Dr. Dina Preston-Ortiz

 Introductions ◦ Faculty  Academic Background  Small Business Owner  U.S. Small Business ◦ Small Business Defined ◦ Summary

Small Business Management Environment

U.S. Small Business Ownership Definition  What is a small business? ◦ Home-base to several hundred employees ◦ Independently owned and operated ◦ Not dominant in the field ◦ Meets specific industry size and standards for income and number of employees (SBA)

Small businesses serve as an entry point into the U.S. economy for new or previously slighted workers: ◦ women-owned small businesses; for instance; generate nearly a trillion dollars in revenues annually and employ more than 7 million workers. Contribute to innovation ◦ Small businesses produce 13 to 14 times more patents per employee than do large firms. ◦ Small businesses employ 39 percent of high-tech workers  scientists; engineers; and information technology workers; generating the majority of innovations that come from U.S. companies.  These businesses are able to pioneer new alliances and partnerships According to the U.S. Small Business Administration (2012), small firms represent:  99.7% of all employers, generate 60% to 80% of new jobs annually and account for 97% of all U.S. exporters.  The U.S. service exports have grown more than 289% faster than exports of goods and play a major role in fortifying the U.S. economy.  Since 1971, the U.S. service sector has generated a trade surplus that has consistently reduced the U.S. trade deficit. (p.1-8) Examples of U.S. Export Services Accounting Technical Advertising Health Care Business services Financial Consulting Professional Services Engineering Public Relations Entertainment Telecommunications Accounting Technical Advertising Health Care Business services Financial Consulting Professional Services Engineering Public Relations Entertainment Telecommunications

 Closed System/Mechanistic ◦ Bureaucratic  centralized information  Open System/Organic ◦ Virtual/technology environments  decentralized  Changing shape of organizations in 21 st Century ◦ Hourglass ◦ Cluster ◦ Virtual Organization ◦ Learning Organization  Management Implications?  Flexibility  Awareness of how culture influences behavior (Cultural Intelligence)  High context vs. low context  Individualist vs. collective cultures  Monochronic vs. polychronic time dimensions  Internpersonal space  Language and religion

SMEs Entrepreneur & SME Business  Entrepreneurs, Intrapreneurer business owners, and managers.  Characteristics ◦ Risk takers ◦ High tolerance for failure ◦ Resourcefulness ◦ Good with people ◦ Deals well with uncertainty  Pros ◦ Flexibility ◦ Superior customer service ◦ Development innovative products ◦ Fill small market niches  Cons ◦ Fewer resources ◦ Financial limitations ◦ Management inadequacies ◦ Tax burdens CharacteristicsPros & Cons

Small Business Process Small Business Start-Up Process Crafting a Business Plan Select an Idea Start-up Buy existing Franchise Build a Business Plan Marketing plan/ financials Obtain Financing Debt Equity Venture Angel Build Resources Factors of Production Executive summary Introduction Marketing Financials Staffing Needs Resume of the principals

Small Business Management Management Skill Technical Knowledge Human Relations Conceptual Decision Making Management Functions Planning Organizing Directing/Leading Controlling Organizational Culture  Top Management  Long range strategic plans  Public relations  Middle Management  Intermediate goals  tactical plans/processes  First Line Managers  Short-term goals  Operational

SMEs Planning & Business Decisions Strategic Primary objectives Mission Statements SWOT Analysis Tactical Implements strategic plan Outlines what organization must address production, marketing, personnel, finance and plant facilities Operational Day to day activities Adaptive/Contingency Plan B Crisis management Address the problem How it will be fixed Communication to the public Programmed decisions Nonprogrammed Problem/opportunity recognition Develop alternative course of action Evaluate alternatives Select and implement alternative Follow-up Decision Making  Planning Levels

 Complete SWOT Analysis: ◦ Strengths (internal) ◦ Weakness (internal) ◦ Opportunity (external) ◦ Threats (external)  Define organization’s mission statement ◦ What business are we in? ◦ What customer do we serve? ◦ How do we develop the organization’s capabilities and focus it’s efforts?  To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (Starbucks, n.d.)  Google’s mission is to organize the world’s information and make it universally accessible and useful. (Google, n.d.)

 Complete a SWOT Analysis on your University Department  Strengths  Weakness  Opportunities  Threats  (T)rends  Write a mission statement that will lead the college department in the upcoming year based on your results.  Share with class

 Define Small Business  U.S. Economic Impact of SMEs Business  SME Globalization & Management Structures  Small Business Process  Small Business Management  SME Planning Levels & Decision Making  SWOT Analysis: Strategic Planning Tools

 Kreinter, R. (2012). Management. New York, New York: Houghton Mifflin.  Ebert, R. & Griffin, R. (2012). Business Essentials. Upper Saddle New Jersey: Prentice Hall.  Starbucks (n.d.) Our Starbucks Mission Statement. Retrieved from information/mission-statement information/mission-statement  Google (n.d.) Google Company. Retrieved from