Intro to Business Chapter 6 Entrepreneurship and Small Business Management

1. 6-1 Becoming an Entrepreneur 6-2 Small Business Basics 6-3 Starting a Small Business Intro to BusinessChapter 6Entrepreneurship and Small Business Management

2. 6-1 Becoming an Entrepreneur • Entrepreneur – • Entrepreneurship –

3. 6-1 Becoming an Entrepreneur • Characteristics of Entrepreneurs • Come from all _____ and _____ categories • Varied levels of __________ • Must have an understanding of business __________ • Many entrepreneurs ask for ______ in starting a business • See figure 6-1 (pg 128) for personality characteristics of successful entrepreneurs

4. 6-1 Becoming an Entrepreneur • Entrepreneurship and the Economy • ________ Americans age 18-64 is involved in some type of entrepreneurship activity • Over _____of new jobs were created by businesses with fewer than 500 employees • Business with a single owner account for more than __________in sales annually • Small businesses are responsible for more than ______of the U.S. GDP

5. 6-1 Becoming an Entrepreneur • Financing a Small Business • Most of the money needed to start a new business comes from the ___________or his or her ______ and __________ • Venture Capital – • Loans from _______and credit given by _______ are other sources of financing

6. 6-1 Becoming an Entrepreneur • Business opportunities • Innovation – • Improvement – • Business risks

7. 6-2 Small Business Basics • Small Business – • ________ of all U.S. businesses are small businesses • A Typical Small Business: • Is managed by the _______ • Serves a _____________ • Operates is one or very few _________ • Is _____ _________ in its field

8. 6-2 Small Business Basics • Small Business Advantages • Can _________ in areas big businesses can’t/won’t • Serve fewer _________ and have more contact with them than big businesses • More likely to be located close to their customers • Can provide more individual __________ • Can get more immediate _________ from customers regarding their wants and needs

9. 6-2 Small Business Basics • Common Small Business Problems • Small businesses have a high failure rate.

10. 6-2 Small Business Basics • Small Business Assistance • University and college professors • Chamber of Commerce • Small Business Administration (SBA) – • Service Corps of Retired Executives (SCORE)

11. 6-3 Starting a Small Business • Start with an _______ • Hobbies, interests, business experiences • Find the right ______ to open the business • Assemble a ______ • Employees, service providers (accountant, lawyer, etc.) • Prepare and _________ • Develop a _________ _____

12. 6-3 Starting a Small Business • Business Plan – • Description of the business (products and services, location, goals) • Ownership structure • Customer analysis (sales forecast) • Operations plan • Marketing plan • Financial plan (budget, sources of financing, start-up costs, projected financial statements)

13. 6-3 Starting a Small Business • Most popular use of a business plan is to _______ __________ • __________________– the amount of money needed to open the business (inventory, supplies, licenses) • __________________– the money needed to pay for the current operating activities of the business; less than one year • __________________– the money needed for the main resources of the business that will last for many years (land, buildings, equipment) • Sources of financing include a combination of owner-supplied funds and borrowed funds