Introduction to Business - Chapter 5 - Entrepreneurship PDF

Introduction to Business Chapter 5 ENTREPRENEURSHIP: STARTING AND MANAGING YOUR OWN BUSINESS PowerPoint Image Slideshow Learning Outcomes 1. Why do people become entrepreneurs, and what are the different types of entrepreneurs? 2. What characteristics do successful entrepreneurs share? 3. How do sma...

Introduction to Business Chapter 5 ENTREPRENEURSHIP: STARTING AND MANAGING YOUR OWN BUSINESS PowerPoint Image Slideshow Learning Outcomes 1. Why do people become entrepreneurs, and what are the different types of entrepreneurs? 2. What characteristics do successful entrepreneurs share? 3. How do small businesses contribute to the U.S. economy? 4. What are the first steps to take if you are starting your own business? 5. Why does managing a small business present special challenges for the owner? 6. What are the advantages and disadvantages facing owners of small businesses? 7. How does the Small Business Administration help small businesses? 8. What trends are shaping entrepreneurship and small-business ownership? Table 5.1 The Economic Impact of Small Business Table 5.2 Are You Ready to be an Entrepreneur? Table 5.3 Statistics for Minority-Owned Businesses 1. Why do people become entrepreneurs, and what are the different types of entrepreneurs? CONCEPT CHECK 1. Describe several types of entrepreneurs. 2. What differentiates an entrepreneur from a small-business owner? 3. What are some major factors that motivate entrepreneurs to start businesses? Entrepreneurship What drives a person to take the risks associated with entrepreneurship, and is this drive something that a person is born with or can develop with education and practice? In the beginning of Section 5.1, the feature box Catching the Entrepreneurial Spirit declares Jack Bonneau the “quintessential entrepreneur”. View both the short video clip from IndieGoGo and the longer TEDX presentation young Jack gave in 2018. Entrepreneurship 1. 2. 3. Explain what could inspire the authors of your Introduction to Business text to select an 11-year-old for the example they provide to readers such as yourself of a successful entrepreneur? Feel free to do additional research on Jack himself or his company, Jack’s Stands & Marketplaces. Could Jack’s entrepreneurial ventures at such a young age be proof that entrepreneurs are “born rather than made”? Should parents encourage their young children to follow Jack’s path, or do you think this kind of success story is rare and that’s why it’s so fascinating and inspiring? 2. What characteristics do successful entrepreneurs share? CONCEPT CHECK 1. Describe the personality traits and skills characteristic of successful entrepreneurs. 2. What does it mean when we say that an entrepreneur should work on the business, not in it? Table 5.4 Snapshot of Small Business Owners Table 5.5 Number of Employees, by Percentage of Established Small Businesses 3. How do small businesses contribute to the U.S. economy? CONCEPT CHECK 1. What are three ways small businesses can be defined? 2. What social and economic factors have prompted the rise in small business? Small Business: Driving America's Growth What do small businesses contribute to the economic growth of the USA, and how can entrepreneurship be promoted, especially in underserved communities? Table 5.4 in Section 5.3 provides a Snapshot of Small-Business Owners. One of the sources for this information is the Kaufmann Foundation, which the late E.M. Kaufmann set up in Kansas City, Missouri with the mission to help promote small business creation, particularly in underserved communities. Small Business: Driving America's Growth 1. After watching this video, decide if both the comprehensive presentation and lively panel discussion that follows meets the stated goals of the 2019 State of Entrepreneurship Address to discuss “how, together, we can grow inclusive and empowering economies as we explore the best ways to support the makers, the doers, and the dreamers”? Table 5.6 Checklist for Starting a Business Table 5.7 Examples of Successful Entrepreneurs Table 5.7 Examples of Successful Entrepreneurs, continued Table 5.8 Key Elements of a Business Plan Executive Summary Vision and mission statement Company overview Product and/or service plan Marketing plan Management plan Operating plan Financial plan Appendix of supporting documents Table 5.9 Making a Heavenly Deal 4. What are the first steps to take if you are starting your own business? CONCEPT CHECK 1. How can potential business owners find new business ideas? 2. Why is it important to develop a business plan? What should such a plan include? 3. What financing options do small-business owners have? What risks do they face? How to Write a Business Plan As mentioned in Section 5.4, the planning process is one of the most important steps to complete before starting a business. View the video from the Young Entrepreneurs Forum and compare the 11 elements described in the video to the Key Elements of a Business Plan from Table 5.8 in your text. How to Write a Business Plan 1. What similarities and differences did you notice? Why wouldn’t the concept of the Business Plan (B Plan) be universally explained by most sources? 2. Would it make sense, then, for an entrepreneur to verify specifically what essential components of a business plan were needed for the particular audience this B Plan was intended, such as a bank, other financial institution, angel investor or venture capitalist? For example, consider FUBU mentioned in Exhibit 5.5, which eventually received a significant investment from Samsung. What do you think would have been the most important information that Samsung executives wanted to see from FUBU management before they wrote a $30 million check? 5. Why does managing a small business present special challenges for the owner? CONCEPT CHECK 1. How does the small-business owner’s role change over time? 2. How does managing a small business contribute to its growth? 3. What are the benefits to small firms of doing business internationally, and what steps can small businesses take to explore their options? 6. What are the advantages and disadvantages facing owners of small businesses? CONCEPT CHECK 1. Why are small businesses becoming so popular? 2. Discuss the major advantages and disadvantages of small businesses. 7. How does the Small Business Administration help small businesses? CONCEPT CHECK 1. What is the Small Business Administration (SBA)? 2. Describe the financial and management assistance programs offered by the SBA. The Small Business Administration How does the SBA support small business growth in the USA, and what specific resources does the SBA offer to help with Business Plans? Section 5.7 details several ways the Small Business Administration (SBA) provides assistance to small businesses, including start-ups and established organizations. In 2019, the SBA updated their business plan page to offer two different options, a traditional and a lean startup plan. The Small Business Administration 1. What are the main differences between the lean startup plan and the traditional version (See Section 5.4)? 2. Which kinds of business ventures do you think would be better suited to each kind of Business Plan? 8. What trends are shaping entrepreneurship and small-business ownership? CONCEPT CHECK 1. What significant trends are occurring in the small-business arena? 2. How is entrepreneurial diversity impacting small business and the economy? 3. How do ethics impact decision-making with small-business owners? 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