Entrepreneurship & Small Business Management

Entrepreneur
someone who takes a risk in starting a business to earn a profit
4 process steps of entrepreneurship
1) starting
2) organizing
3) managing
4) assuming the responsibility
What does it take to be an entrepreneur? (5 things)
1) persistent
2) inquisitive
3) energetic
4) problem solving skills
5) tolerance for ambiguity
How many new businesses every year?
500,000
How many people are involved in some type of entrepreneurship activity?
1 out of 10
What percentage of employees run their own business with no help
about 40%
Where does most of the money come from needed to start a new business
his/her friends & family
How much money does fam & friends invest in new business every year
100,000 billion
What is venture capital?
money provided by large investors to finance new products & new business
Productivity:
small business are responsible for nearly half of the U.S. GDP
Productivity: #2
55% of all innovative products & services developed
Where does half the GDP come from
small business
Innovation
invention or creation that is brand new
Improvement
designed change to fix a product, service or process
1/3 of all new business
make money,
lose money,
make no profit but still operate
Over 10 years…
50% of all business will fail
3 ways a business will fail
1) low sales
2) lack of adequate capital
3) higher than expected prices