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ENTR 452 (Entrepreneur Definitions & Discussion)

ENTR 452 (Entrepreneur Definitions & Discussion). WHAT IS DRIVING THE BOOM?. Entrepreneurs as Heroes Entrepreneurial Education Economic and Demographic Factors Shift to Service Economy Technology/Internet/E-commerce Outsourcing/International Opportunities Independent Lifestyle.

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ENTR 452 (Entrepreneur Definitions & Discussion)

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  1. ENTR 452 (Entrepreneur Definitions & Discussion)

  2. WHAT IS DRIVING THE BOOM? Entrepreneurs as Heroes Entrepreneurial Education Economic and Demographic Factors Shift to Service Economy Technology/Internet/E-commerce Outsourcing/International Opportunities Independent Lifestyle

  3. ENTREPRENEURIAL PROFILE • 1 Desire for Responsibility • 2. Preference for Moderate Risk (try to avoid risk) • 3. Confidence in their Ability to Succeed • 4. Desire for Immediate Feedback • 5. High Level of Energy • 6. Future Orientation • 7. Skill at Organizing • 8. Value Achievement over Money • High Degree of Commitment • Tolerance for Ambiguity • Flexibility • Tenacity

  4. DEFINITION: ENTREPRENEUR Not one clear definition – many books and people use different examples Book Definition: “An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act” NOTE: I would include the term “venture” and would downplay the role of “risk” Opportunity and Opportunity Recognition are central no matter what definition you choose

  5. ENTREPRENEUR WORK WEEKS

  6. ENTREPRENEURSHIP STATISTICS Only 3% of NFIB entrepreneurs took out over $75,000 after 3 years while 28% reported taking out less than $10,000. The most current estimates of failure rates show that approximately 50% of new firms fail in the first 5 years – 10% each year.

  7. ENTREPRENEURSHIP BENEFITS • 1. Opportunity to gain control of your own destiny • Opportunity to make a difference • Opportunity to reach full potential • 4. Opportunity to reap large financial gains • 5. Opportunity to contribute to society and be • recognized for your efforts • 6. Opportunity to do what you enjoy doing

  8. ENTREPRENEURSHIP DRAWBACKS • 1. Uncertainty of income • 2. Risk of losing entire investment • 3. Long hours and hard work • 4. Lower quality of life until business is established • High levels of stress • Complete responsibility • 7. Discouragement

  9. POWER OF “SMALL” BUSINESS 99.7% of U.S. businesses are “small” (fewer than 100 people) Small companies employ more than 50.2% of the U.S. private workforce - have created 79% of net new jobs - other research shows between 60-80% of all net new jobs However, 6% of small businesses are responsible for 70% of job growth (gazelles) – “mice” never grow

  10. WHY NEW BUSINESSES FAIL Management Incompetence Lack of Experience Undercapitalization Poor Cash Management Lack of Strategic Management Weak Marketing Effort

  11. HOW TO AVOID THE PITFALLS 1 Know your Business in Depth - experience - use business consultant - read/research 2. Develop a Solid Business Plan 3. Manage Financial Resources - adequate startup capital - ongoing cash management

  12. HOW TO AVOID THE PITFALLS • 4. Understand Financial Statements • Learn to Manage People Effectively • Set your Business Apart from the Competition • Keep in Tune with Yourself/Positive Attitude

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