GEM Indicators PDF

GEM Indicators ============== - ##### Nascent Entrepreneurs - Those who have actively devoted resources to starting a business but who have not yet paid wages or salaries for three months (including to themselves) - ##### New Business Owners - Those starting and r...

GEM Indicators ============== - ##### Nascent Entrepreneurs - Those who have actively devoted resources to starting a business but who have not yet paid wages or salaries for three months (including to themselves) - ##### New Business Owners - Those starting and running a business and paying wages or salaries for three months or more - ##### Established Business Owners - Those running a business that has paid salaries for 42 months or more - #### TEA - Total early-stage Entrepreneurial Activity, which is the proportion of adults in a particular economy that are starting or running a new business (or the sum of Nascent Entrepreneurs plus New Business Owners) - #### EBO - Established Business Ownership is the proportion of adults running an established business - #### EEA - Levels of Employee Entrepreneurial Activity, the involvement of employees in entrepreneurial activities, such as developing or launching new goods or services The World of the Entrepreneur ================================================== - Global Entrepreneurship Monitor (GEM) study reports: - Men are twice as likely to start a business as women - Most entrepreneurs turn to family members and friends for capital - Entrepreneurs are most likely to launch businesses when they are between the ages of 35 and 44 What is Entrepreneurship? ============================================== - ### Entrepreneurship is the process of identifying, creating, and pursuing opportunities to develop innovative solutions to problems or to bring new products, services, or businesses to market. - It involves taking calculated risks, organizing resources, and assuming the financial, managerial, and operational responsibilities necessary to start and grow a venture. What is an Entrepreneur? ======================== - ### An entrepreneur is an individual who initiates and manages a business venture, assuming the associated risks and rewards. Entrepreneurs are characterized by their ability to identify opportunities, innovate, and take action to bring their ideas to fruition. Characteristics of Entrepreneurs -------------------------------- - Desire for responsibility - Preference for moderate levels of risk -- risk eliminators - Confidence in their ability to succeed - Desire for immediate feedback - High level of energy - Future orientation - Opportunity \| Necessity \| Serial entrepreneurs - Skilled at organizing - Value achievement over money Characteristics of Entrepreneurs ----------------------------------------------------- - Entrepreneurs tend to exhibit: - A high degree of commitment - Tolerance for ambiguity - Flexibility - A willingness to work hard - Tenacity Most Important Qualities ------------------------ *.* Sources of Entrepreneurial Success ------------------------------------------------------- Entrepreneurship ================ - One characteristic of entrepreneurs stands out ### Diversity! - Anyone -- regardless of age, race, gender, color, national origin, or any other characteristic -- can become an entrepreneur (although not everyone should) Entrepreneurship ===================================== Sources of Stress for Entrepreneurs ----------------------------------- Feeding the Entrepreneurial Fire ----------------------------------------------------- - Entrepreneurs as heroes - Entrepreneurial education - Demographic and economic factors - Shift to a service economy - Technological advancements - Independent lifestyle - E-commerce and the Internet, cloud computing, and mobile marketing - International opportunities, micro-multinationals U.S. Online Retail Sales ============================================= The Cultural Diversity of ------------------------------------------------ - Young entrepreneurs - Women entrepreneurs - Minority-owned enterprises - Immigrant entrepreneurs - Part-time entrepreneurs - Home-based businesses - Family businesses - Copreneurs - Corporate castoffs - Corporate dropouts - Social entrepreneurs - Retiring baby-boomers Characteristics of Women-Owned --------------------------------------------------- Small Businesses \... ========================================== - Make up 99.7% of the 28.8 million businesses in the US - Employ 48% of the nation's private sector workforce - Create more jobs than big businesses - Created 63% of net new jobs over the last decade - 5% of small companies create 67% of net new jobs in the economy - Gazelles - A small business is a business that employs fewer than 100 people - Gazelles are small companies that are growing at 20% or more per year with at least \$100,000 in annual sales; they create 70% of net new jobs in the economy The Power of "Small" Business -------------------------------------------------- Putting Failure Into Perspective ===================================================== - Entrepreneurs are not paralyzed by the prospect of failure - Failure -- a natural part of the creative process - Successful entrepreneurs learn to fail intelligently Small Business Failure Rate =========================== 010. 10 Deadly Mistakes of --------------------- 1. Management mistakes 2. Lack of experience 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan 6. Uncontrolled growth 7. Poor location 8. Improper inventory control 9. Incorrect pricing 10. Inability to make the "entrepreneurial transition" Avoiding the Pitfalls of --------------------------------------------- - Know your business in depth - Build a viable business model, and test it - Develop a solid business plan - Manage financial resources - Understand financial statements - Learn to manage people effectively - Set your business apart from the competition - Maintain a positive attitude Conclusion ========== ### Entrepreneurs... - Are an important part of the free enterprise system - Are a diverse and talented group of people - Represent a cross-section of society as a whole - Are able to enhance the profitability of their businesses through acquiring additional knowledge and experience