Download - Strayer University IT/Entrepreneurs ( SUITE) Club Sept 11 th 2010 Seminar Prof. Mort Anvari
Strayer University IT/Entrepreneurs (SUITE) Club
Sept 11th 2010 Seminar
Prof. Mort Anvari
Strayer University IT/Entrepreneurs (SUITE) Club
Sept 11th 2010 Seminar
Prof. Mort Anvari
Mort Anvari 2
The World of the Entrepreneur
Every year in the U.S., entrepreneurs launch 850,000 new businesses.
Entrepreneurial spirit - the most significant economic development in recent history.
GEM study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business.
Arg
enti
na
Au
stra
lia
Bel
giu
mB
razi
lC
anad
aC
roat
iaD
enm
ark
Ecu
ado
rF
inla
nd
Fra
nce
Ger
man
yG
reec
eH
on
g K
on
gH
un
gar
yIc
elan
dIr
elan
dIs
rael
Ital
yJa
pan
Net
her
lan
ds
New
Zea
lan
dN
orw
ayP
eru
Sin
gap
ore
Slo
ven
iaS
ou
th A
fric
aS
pai
nS
wed
enU
nit
ed K
ing
do
mU
nit
ed S
tate
s
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Entrepreneurial Activity Across the GlobePersons per 100 Adults, 18-64 Years Old Engaged
in Entrepreneurial Activity
TEA Index
Global TEA Average
Country
To
tal
En
trep
ren
euri
al A
ctiv
ity
(TE
A)
Ind
ex
Mort Anvari
Mort Anvari 4
The World of the Entrepreneur
GEM study Globally 9.4 percent of adults are
actively engaged in trying to start a business.
Men are twice as likely as women to start a business (exactly the opposite trend in the U.S., however).
Nearly one-third of global entrepreneurs are between the ages of 25 and 44.
Mort Anvari 5
What Is an Entrepreneur?
One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.
Mort Anvari 6
Characteristics of Entrepreneurs
Desire for responsibility Preference for moderate risk –
risk eliminators Confidence in their ability to
succeed Desire for immediate feedback High level of energy Future orientation – serial
entrepreneurs Skilled at organizing Value achievement over money
Mort Anvari 7
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).
Mort Anvari 8
Benefits of Entrepreneurship
The opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society and to be
recognized for your efforts Do what you enjoy and to have
fun at it
Mort Anvari 9
Drawbacks of Entrepreneurship
Uncertainty of income Risk of losing your entire
investment Long hours and hard work
Small Business Owners' Work WeekNumber of Hours Worked per Week
Less than 30 hours11%
30 to 40 hours24%
41 to 50 hours28%
51 to 60 hours20%
More than 60 hours17%
Mort Anvari
Mort Anvari 11
Drawbacks of Entrepreneurship
Uncertainty of income Risk of losing your entire
investment Long hours and hard work Lower quality of life until the business
gets established
Entrepreneurs' Age at Business Formation
18 - 2412.0%
25 - 3432.3%
35 - 4430.6%
45 - 5417.4%
55 - 646.7%
Over 651.0%
Mort Anvari
Mort Anvari 13
Drawbacks of Entrepreneurship
Uncertainty of income Risk of losing your entire
investment Long hours and hard work Lower quality of life until the
business gets established High levels of stress Complete responsibility Discouragement
Mort Anvari 14
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 World
Wide Web
$94.0
$117.7
$142.5
$169.5
$199.3
$232.1
$-
$50.0
$100.0
$150.0
$200.0
$250.0
Re
ve
nu
es
(in
Bill
ion
s)
2003 2004 2005 2006 2007 2008
Year
U.S. Retail E-Commerce Revenues
Mort Anvari
Mort Anvari 16
Feeding the Entrepreneurial Fire
Entrepreneurs as heroes Entrepreneurial education Demographic and economic
factors Shift to a service economy Technological
advancements Independent lifestyles E-commerce and the World
Wide Web International opportunities
Mort Anvari 17
The Cultural Diversity of Entrepreneurship
Young entrepreneurs Women entrepreneurs
Why Women Start Businesses
Gain control over my schedule
46%
Saw a market opportunity and
decided to pursue it
24%
Frustrated with "glass ceiling" at
big companies23%
Other reasons7%
Mort Anvari
Mort Anvari 19
The Cultural Diversity of Entrepreneurship
Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs
Mort Anvari 20
The Cultural Diversity of Entrepreneurship
Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts
Small Business by Industry
Service39.2%
Retail20.5%
Construction11.8%
Wholesale7.4%
Manufacturing5.8%
Finance8.0%
Other7.3%
Mort Anvari
Mort Anvari 22
Small Businesses... Make up 99.7 percent of all
businesses in the U.S. Employ 51 percent of the
nation’s private sector workforce.
Create more jobs than big businesses.
Are leaders in offering training and advancement opportunities to workers.
Mort Anvari 23
Produce 51 percent of the nation’s private GDP.
Account for 47 percent of business sales.
Create 13X more innovations per employee than large companies. Zipper, FM radio, laser, air
conditioning, escalator, light bulb, personal computer, automatic transmission, and many more!
Small Businesses...
100%
81%
65%
54%46%
40%36%
32% 29% 27% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% o
f S
mal
l F
irm
s S
urv
ivin
g
New 1 2 3 4 5 6 7 8 9 10
# of Years in Business
Small Business Survival Rate
Mort Anvari
Mort Anvari 25
Ten Deadly Mistakes of Entrepreneurship
1. Management mistakes2. Lack of experience3. Poor financial control4. Weak marketing efforts5. Failure to develop a strategic
plan
Mort Anvari 26
Ten Deadly Mistakes of Entrepreneurship
6. Uncontrolled growth7. Poor location8. Improper inventory control9. Incorrect pricing10. Inability to make the
“entrepreneurial transition”
Mort Anvari 27
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.
Mort Anvari 28
Avoiding the Pitfalls of Small Business Failure
Know your business in depth
Develop a solid business plan
Manage financial resources
Understand financial statements
Learn to manage people effectively
Keep in tune with yourself