WHAT IS SMALL BUSINESS AND ENTREPRENEURSHIP?


What is entrepreneurship?

Why are so many people becoming interested in entrepreneurship?

Are entrepreneurs born or can they be made?

What is a small business?

 

THE ENTREPRENEURIAL REVOLUTION


Major Trends in Canada

LAYOFFS

CHANGING FAMILY NEEDS


NEED FOR SMALLER BUSINESS TO SERVICE LARGER COMPANIES

RAPID TECHNOLOGICAL CHANGE

THE NEW ECONOMY

WHAT IS SMALL BUSINESS?

Small business is usually defined as one that has at least 2 of 4 characteristics:

  1. Independent Management - not part of smaller/larger company
  2. Capital from 1 or small group -Capital includes $,assets, equipment
  3. Located in small area-One location sales may go outside of region
  4. Small in comparison to competition


Reasons for Starting a Business

TOP REASONS CANADIANS START BUSINESSES
To achieve a sense of accomplishment (82%)
To be their own boss (73%)
To have an element of variety and adventure (66%)
To make better use of their training and skills(63%)
To be able to adapt their own approach to their work (62%)
To be challenged by new opportunities (61%)


1. Do you have a vision, idea, product, service to exploit? Can you do something in a different or better way?


2. Improved Quality of Life

3. Young Entrepreneurs

4. Previous Work Experience

5. Constantly Changing Society

6. Women Entrepreneurs

WHAT IS AN ENTREPRENEUR?

What can entrepreneurs do?

THE ENTREPRENEURIAL PROCESS -Elements Essential to Business Plan

  1. Available business idea or opportunity with a receptive market
  2. An organizational structure for the business
  3. Access to financial and other resources
  4. A Distinctive strategy which will set the business apart from competition and enable establishment if effectively implemented

WHAT ARE THE REQUIREMENTS FOR SMALL BUSINESS MANAGEMENT?

I PERSONAL

II GOOD CUSTOMER RELATIONS AND KNOWLEDGE OF CONSUMERISM

BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Other Conditions that Improve Chance of Success

WHAT DO YOU NEED TO START A SMALL BUSINESS?

  1. Product/service or idea for one
    (retail,manufacturing,wholesale,import, service
  2. Knowledge of Business
    Is there a demand or market/growing market?
  3. Business Plan
    -covering all operations from time of consideration-- time started usually at least one year
  4. Two Parts to a Business Plan
    A. Marketing --4P's
    * PRODUCT * PRICE * PLACE *PROMOTION
    What? How Much? Where? How?
    B. Accounting
    -projected income statements
    -balance sheets, cash flows
  5. MONEY--how much?statement of changes in cash flow
    -cash flow statements show the uses and sources of cash
    -advice from public accountant in small business
  6. Knowledge of Yourself
    -desire to do it--enthusiasm
    -ability to run a business
    -Partner/no partner

MYTHS AND REALITIES OF ENTREPRENEURSHIP

MYTH 1: Entrepreneurs are born, not made

MYTH 2: Anyone can start a business; it's luck and guts

MYTH 3: Entrepreneurs are gamblers

MYTH 4: Entrepreneurs want to run the whole show

MYTH 5: Entrepreneurs are their own bosses and completely independent

MYTH 6: Entrepreneurs work longer and harder than corporate managers

MYTH 7: Entrepreneurs have greater stress, pressure, and pay a higher personal price

MYTH 8: Starting a Business is risky and often ends in failure

MYTH 9: Money is the most important part of success

MYTH 10: New Business startup is for young and energetic

MYTH 11: Entrepreneurs are motivated for quest for money

MYTH 12: Entrepreneurs seek power, control over others to feel in charge

 



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copyright 2001 Karen E.Hamilton