operates a business

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1.1 Entrepreneurial Opportunities

The successful entrepreneurial ventures:


ViaSat Inc. (Carlsbad, California)
Mark Dankberg, Steven Hart and Mark Miller found their own business.
Developed backpack size communicator called Manpack.
Became successful and included on the Forbes list of the nations 200 best
small companies.
This firm focusing on business opportunities in developing countries such as
India and China.
ViaSat provides an example of entrepreneurial success based on
technological expertise.
The three engineers took the step together, sharing the risk and the
potential rewards.

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1.1 Entrepreneurial Opportunities

C&B Industrial Safety, Inc. (Sunrise, Florida)

Carla Connor of Sunrise, Florida started her business after losing a sales
job.
Using her home as base, Connor started C&B Industrial Safety, Inc. to sell
industrial safety equipment.
C&B Industrial Safety, Inc succeeded with four employees and more than $1
mil sales revenue.

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1.2 The Rewards and Drawbacks of Entrepreneurship

Rewards

Individuals pulled toward entrepreneurship by a number of powerful


incentives .
The rewards may be grouped for the sake of simplicity into three basic
categories.
Rewards of Entrepreneurship

Profit Independence Satisfying Way


Freedom from Freedom from of Life
the limits of supervision and Freedom from
standardized pay rules of routine, boring,
for standardized bureaucratic and
work organizations unchallenging jobs

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1.2 The Rewards and Drawbacks of Entrepreneurship

Drawbacks of Entrepreneurship

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1.3 Who are the Entrepreneurs?

Characteristics of Entrepreneurs

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1.3 Who are the Entrepreneurs?

Women as Entrepreneurs

More Women Entrepreneurs


The number of women-owned firms grew nearly twice as fast as that
of all firms from 1997.
Females owned 30% of all businesses as of 2006.
Women are moving into nontraditional industries.
Problems Facing Female Entrepreneurs
Newness of entrepreneurial role
Lack of access to credit
Lack of networking
connections
Discrimination

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1.3 Who are the Entrepreneurs?

The Types Entrepreneurs

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1.3 Who are the Entrepreneurs?

Artisan Entrepreneurs

Artisan Entrepreneur
A person with primarily technical skills and little business knowledge
who starts a business.
Characteristics:
Technical training
Paternalistic approach
Reluctance to delegate
Few sources of capital
Narrow view of strategy
Personal sales effort
Short planning horizon

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1.3 Who are the Entrepreneurs?

Opportunistic Entrepreneurs

Opportunistic Entrepreneur
A person with both sophisticated managerial skills and technical
knowledge who starts a business.
Characteristics:
Broad-based education
Scientific approach to problems
Willing to delegate
Broad view of strategy
Diversified marketing approach
Longer planning horizon
Sophisticated accounting
and financial control

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1.3 Who are the Entrepreneurs?

Entrepreneurial Teams

Two or more people come together to function in the capacity of


entrepreneurs.
Reasons:
Secure a broader range of managerial talents
The need for diversified experience particularly important in new
high-technology businesses.

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1.3 Who are the Entrepreneurs?

Entrepreneurial Ventures

Limited returns
Limited potential
Marginal firms
Substantial returns to its
owner

Attractive small companies

Has great prospects for


growth.
Examples:
Apple Computer
High-potential ventures Nike 1-9
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1.4 The Changing Context of Small Business

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1.5 The Winning Hand of Entrepreneurs

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1.6 Getting Started in Entrepreneurship


Routes to Entrepreneurship

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1.6 Getting Started in Entrepreneurship


Age and Entrepreneurial Opportunity

Early Career Concerns Late Career Concerns


1. Getting an education 1. Fulfilling family
responsibilities
2. Gaining work experience
2. Attaining seniority
3. Acquiring financial in employment
resources
3. Earning investment in
a retirement program

20 25 35 45+
Age
Generation Y Generation X Baby Boomers

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1.6 Getting Started in Entrepreneurship


Refugees As Entrepreneurs

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ACTIVITY
1. People who own, operate, and take risk of a business venture
1. A.Aptitude
2. B.Employee
3. C.Entrepreneurs
4. D.Entrepreneurship
2. Which one is NOT a disadvantage of Entrepreneurship?
1. A.Risky
2. B.Uncertain Income
3. C.You are the boss
4. D.Work long hours
3. Which one is NOT an advantage of Entrepreneurship?
1. A.Can choose a business of interest
2. B.You can be creative
3. C.Make a lot of money
4. D.You will make decisions alone

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KEY TERMS
Entrepreneur Entrepreneurial team
Lifestyle business Marginal firm
Need for achievement Attractive small firm
Internal locus of control High potential venture
External locus of control Refugee
Founder Foreign refugee
General manager Corporate refugee
Franchisee
Artisan entrepreneur
Opportunistic entrepreneur

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List of references

Petty, W.J.; Palich, L.E.; Hoy, F. & Longenecker, J.G. ( 2012) Managing
Small Business: An Entrepreneurial Emphasis, International Edition. (16th
ed.) Cengage Learning.

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