powerpoint presentations for small business management: launching and growing new ventures, fifth...
TRANSCRIPT
PowerPoint Presentations for
Small Business Management: Launching and Growing New Ventures,
Fifth Canadian Edition
Adapted by Cheryl Dowell
Algonquin College
After studying this chapter, you should be able to:
1. Discuss the availability of entrepreneurial opportunities and give examples of successful businesses started by entrepreneurs.
2. Explain the nature of entrepreneurship and how it is related to small business.
3. Define small business and identify the importance of small business.
4. Identify rewards and drawbacks of entrepreneurial careers.
5. Describe the various types of entrepreneurs and entrepreneurial ventures.
6. Discuss several factors related to readiness for entrepreneurship and getting started in an entrepreneurial career.
7. Describe some characteristics of successful entrepreneurs.
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LOOKING AHEAD
• Economically attractive and timely opportunity that creates value
• True opportunity exists only for entrepreneur who has: – interest, resources, and capabilities required to
succeed
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ENTREPRENEURIAL OPPORTUNITY
LO 1
• Entrepreneurs: – active owner-managers– second-generation operators of family-owned firms– franchisees – owner managers who have bought out the founders of
existing firms
• Small business managers:– receive specified compensation – do not assume ownership risks
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ENTREPRENEURSHIP AND SMALL BUSINESS
LO 2
• Criteria– Financing supplied by one person or small group– Localized business operations (except marketing)– Business’ size small relative to larger competitors– Fewer than 100 employees
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WHAT IS A SMALL BUSINESS?
LO 3
• According to Statistics Canada, in 2009:– 1,114,915 small businesses in Canada – 2.7 million self-employed workers– 98 % have fewer than 100 employees– contribute about 42 % to Canada’s GDP– employ 48 % of total labour force in private sector– 46 % have female ownership– 87 % of Canadian exporters and make up 21 % of Canada’s
total value of exports– 75 % operate in service industries– 25 % in goods-producing industries
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WHAT IS A SMALL BUSINESS?
LO 3
CAUSES OF BUSINESS FAILURE
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• 32 % inadequate research and development• 23 % lacked competitive advantage• 14 % due to uncontrolled costs• 13 % due to poorly developed marketing
strategies• 10 % poor market timing• 8 % succumbed to competitor activities
LO 4
VARIETIES OF ENTREPRENEURSHIP
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• Founder (“Pure” Entrepreneur)– brings a new firm into existence
• General Manager (“Second Stage” Entrepreneur)– directs the continuing operations of established
firms• Franchisee
– power is limited by the contractual relationship with a franchising organization
LO 5
HIGH POTENTIAL VENTURES VS.SMALL FIRMS AND MICRO BUSINESS
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• High-Potential Venture (Gazelle)– has great prospects for growth
• Attractive Small Firm– provides substantial profits to its owner
• Micro Business (Lifestyle)– provides minimal profits to its owner
LO 5
CHARACTERISTICS OF ARTISAN ENTREPRENEURS
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• Technical skills and little business knowledge– Paternalistic approach– Reluctance to delegate– Narrow view of strategy– Personal sales effort– Short planning horizon– Simple record keeping
LO 5
CHARACTERISTICS OF OPPORTUNISTIC ENTREPRENEURS
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• Business skills and technical knowledge– Scientific approach to problems– Willing to delegate– Broad view of strategy– Diversified marketing approach– Longer planning horizon– Sophisticated accounting and financial control
LO 5
ENTREPRENEURIAL TEAMS
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• Two or more who work together as entrepreneurs• Helpful to:
• Secure a broad range of managerial talents• Enhance profits
• Useful in:• High technology businesses• Attractive small firms• High potential ventures
LO 5
GETTING STARTED IN ENTREPRENEURSHIP
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• FOUR ROUTES TO ENTREPRENEURSHIP1. Starting a new business2. Entering a family business3. Opening a franchised business4. Buying an existing business
LO 6
REFUGEES AS ENTREPRENEURS
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• Refugee– becomes an entrepreneur to escape an
undesirable situation• Foreign refugee
– leaves his or her native country and becomes an entrepreneur in the new country
• Corporate refugee– leaves big business to go into business for
themselvesLO 6
1-20
PRECIPITATING EVENTS
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• An event, such as losing a job, that moves an individual to become an entrepreneur – job termination– job dissatisfaction– unexpected opportunity
LO 6
CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
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• Internal Locus of Control:– entrepreneurs tend to hold themselves
accountable for their own successes or failures• External Locus of Control:
– non-entrepreneurs tend to believe that external circumstances, luck or fate impact upon their worlds
LO 7