pgpse ppt by pawan (elo)

Submitted by Pawan, PGPSE Student of AFTERSCHOOOL 1–1

Small Business Management Small Business Management An Entrepreneurial Emphasis An Entrepreneurial Emphasis

Entrepreneurship:- A World of Entrepreneurship:- A World of OpportunityOpportunity

Presented by Pawan VijayE-MAIL:- [email protected]

PGPSE Student of AFTERSCHOOOL

AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS, CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME –

World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship

OPEN FOR ALL FREE FOR ALL

www.afterschoool.tkwww.afterschoool.tk


Looking AheadLooking AheadLooking AheadLooking Ahead

After studying this chapter, you should be able to:

1. Discuss the availability of entrepreneurial opportunities and give examples of successful businesses started by entrepreneurs.

2. Explain the nature of entrepreneurship and how it is related to small business.

3. Identify some motivators or rewards of entrepreneurial careers.

4. Describe the various types of entrepreneurs and entrepreneurial ventures.


Looking Ahead (cont’d.)Looking Ahead (cont’d.)Looking Ahead (cont’d.)Looking Ahead (cont’d.)

5. Identify five potential advantages of small entrepreneurial firms.

6. Discuss factors related to readiness for entrepreneurship and getting started in an entrepreneurial career.

7. Explain the concept of an entrepreneurial legacy and the challenges involved in crafting a worthy legacy.


Entrepreneurial OpportunitiesEntrepreneurial OpportunitiesEntrepreneurial OpportunitiesEntrepreneurial Opportunities

• Entrepreneurial Opportunity–A value-creating innovation with market potential–A desirable and timely innovation that creates value

for interested buyers and end users

• Success stories–SLR Contracting & Service Company

• http://www.slrcontracting.com

–AFTERSCHOOOL• http://www.afterschoool.tk

–Auntie Anne’s• http://www.auntieannes.com

http://www.slrcontracting.com/

http://www.auntieannes.com/


Who Are Entrepreneurs?Who Are Entrepreneurs?Who Are Entrepreneurs?Who Are Entrepreneurs?

• Entrepreneurs are:

–People who start and/or operate a business.

–Individuals who discover market needs and launch new firms to meet those needs.

–Risk takers who provide an impetus for change, innovation, and progress.

–All active owner-managers (founders and/or managers of small businesses).


The Independent EntrepreneurThe Independent EntrepreneurThe Independent EntrepreneurThe Independent Entrepreneur


Why People Become EntrepreneursWhy People Become EntrepreneursWhy People Become EntrepreneursWhy People Become Entrepreneurs

• Reluctant Entrepreneur–A person who becomes an entrepreneur as a result

of some severe hardship

• Refugee–A person who becomes an entrepreneur to

escape an undesirable situation


Entrepreneurial IncentivesEntrepreneurial IncentivesEntrepreneurial IncentivesEntrepreneurial Incentives

Exhibit 1.3


Reasons for Starting a New BusinessReasons for Starting a New BusinessReasons for Starting a New BusinessReasons for Starting a New Business

RECENT SURVEY RESULTS• 29% TO CREATE SOMETHING NEW• 24% TO CONTROL MY LIFE• 14% TO BE MY OWN BOSS• 14% TO MAKE MONEY• 10% TO PROVE I COULD DO IT• 09% OTHER

Source of Your New Business Idea– 38% In-depth understanding of industry/profession– 36% Market niche spotted– 7% Brainstorm– 5% Copied somebody else– 4% Hobby that grew– 10% Other


Varieties of EntrepreneurshipVarieties of EntrepreneurshipVarieties of EntrepreneurshipVarieties of Entrepreneurship

• Founder (“Pure” Entrepreneur)–A person who brings a new firm into existence

• Administrative Entrepreneur–An entrepreneur who oversees the operations of a

ongoing business

• Franchisee–An entrepreneur whose power is limited by the

contractual relationship with a franchising organization

• Entrepreneurial Team–Two or more people who work together as

entrepreneurs


Artisan EntrepreneursArtisan EntrepreneursArtisan EntrepreneursArtisan Entrepreneurs

• Artisan Entrepreneur–A person with primarily technical skills and little

business knowledge who starts a business

• Characteristics–Technical training–Paternalistic approach–Reluctance to delegate–Narrow view of strategy–Personal sales effort–Short planning horizon–Simple record keeping


Opportunistic EntrepreneursOpportunistic EntrepreneursOpportunistic EntrepreneursOpportunistic Entrepreneurs

• Opportunistic Entrepreneur–A person with both sophisticated managerial skills and

technical knowledge who starts a business

• Characteristics–Broad-based education–Scientific approach to problems–Willing to delegate–Broad view of strategy–Diversified marketing approach–Longer planning horizon–Sophisticated accounting

and financial control


Women EntrepreneursWomen EntrepreneursWomen EntrepreneursWomen Entrepreneurs

• More Women Entrepreneurs–Represent 42% of entrepreneurs in U.S.–Revenues at female-owned firms have grown 45%

from 1977 to 2007.–Women are moving into nontraditional industries.

• Problems Facing Female Entrepreneurs–Newness of entrepreneurial role–Lack of access to credit–Lack of networking

connections–Discrimination


Age

Early Career Concerns

1. Getting an education

2. Gaining work experience

3. Acquiring financial resources

Late Career Concerns

1. Fulfilling familyresponsibilities

2. Attaining seniorityin employment

3. Earning investment ina retirement program

25 35 4520

Age and Entrepreneurial OpportunityAge and Entrepreneurial OpportunityAge and Entrepreneurial OpportunityAge and Entrepreneurial Opportunity


Characteristics ofCharacteristics ofSuccessful EntrepreneursSuccessful Entrepreneurs

Characteristics ofCharacteristics ofSuccessful EntrepreneursSuccessful Entrepreneurs

• Strong commitment to the business(tenacity)

• Strong internal locus of control (self-reliant)

• Moderate risk takers(financial, career, psychic risks)


Entrepreneurial CharacteristicsEntrepreneurial CharacteristicsEntrepreneurial CharacteristicsEntrepreneurial Characteristics

• Commitment and determination– Tenacious, decisive, and

persistent in problem solving• Leadership

– Self-starters and team builders who focus on honesty in their business relationships

• Opportunity obsession – Aware of market and customer

needs• Tolerance of risk, ambiguity,

and uncertainty– Risk takers, risk minimizers,

and uncertainty tolerators

• Creativity, self-reliance, and adaptability– Open-minded, flexible,

uncomfortable with the status quo, and quick learners

• Motivation to excel– Goal oriented and aware of their

weaknesses and strengths


Characteristics of Successful Characteristics of Successful Small Business ManagersSmall Business Managers

Characteristics of Successful Characteristics of Successful Small Business ManagersSmall Business Managers

• Drive– Initiative, Persistence, Responsibility

• Thinking Ability– Original, Creative, Critical, Analytical

• Competency in Human Relations– Emotional Stability, Consideration, Cooperation, Tactfulness

• Communication Skills– Oral Comprehension and Expression, Writing Ability

• Technical Knowledge– Thorough Knowledge of the Product/Service, and Customer


Entrepreneurial CharacteristicsEntrepreneurial CharacteristicsEntrepreneurial CharacteristicsEntrepreneurial Characteristics

• Awareness of Passing Time– Sense of urgency, seize the opportunity now

• High Need for Achievement– Ambitious, likes to set own goals

• Internal Locus of Control– In control of own destiny, desire for independence

• Self-Confident– Decisive and methodical

• Self-Sacrificing and hard-working– High energy level

• Tolerant of Ambiguity and Uncertainty• Future-Oriented• Good interpersonal skills• Technically knowledgeable


Demographic FactorsDemographic FactorsDemographic FactorsDemographic Factors

• First-born within your family?

• Were your parents entrepreneurs?

• Are you a child of an immigrant?

• Was your father absent during a part of your childhood?

• Eight of every ten are over 40 years old


Taking the PlungeTaking the PlungeTaking the PlungeTaking the Plunge

• Precipitating Event–An event, such as losing

a job, that moves an individual to become an entrepreneur


The Contributions of Small Business The Contributions of Small Business The Contributions of Small Business The Contributions of Small Business

• Small Businesses:

–Represent more than 99.7 percent of all employers.

–Employ more than half of all private-sector employees.

–Pay 44.5 percent of total U.S. private payrolls.

–Generate 60 to 80 percent of net new jobs annually.

–Produce 13 to 14 times more patents per employee than do large patenting firms.


What Is a Small Business?What Is a Small Business?What Is a Small Business?What Is a Small Business?

• Our Text’s Criteria for Defining Smallness

–Financing supplied by one person or small group–Localized business operations (except marketing)–Business’ size small relative to larger competitors–Fewer than 100 employees


Major Types of Small BusinessesMajor Types of Small BusinessesMajor Types of Small BusinessesMajor Types of Small Businesses

CONCENTRATED• Agriculture• Construction• Real Estate• Retailing• Services• Wholesaling• Education

SIGNIFICANT• Manufacturing• Mining• Transportation


Small Businesses, Growth, and ProfitsSmall Businesses, Growth, and ProfitsSmall Businesses, Growth, and ProfitsSmall Businesses, Growth, and Profits

• High-Potential Venture (Gazelle)–A small firm that has great prospects for growth

• Attractive Small Firm–A small firm that provides

substantial profits to its owner

• Micro business–A small firm that provides

minimal profits to its owner

• Lifestyle Business–A micro business that permits the owner to follow a

desired pattern of living


Competitive Advantages ofCompetitive Advantages ofEntrepreneurial FirmsEntrepreneurial Firms

Competitive Advantages ofCompetitive Advantages ofEntrepreneurial FirmsEntrepreneurial Firms

• Customer Focus–Firms lack bureaucracy.

• Quality Performance–Quality is not limited

to large firms.

• Integrity and Responsibility–A solid reputation builds

loyal customers.

• Innovation–Small firms are the

leading source of innovation.

• Special Niche–Providing uniquely

specialized services can be a powerful competitive advantage.


Success of Small BusinessesSuccess of Small BusinessesSuccess of Small BusinessesSuccess of Small Businesses

Likely to Fail

• Bakeries• Car Washes• Infant Clothing Stores• Laundries• Machine Shops• Restaurants• Trucking Firms• Used Car Dealerships

2/3 Fail Within Five Years

Likely to Succeed

• Auto Tires & Accessories• Building Material Stores• Computer/Office Supplies &

Equipment• Engineering/Scientific

Equipment Mfrs• Funeral Homes &

Crematories• Liquor Stores• Seed & Garden Supply

Stores


Stages of Small Business DevelopmentStages of Small Business DevelopmentStages of Small Business DevelopmentStages of Small Business Development

EXISTENCE -- FINDING CUSTOMERS

-- PROVIDING A VALUABLE PRODUCT OR SERVICE

SURVIVAL -- GENERATING A STABLE CASH FLOW

-- HIRING ADDITIONAL PEOPLE TO KEEP UP WITH THE WORK

-- DEVELOPING A STRUCTURE

SUCCESS DISENGAGEMENT

FOLLOWS A STABILITY STRATEGY

OWNER CONTENT TO SIT BACK AND TAKE IT EASY

PERHAPS SELL THE BUSINES

GROWTHSTRATEGIC PLANS FOR GROWTH AND EXPANSION

HIRE MANAGERS FOR THE FUTURE (AND FOR VISION)

TAKE OFF -- HOW TO GROW RAPIDLY AND FINANCE THAT GROWTH

-- DELEGATION OF CONTROL TO PROFESSIONAL MANAGERS

-- PURSUIT OF VERTICAL & HORIZONTAL GROWTH STRATEGIES

MATURITY -- HAS CHARACTERISTICS OF A FUNCTIONAL, ESTABLISHED FIRM

-- HOW TO RETAIL FLEXIBILITY & ENTREPRENEURIAL SPIRIT?


10 Deadly Small Business Mistakes10 Deadly Small Business Mistakes10 Deadly Small Business Mistakes10 Deadly Small Business Mistakes

• Sticking to a single idea too long• Not having a results-driven marketing plan• Not knowing your customers• Ignoring your cash position (working capital)• Ignoring your employees (morale)• Confusing likelihood with reality• Not having a sales plan• Being a Lone Ranger (learn to delegate)• No Mastermind (get an advisory group or mentor)• Giving Up

AFTERSCHOOOL at ORKUTAFTERSCHOOOL at ORKUTAFTERSCHOOOL at ORKUTAFTERSCHOOOL at ORKUT

• Now follow AFTERSCHOOOL on your favorite social networking site Orkut.

• See upcoming Events & Competitions.• Get regular alert on upcoming Events & Competitions.• Directly Submit your name in Competitions.• Get your subject related study material.


SO TO LIVE UPDATED WITH “AFTERSCHOOOL” SO TO LIVE UPDATED WITH “AFTERSCHOOOL” JOIN “AFTERSCHOOOL” COMUNITY AT ORKUT.JOIN “AFTERSCHOOOL” COMUNITY AT ORKUT.

ThanksThanks

Submitted by Pawan, PGPSE Student of AFTERSCHOOLSubmitted by Pawan, PGPSE Student of AFTERSCHOOL

Submitted by Pawan, PGPSE Student of AFTERSCHOOLSubmitted by Pawan, PGPSE Student of AFTERSCHOOL

AFTERSCHOAFTERSCHOOLOL AFTERSCHOAFTERSCHOOLOL

pgpse ppt by pawan (elo)

Documents