1、Chapter 1:Entrepreneurship1Copyright 2002 Prentice Hall Publishing CompanyThe Foundations of EntrepreneurshipChapter 1:Entrepreneurship2Copyright 2002 Prentice Hall Publishing CompanyThe World of the EntrepreneurnA new business is born every 11 seconds in the United StatesnStudy of influential Ameri
2、cans defining issue of the 21st Century:Entrepreneurship!nOne of 12 Americans is actively involved in trying to start a new business.Entrepreneurial Activity Across the Globe0.0%2.0%4.0%6.0%8.0%10.0%PercentCountryPercentage of Adult Population Working to Start a New BusinessChapter 1:Entrepreneurshi
3、p4Copyright 2002 Prentice Hall Publishing CompanyWhat is an Entrepreneur?One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.Chapter 1:Entrepreneurs
4、hip5Copyright 2002 Prentice Hall Publishing CompanyCharacteristics of EntrepreneursnDesire for responsibilitynPreference for moderate risknConfidence in their ability to succeednDesire for immediate feedbacknHigh level of energynFuture orientationnSkilled at organizingnValue achievement over moneyCh
5、apter 1:Entrepreneurship6Copyright 2002 Prentice Hall Publishing CompanyBenefits of Small Business OwnershipThe opportunity to:ncreate your own destinynmake a differencenreach your full potentialnreap unlimited profitsncontribute to society and be recognized for your effortsndo what you enjoy and ha
6、ve fun at it Chapter 1:Entrepreneurship7Copyright 2002 Prentice Hall Publishing CompanyDrawbacks of Small Business OwnershipnUncertainty of incomenRisk of losing your entire investmentnLong hours and hard worknLower quality of life until the business gets establishednHigh levels of stressnComplete r
7、esponsibilitynDiscouragementChapter 1:Entrepreneurship8Copyright 2002 Prentice Hall Publishing CompanyFeeding the Entrepreneurial FirenEntrepreneurs as heroesnEntrepreneurial educationnDemographic and economic factorsnShift to a service economynTechnological advancementsnIndependent lifestylesnE-Com
8、merce and the World Wide WebnInternational opportunitiesChapter 1:Entrepreneurship9Copyright 2002 Prentice Hall Publishing CompanyThe Cultural Diversity of EntrepreneurshipnYoung entrepreneursnWomennMinority-owned enterprisesnImmigrant entrepreneursnPart-time entrepreneursnHome-based businessesnFami
9、ly businessesnCopreneursnCorporate castoffsnCorporate dropoutsSmall Business by IndustryServices39.2%Retail20.5%Wholesale7.4%Manufacturing5.8%Construction11.8%Financial8.0%Other7.3%Chapter 1:Entrepreneurship11Copyright 2002 Prentice Hall Publishing CompanySmall BusinessesnMake up 99%of all businesse
10、s in the United States.nEmploy 53%of the nations private sector workforce.nCreate more jobs than big businesses.nAre leaders in offering training and advancement opportunities to workers.Chapter 1:Entrepreneurship12Copyright 2002 Prentice Hall Publishing CompanynProduce 51%of the nations private GDP
11、.nAccount for 47%of business sales.nCreate 4X more innovations per R&D dollar spent than medium-size firms and 24X as many as large companies.Small Businesses(continued)0%20%40%60%80%100%of Small Firms SurvivingNew246810#of Years in BusinessSmall Business Survival RateChapter 1:Entrepreneurship14Cop
12、yright 2002 Prentice Hall Publishing CompanyThe Small Business Failure Recordn24%of new businesses fail after two years.n51%fail within four years.n63%fail within six years.Chapter 1:Entrepreneurship15Copyright 2002 Prentice Hall Publishing CompanyNine Deadly Mistakes of Entrepreneurship1.Management
13、 incompetence2.Lack of experience3.Poor financial control4.Failure to develop a strategic plan5.Uncontrolled growthChapter 1:Entrepreneurship16Copyright 2002 Prentice Hall Publishing CompanyNine Deadly Mistakes of Entrepreneurship(continued)6.Poor location7.Improper inventory control8.Incorrect pric
14、ing9.Inability to make the“entrepreneurial transition”Chapter 1:Entrepreneurship17Copyright 2002 Prentice Hall Publishing CompanyAvoiding the Pitfalls of Small Business FailurenKnow your business in depthnDevelop a solid business plannManage financial resourcesnUnderstand financial statementsnLearn to manage people effectivelynKeep in tune with yourself
