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Chap7understandingentrepreneurship 120615043707-phpapp01

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Pimsat.University.Karachi
Pimsat.University.Karachi

1) The document discusses understanding entrepreneurship and small business. It covers topics like what defines a small business, entrepreneurial characteristics, trends in small business success and failure, starting and financing a small business, and franchising. 2) It defines entrepreneurship and distinguishes it from small business ownership, and identifies characteristics of entrepreneurs. 3) Reasons for small business success and failure are explored, including factors like management, capital, market demand, and luck. 4) Starting a small business involves commitment, choosing a product/service, and self-assessment. Financing options and sources of advice are also reviewed.

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Chapter 7 Understanding Entrepreneurship and Small Business http://www.slideshare.net/Subjectmaterial
Sr. Chapter Chapter Heading No.No. 1. 3 Understanding the Global context of business (031012) 2. 4 Conducting Business Ethically and Responsibly (250212) 3. 6 Organizing the Business Enterprise (030312) 4. 7 Understanding Entrepreneurship and Small Business (100312) 5. 8 Managing Human Resources 6. 9 Understanding Employee Motivating, Satisfying and Leadership 7. 11 Understanding Marketing Processes and Consumer Behavior 8. 16 Managing Quality and Productivity 9. 17 Managing Information Systems and Communication Technology 10. 19 Understanding Money and Banking 11. 20 Intermediate Term and Lease Financing
Next class Quiz  Two groups  1. established entrepreneurs  What they did  Why did they stall  How could they improve  2. emerging entrepreneurs  story  What to do next 3
FINAL PROJECT  GENERATE REVENUE 4
Marks Distribution 50 Terminal Examination 20 Mid Term Examination 15 Quizzes 15 Final Assignment 5
1. WHAT IS SMALL BUSINESS 2. ENTREPRENEURSHIP 3. SUCCESS AND FAILURE IN SMALL BUSINESS 4. STARTING AND OPERATING THE SMALL BUSINESS 5. FRANCHISING
1. WHAT IS SMALL BUSINESS • The importance of small business in the economy • Popular forms of small business enterprise 2. ENTREPRENEURSHIP • The distinction between entrepreneurship and small business • Entrepreneurial characteristics 3. SUCCESS AND FAILURE IN SMALL BUSINESS • Trends in small business start-Ups • Reasons for failures • Reasons for success 4. STARTING AND OPERATING THE SMALL BUSINESS • Financing the small business • Sources of management advice 5. FRANCHISING • Advantages and Disadvantages of Franchising
What Is “Small Business”? Independently owned and managed business that does not dominate its market
The importance of Small business in Economy Job Creation Innovation Importance to Big Businesses
Popular Forms of Small-Business Enterprise Services Manufacturing  5% Finance &  Retailing Insurance Other  Construction 10% 1.7%  Financial Wholesale 8%  Insurance  Wholesaling  Transportation  Manufacturing Construction Services Retailing 37.6% 10% 22.7% Transportation 5%
2. ENTREPRENEURSHIP Entrepreneurship is the act of being an entrepreneur An entrepreneur can be defined as a businessperson who accepts the risks and opportunities of creating, operating and growing a new business Small Business Owner does not have plans for growth 11
Entrepreneurial Characteristics  Entrepreneurs are …  Founders of businesses that become large-scale enterprises.  People who:  Buy a local franchise outlet  Open a small retail shop  Operate a self-employed service business  People who introduce a new product or operational change in an existing organization 12
Entrepreneurial Characteristics Small Business Founder True Entrepreneur HE: HE: Boss Leader Lone Ranger Networker Secretive Open Self-reliant Inquisitive Seat-of-the-pants Letter of the business plan Snap decisions Consensus decision Male ownership Mixed Ownership Knows the Trade Knows the business Automation: Technology lets Innovation: Technology lets people business automate the work that do things that they’ve never done people had always done before 13
3. SUCCESS AND FAILURE IN SMALL BUSINESS 14
Trends in Small Business Start-ups Emergence of E-commerce Entrepreneurs who crossover from Big Business Increased opportunities for Minorities & Women Global Opportunities Increased Survival Rates
Reasons for Success and Failure Reasons for Failure  Poor management  Neglect  Weak control systems Reasons for Success  Insufficient capital  Hard work, drive, dedication  Market demand  Strong management  Luck!!!
4. STARTING AND OPERATING THE SMALL BUSINESS 17
Starting the Small Business First: The entrepreneurs commitment towards business Second:Choosing the goods and services, evaluating the chosen industry and market Third: Assessment of one’s own skills 18
How to start the small business 1. Buying an existing business 2. Starting from Scratch 19
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Financing the Small Business  Personal resources  Loans  Venture capital companies  Small-business investment companies  Small Business Association (SBA)  Financial aid and management advice  Advisory boards, management consultatnts, the SBA, and networking
DEFINITIONS:  Business plan:  document that tells potential lenders why money is needed, how it will be used, and when it will be repaid  Venture Capital company:  Group of small investors that invest money in companies with rapid growth potential  Management consultant:  Independent outside specialist hired to help managers to solve business problems  Networking:  Interconnections among business people for the purpose of discussing mutual problems and opportunities and perhaps pooling resources
5. FRANCHISING  Franchise is an arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (Franchiser) 23
FRANCHISING An Ownership Opportunity Advantages Disadvantages  Proven business  Start-up costs opportunity  On-going  Access to payments management  Management expertise rules and restrictions

More Related Content

Chap7understandingentrepreneurship 120615043707-phpapp01

  • 1. Chapter 7 Understanding Entrepreneurship and Small Business http://www.slideshare.net/Subjectmaterial
  • 2. Sr. Chapter Chapter Heading No.No. 1. 3 Understanding the Global context of business (031012) 2. 4 Conducting Business Ethically and Responsibly (250212) 3. 6 Organizing the Business Enterprise (030312) 4. 7 Understanding Entrepreneurship and Small Business (100312) 5. 8 Managing Human Resources 6. 9 Understanding Employee Motivating, Satisfying and Leadership 7. 11 Understanding Marketing Processes and Consumer Behavior 8. 16 Managing Quality and Productivity 9. 17 Managing Information Systems and Communication Technology 10. 19 Understanding Money and Banking 11. 20 Intermediate Term and Lease Financing
  • 3. Next class Quiz  Two groups  1. established entrepreneurs  What they did  Why did they stall  How could they improve  2. emerging entrepreneurs  story  What to do next 3
  • 4. FINAL PROJECT  GENERATE REVENUE 4
  • 5. Marks Distribution 50 Terminal Examination 20 Mid Term Examination 15 Quizzes 15 Final Assignment 5
  • 6. 1. WHAT IS SMALL BUSINESS 2. ENTREPRENEURSHIP 3. SUCCESS AND FAILURE IN SMALL BUSINESS 4. STARTING AND OPERATING THE SMALL BUSINESS 5. FRANCHISING
  • 7. 1. WHAT IS SMALL BUSINESS • The importance of small business in the economy • Popular forms of small business enterprise 2. ENTREPRENEURSHIP • The distinction between entrepreneurship and small business • Entrepreneurial characteristics 3. SUCCESS AND FAILURE IN SMALL BUSINESS • Trends in small business start-Ups • Reasons for failures • Reasons for success 4. STARTING AND OPERATING THE SMALL BUSINESS • Financing the small business • Sources of management advice 5. FRANCHISING • Advantages and Disadvantages of Franchising
  • 8. What Is “Small Business”? Independently owned and managed business that does not dominate its market
  • 9. The importance of Small business in Economy Job Creation Innovation Importance to Big Businesses
  • 10. Popular Forms of Small-Business Enterprise Services Manufacturing  5% Finance &  Retailing Insurance Other  Construction 10% 1.7%  Financial Wholesale 8%  Insurance  Wholesaling  Transportation  Manufacturing Construction Services Retailing 37.6% 10% 22.7% Transportation 5%
  • 11. 2. ENTREPRENEURSHIP Entrepreneurship is the act of being an entrepreneur An entrepreneur can be defined as a businessperson who accepts the risks and opportunities of creating, operating and growing a new business Small Business Owner does not have plans for growth 11
  • 12. Entrepreneurial Characteristics  Entrepreneurs are …  Founders of businesses that become large-scale enterprises.  People who:  Buy a local franchise outlet  Open a small retail shop  Operate a self-employed service business  People who introduce a new product or operational change in an existing organization 12
  • 13. Entrepreneurial Characteristics Small Business Founder True Entrepreneur HE: HE: Boss Leader Lone Ranger Networker Secretive Open Self-reliant Inquisitive Seat-of-the-pants Letter of the business plan Snap decisions Consensus decision Male ownership Mixed Ownership Knows the Trade Knows the business Automation: Technology lets Innovation: Technology lets people business automate the work that do things that they’ve never done people had always done before 13
  • 14. 3. SUCCESS AND FAILURE IN SMALL BUSINESS 14
  • 15. Trends in Small Business Start-ups Emergence of E-commerce Entrepreneurs who crossover from Big Business Increased opportunities for Minorities & Women Global Opportunities Increased Survival Rates
  • 16. Reasons for Success and Failure Reasons for Failure  Poor management  Neglect  Weak control systems Reasons for Success  Insufficient capital  Hard work, drive, dedication  Market demand  Strong management  Luck!!!
  • 17. 4. STARTING AND OPERATING THE SMALL BUSINESS 17
  • 18. Starting the Small Business First: The entrepreneurs commitment towards business Second:Choosing the goods and services, evaluating the chosen industry and market Third: Assessment of one’s own skills 18
  • 19. How to start the small business 1. Buying an existing business 2. Starting from Scratch 19
  • 20. 20
  • 21. Financing the Small Business  Personal resources  Loans  Venture capital companies  Small-business investment companies  Small Business Association (SBA)  Financial aid and management advice  Advisory boards, management consultatnts, the SBA, and networking
  • 22. DEFINITIONS:  Business plan:  document that tells potential lenders why money is needed, how it will be used, and when it will be repaid  Venture Capital company:  Group of small investors that invest money in companies with rapid growth potential  Management consultant:  Independent outside specialist hired to help managers to solve business problems  Networking:  Interconnections among business people for the purpose of discussing mutual problems and opportunities and perhaps pooling resources
  • 23. 5. FRANCHISING  Franchise is an arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (Franchiser) 23
  • 24. FRANCHISING An Ownership Opportunity Advantages Disadvantages  Proven business  Start-up costs opportunity  On-going  Access to payments management  Management expertise rules and restrictions

Editor's Notes

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