Discussion Topic 3
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Chapter6.pptxStarting Your Own Business http://www.wileybusinessupdates.com
Chapter
6
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Define what is an entrepreneur?
Describe the environment for entrepreneurs.
Outline the process of starting a new venture.
Summarize different ways to finance new ventures.
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Learning Objectives
Explain why people choose entrepreneurship as a career path.
Identify the different categories of entrepreneurs.
Describe the franchising alternative.
Explain how organizations promote intrapraneurship.
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An entrepreneur is a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.
Differ from many small-business owners in their strong desire to make their business grow.
Differ from managers through their overriding responsibility to use the resources of the organization to accomplish their goals.
Willing to take risks.
What is an Entrepreneur?
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The Environment for Entrepreneurs
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The rapid globalization of business has created many opportunities for entrepreneurs.
Globalization
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Education
100 U.S. colleges and universities offer entrepreneurship majors.
Universities are helping students launch businesses.
Many programs teach entrepreneurship to young people.
Information Technology
Technology has given entrepreneurs tools that help them compete.
Entrepreneurs have used information technology to revolutionize industries.
Education and Information Technology
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Selecting a Business Idea
Find something you love to do and are good at doing
Can your idea satisfy a need in the marketplace?
Entrepreneurs must be sure that the idea they choose has interest in the marketplace.
Business Plan
Starting a New Venture
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58% of the most recent Inc. CEOs did not create a formal written plan.
But business plans do help entrepreneurs prepare enough resources and stay focused on key objectives.
Creating a Business Plan
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Seed capital
Self-Financing
Debt Financing
Credit Cards
Family and Friends
Bank Loans (SBA backed)
Equity Financing
Venture Capitalists
Angel Investors
Crowd Funding
Financing Your Venture
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Business Incubators are a key way government supports new ventures
Clean Energy Incubator (CEI)
Enterprise Zones
Encourage entrepreneurship in specific geographic areas
Government Support for New Ventures
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In a recent year, 560, 000 new businesses created in the United States, with highest rate in construction and service industries
The past two decades have shown a heightened interest in entrepreneurial careers.
People choose entrepreneurship for many reasons:
Heightened publicity surrounding celebrity entrepreneurs
Dissatisfaction with traditional work
Their ideas fulfill customer needs
Entrepreneurship as a Career
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Reasons to Choose Entrepreneurship
Pursuing Your Vision
Entrepreneurs pursue their vision with relentless passion.
Being Your Own Boss
Self-management is the motivation that drives many entrepreneurs.
Achieving Financial Success
Entrepreneurs are wealth creators.
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Categories of Entrepreneurs
Classic Entrepreneurs
Serial Entrepreneurs
Social Entrepreneurs
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Characteristics of Entrepreneurs
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Vision - entrepreneurs begin with an overall idea for how to make their business ideas successful
High Energy Level - a willingness to work hard
Need to Achieve - entrepreneurs work hard because they want to excel
Self-Confidence - fearlessness in the face of difficult odds
Tolerance for Failure - entrepreneurs are not easily discouraged
Creativity - entrepreneurs devise innovative ways to overcome difficult problems and situations
Tolerance for Ambiguity - entrepreneurs take in stride uncertainties
Internal Locus of Control - entrepreneurs believe they can control their own fates
Entrepreneurial Characteristics
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Advantages:
Less risky than establishing entirely new firm
Business sectors currently experiencing the most growth are quick-service restaurants, retail food, and personal and business services.
The Franchising Alternative
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Promoting innovation within organizational structures
An idea to promote creativity
Companies promote in a variety of ways
Skunkworks
Access to resources
Promoting Intrapreneurship
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