1. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -16-1-16-1 Entrepreneurship & Starting a Small Business

2. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -26-2-26-2 Who Starts New Businesses? 18 - 24 8% 25 - 34 71% 35 - 44 13% 45 - 54 6% 55+ 2% AGE AT START-UP

3. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -36-3-36-3 Why People Start Their Own Businesses Source: BFIB/VISA Card Primer

4. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -46-4-46-4 Small Business Revival Shift to Services Shift to Services Maturation of Baby Boomers Maturation of Baby Boomers More Women in Workforce More Women in Workforce 19701980 19902000

5. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -56-5-56-5 What is a Small Business?  Independent  Not Dominant  < 500 Employees

6. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -66-6-66-6 Entrepreneurship n Definition n Characteristics of Successful Entrepreneurs

7. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -76-7-76-7 Entrepreneurial Attributes A. Self-Directed & Self-Disciplined B. Self-Nurturing C. Action-Oriented D. Highly Energetic E. Tolerant of Uncertainty

8. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -86-8-86-8 Small Business- Advantages  Personalized Service/ Personal Contact  Flexibility  Lower Costs  Innovation Opportunities

9. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -96-9-96-9 Small Business- Disadvantages - Limited Experience - Long Hours - Insufficient Capital - High Failure Rate

10. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -10 6-10 Hours Worked per Week 1st Year 1 - 39 hours 8% 40 - 49 hours15% 50 - 59 hours23% 60 - 69 hours28% 70 - 79 hours13% 80 + hours12%

11. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -11 6-11 Most Common Types of Home-Based Businesses Source: Independent Insurance Agents of America

12. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -12 6-12 Small Businesses That… Source: USA Today

13. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -13 6-13 Road to Small Business Success  Business Plan  Sufficient Funding  Seek Advice & Assistance  Know Customer  Manage Resources & Employees  Maintain Records & Controls

14. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. -14 6-14 Capital Sources of Successful Entrepreneurs SOURCE: INC. Magazine Personal Savings Family & Friends Partners Charge Cards Bank Loans Angels & Venture Capital