Small Business Opportunities and Rewards PDF

Small Business Its Opportunities and Rewards Chapter 01 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.  Learning Objectives LO1 Understand the scope of small busine...

Small Business Its Opportunities and Rewards Chapter 01 McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.  Learning Objectives LO1 Understand the scope of small business in the U.S. LO2 Learn the differences between small business and high-growth ventures LO3 Discover the rewards entrepreneurs can achieve through their businesses LO4 Be able to dispel key myths about small businesses LO5 Identify actions key to becoming a small business owner LO6 Understand how small businesses are important to our economy and your community 1-2  Starting an Entrepreneurial Small Business Small Business – involves 1-50 people and has its owner managing the business on a day-to-day basis Entrepreneur – a person who owns or starts an organization, such as a business 1-3  Starting an Entrepreneurial Small Business First hurdle is inaction Second hurdle is taking the right actions – What you need to do and how to do it 1-4  Starting an Entrepreneurial Small Business Small Business Administration – a part of U.S. government which provides support and advocacy for small business http://rds.yahoo.com/_ylt=A0WTefSKO1pKPA8APqmjzbkF/SIG=12hjo7o5j/EXP=1247513866/**http%3A/www.jmu.edu/sbdcenter/Logos/SBA%2520Color%2520logo.jpg 1-5 In Egypt Social Development Fund 1-6  Starting an Entrepreneurial Small Business Small Business Development Center – offices co-sponsored by states and the federal government that offer free or low- cost help to existing or potential small business 1-7  Question What is the facility which offers subsidized space and business advice to companies in their earliest stages of operation? A. Incubator B. Small Business Development Center C. SBA D. Red Hat 1-8  Starting an Entrepreneurial Small Business Incubators – a facility which offers subsidized space and business advice to companies in their earliest stages of operation 1-9  Defining a Small Business SBA defines a small business as one with fewer than 500 employees (USA) SMEs – Small enterprise 1-50 people (USA) – Medium enterprise – 51-500 people(USA) Egypt – Small enterprise 1-50 people & Capital 50,000- 1,000,000 L.E. 1-10  Small Business Owners and Entrepreneurs Entrepreneur – anyone who owns a business – Self-employed, founder, heir, franchise Owner-manager – individual who owns and runs a business 1-11 Differences between Small Businesses and High-Growth Ventures 1-12  Rewards for Starting a Small Business Growth rewards – what people get from facing and beating challenges Income rewards – money made by owning one’s own business Flexibility rewards – ability of business owners to structure life in the way that suits their needs 1-13  Myths about Small Businesses Not enough financing You can’t start a business during a recession To make profits, you need to make something If you fail, you can never try again Students don’t have the skills to start a business 1-14  Small Business and the Economy New Jobs Innovations New opportunities 1-15  Small Business and the Economy Small business is the engine of job creation, generating 75% of the 3.4 million new jobs Small businesses employ more than half of population 1-16  Small Business and the Economy Creative Destruction – the way that newly created goods, services, or firms can hurt existing competitors 1-17  Chapter One Asset, Liability, Owner’s Equity, Revenue, and Expense Accounts  Performance Objectives 1. Define and identify asset, liability, and owner’s equity accounts 2. Record a group of business transactions, in column form, involving changes in assets, liabilities, and owner’s equity Accounting Is Fun! 1-2  Performance Objectives 3. Define and identify revenue and expense accounts 4. Record a group of business transactions, in column form, involving all five elements of the fundamental accounting equation Accounting Is Fun! 1-3  Fundamental Accounting Equation A = L + OE Assets = Liabilities + Owner’s Equity Amounts Items Owner’s owed to owned investment creditors Accounting Is Fun! 1-4  Performance Objective 1 Define and identify asset, liability, and owner’s equity accounts Accounting Is Fun! 1-5  Define Asset Asset – Cash, properties, and other things of value owned by an economic unit or business entity – Provides (probable) future economic benefits Accounting Is Fun! 1-6  Identify Assets Examples of assets: – Cash – Trucks – Buildings – Shoes in a shoe store – Kites in a kite store – Accounts Receivable The amount owed to you or the business Assets that seem like Expenses – Prepaid Insurance for one year Accounting Is Fun! 1-7  Define Accounts Receivable Accounts Receivable – An account used to record the amounts owed by charge customers The business has legal claims against charge customers Look for the words: –