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Chapter5.pptxStudent Version
Entrepreneurship’s Role in Society
Creation of new jobs
Source of innovation
Support larger businesses
Engage in exporting
The Role of Small Businesses in the Economy
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–2
2
Strategy for Entrepreneurial Organizations
Emphasizing distinctive competencies
Gaining first mover advantage
Choosing an industry in which to compete
Basic Strategic Challenges
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–3
3
Strategically Utilizing Distinctive Competencies
Identifying new markets
Taking first-mover advantage
Identifying niches in current markets
Seeking Competitive Advantage
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–4
4
Writing a Business Plan
Business goals and objectives
Business strategies
Implementation plans
Components of a Business Plan
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–5
5
Starting a New Business
Lower risk, proven ability
Established networks
Existing problems
Buying an Existing Business
No prior problems
Freedom to choose
Higher risk and uncertainty
Starting from Scratch
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–6
6
Identifying a Business Opportunity
Where are they located?
At what price will they buy my product?
How will my product differ from those of my competitors?
Questions to Ask
Who are my customers?
In what quantities will they buy?
Who are my competitors?
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–7
7
Getting into the Game
Venture Capital Companies
Small-Business Investment Companies
SBA Financial Programs
Sources of New Business Financing
Personal Resources
Strategic Alliances
Lenders
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–8
8
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Seeking New Business Advice
Advisory Boards
Management Consultants
Small Business Administration
Networking with Others
Sources of Management Advice
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–9
9
22
Sources of Help for Entrepreneurs
Boards of directors
Management consultants
SBA
Trade associations
Small-business networks
Pooling
Accountants
Bankers
Lawyers
Insurance agents
Computer consultants
Management Help
Professional Help
Outside Help
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–10
10
Franchising
Reduced financial risk
Franchiser support
Advantages
Franchise start-up costs
Limitations of franchise
Loss of independence
Disadvantages
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–11
11
The Performance of Entrepreneurial Organizations
Crossovers to small business by former large-business employees
The emergence of E-commerce
Trends in New Business Start-Ups
Better survival rates for small businesses
Increased entrepreneurial opportunities for minorities and women
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–12
12
Entrepreneurial Success and Failure
Insufficient capital to sustain the business
Incompetence/ inexperience
Entrepreneurial Success
Hard work, drive, and dedication
Careful analysis of market conditions
Competence and experience
Not devoting sufficient time and effort
Weak internal control systems
Luck
Reasons for Failure
Reasons for Success
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5–13
13
