Chapter 6 Entrepreneurship

 Control  Reap the Profit  Challenge of Something New  Opportunity Is There

 Manish Gupta, owner of Handmade Expressions  Launched company in 2005  Realized upon traveling through India that these were a number of traditional artisans that couldn’t even earn a dollar a day.  The craft would die out!  Has six employees and five Indian people who meet with local artisans and cooperatives  Find communicating is hard with folks in India!  No , cell phones often  Makes $900,000 to $1 million/year in sales, selling to 700 U.S. stores, including Papyrus and Pottery Barn

Opportunity + Resources New Value So this can apply to a for profit or nonprofit entity!

1. Self-motivated. 2. Self-assured and confident. 3. Doers, not dreamers. 4. Full of energy. 5. Alright with taking educated risks.

 20 million businesses are run out of homes in the U.S.  Many are helped through Web services (shipping or selling!)  Online sales account for 8% of all retail sales in the U.S.  24 hour business  Ease and low expense of mailing customers  Ease of reaching small target markets over large geographic areas

 In corporations  Intrapreneurs or corporate entrepreneurs  Have to have right culture  Much of the reward – not much of the risk  In incubators  Arte’ Center for the Advancement of Research, Technology, and Entrepreneurship Arte’ Center for the Advancement of Research, Technology, and Entrepreneurship

 Now 27 and 31  Founded company in 2002company  Marketed as “Art for Your Television”  Make ready-made DVDs for still photo or film that runs constantly on plasma TVs  Project sales in 2008 of over $1 million  Use feature-packed digital cameras that are really inexpensive!

 Generate 75 percent of new jobs in U.S. each year  Generate over 50% of GDP in U.S.  Generate 11 TIMES the innovations of large businesses.  Definitions of what constitutes a small business sometimes vary by industry

 You can lose your shirt!  60% of small businesses go out of business in the first six years  Owning a business is likely to be extremely stressful.  Loving a field does not mean you’ll be successful as a business owner in that field!

 The SBA (Small Business Administration) helps by backing loans made by private banks AND by providing workshops and consulting  SCORE helps by consulting and providing resources and data.  Credit, capacity, character, and collateral are all critical to getting the funding you need, should you require outside funding.

 Knowing your customers well  Understand who your market is A set of people who are willing and able to purchase your products  Good human resource management  Hiring, training, firing, motivating, examining, repositioning  Knowing accounting (or knowing someone who does)  Not being afraid to ask for help