****************** Part 1: The Dynamic Role of Small Business 1.Starting Your Small Business 2.Family-Owned Businesses 3.Forms of Ownership of Small Business 4.Maintaining Good Government Relations and Business Ethics

****************** Chapter 1 Starting Your Small Business SW Productions/Getty Images McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

****************** Starting Your Small Business Business v. Small Business Business v. Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Trends, Challenges, Opportunities, & Concerns of Small Business Characteristics of Entrepreneurs Characteristics of Entrepreneurs Chapter 1 Ryan McVay/Getty Images 1 - 3

****************** Rapid Small Business Growth  23 Million  Employment o75% Of New Jobs o50% Of Private Employment o99% Of Employers  97% Of Exporters

****************** Entrepreneurship Today  Male- 1.9 Men Per Woman  Ethnically Diverse   Specialty Expertise  $100 B For 3.5 M Startup/Small Businesses Rim Light/PhotoLink/Getty Images

****************** Public Favors Small Business  Black Enterprise-  Entrepreneur  Inc.  Hispanic Business-  Family Business  Entrepreneurial Woman  Your Company  Etc. Royalty-Free/CORBIS

****************** Interest At Schools  Courses o20 Years Ago- None oNow- Hundreds  Ages = Positive Potential  Business Career oMales = 13% oFemales = 10%

****************** Entrepreneurial Student Organizations  Association of College Entrepreneurs  University Entrepreneurial Association  Students in Free Enterprise -

****************** Self-Employment Trend  Increased Investor Interest  Executives Taking Early Retirement  55% Want To Be Own Boss  Technological Advances Photodisc Collection/Getty Images

****************** Attractive To All Ages  More Than ½ Of Independent Workers In NYC oCollege-Educated o Years Old  84% Of Entrepreneurs “Not Worried About Future”  40% Have Management Experience  ¼ Managed/Owned Business Before Doug Menuez/Getty Images

****************** Small Business?  Independent Management  Capital/Ownership = Few Individuals  Operations Are Local  Business = Small But Competitors = Large Hisham F. Ibrahim/Getty Images

****************** SBA Definition “…a small business is one that is independently owned and operated and is not dominant in its field of operation.”

****************** Classification By Size <20 Employees Very Small Small 100 – 499 Medium 500 Or More Large

****************** Objectives Venture 1.Profit 2.Growth 3.Quick Sellout Small/Micro 1.No New Or Innovative Activities 2.Provide Owner Living

****************** Most Common Home-Based Businesses Source: Independent Insurance Agents of America

****************** Unique to Small Business  Encourage Innovation & Flexibility  Close Relationship With Customers/Community  Force Large Firms To Be Competitive  Provide Employees Learning Experience  Develop Risk Takers  New Employment  Greater Employee Job Satisfaction Royalty-Free/CORBIS

****************** Problems For Small Business  Recession/Current Economy  Retirement/Transition  Capital/Financing  Unexpected Growth  Succession  Inadequate Financing  Inadequate Management  Government Regulations/Paperwork Royalty-Free/CORBIS

****************** Challenges To Small Business  Exploding Technology  Occupational/Industry Shifts oReinvention oReengineered oDownsizing/Rightsizing  Global Chad Baker/Ryan McVay/Getty Images

****************** Declining Job Types

****************** Why Start A Small Business?

****************** Why To Not Start A Small Business?

****************** Job Satisfaction

****************** Objectives Of Small Business Owners  Achieve Independence  Additional Income  Help Families  Products Not Available Ryan McVay/Getty Images

****************** Checklist For Aspiring Entrepreneurs Passion Not Money Passion Not Money Something You Know Something You Know Patience Patience Mentor Mentor Funding Funding Cash Manager Cash Manager Build Sales Build Sales Don’t Rush Don’t Rush Wary Of Bad Advice/Suppliers Wary Of Bad Advice/Suppliers

****************** Business Objectives  Service  Profit  Social  Growth  Mesh Objectives Nick Rowe/Getty Images

****************** Characteristics Of Successful Owners +Desire Independence +Strong Sense Of Initiative +Personal/Family Motivation +Quick/Concrete Results +Able To React Quickly +Dedicated To Business +Enter Business By Chance And/Or Design

****************** Successful Small Business Management  Adequate Market  Sufficient Capital  Recruit Effectively  Timely Information  Cope With Government Regulations  Expertise  Flexible Ryan McVay/Getty Images

****************** Personal Analysis  Values  Mental Abilities  Attitudes Mel Curtis/Getty Images

****************** Where Are the New Jobs?

****************** Factors Affecting Industry/Business 1)Economics 2)Technology 3)Lifestyle 4)Political/Legal 5)Demographics Royalty-Free/CORBIS

****************** Ideas For Small Business  Career Counseling  Catering  Computer & Office Machine Repair  Day Care  Education  Financial Planning  Home Health  Marketing  Senior Fitness & Recreation  Specialized Delivery

****************** Small Business Concerns  Poorly Planned Growth  Loss Of Independence  Threat Of Failure oDiscontinuance oTypes FormalFormal Personal/InformalPersonal/Informal Jim Arbogast/Getty Images