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

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Who Starts New Businesses? % % % % 55+ 2% AGE AT START-UP

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

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved 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

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

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

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

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

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

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Hours Worked per Week 1st Year hours 8% hours15% hours23% hours28% hours13% 80 + hours12%

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

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

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

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