1. Small Business Management, 18e
Longenecker/Petty/Palich/Hoy
Small Business Management, 18e
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2. The Entrepreneurial Life
Chapter 1
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

3. Learning Goals:
Explain the importance of small business and entrepreneurship in our society
Distinguish between the terms small business and entrepreneurial society.
Explain the basic characteristics of entrepreneurs and describe different kinds of entrepreneurship.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4. Learning Goals (cont.)
Discuss the importance of understanding your motivations and perceptions related to owning a small business.
Describe the five potential advantages of small entrepreneurial companies over large firms.
Explain the concept of an entrepreneurial legacy and its challenges.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5. 1-1 Small Size, Great Significance
Small Businesses:
Include 27.8 million businesses in the U.S.
Represent 99.7% of all firms.
Employ 49% of employees in the private sector.
Hire 43% of high-tech employees.
Represent 97% of all exporters.
Obtain college degrees.
Provide increased business ownership opportunities for veterans.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6. 1-2 What is a Small Business?
Small in size relative to larger competitors (fewer than 500 employees)
Attractive small firms offer substantial financial rewards
Microbusinesses provide modest returns
Localized business operations (except marketing)
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7. 1-2 What is a Small Business? (cont.)
Financing supplied by one person or small group
Has the potential to become more than a “one-person show”
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

8. 1-2 What is an Entrepreneurial Opportunity?
An economically attractive and timely opportunity that creates value for interested buyers or end users.
Bootstrapping
Doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9. 1-2 What is an Entrepreneurial Opportunity?
Success Stories
Kelly’s Delights (Hewitt, TX)
Blank Label (Boston, MA)
Hughes Group, LLC (Tacoma, WA)
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

10. 1-2 How to Fail as an Entrepreneur
Overestimate what you can do
Lack an understanding of the market
Hire mediocre people
Fail to be a team player, which is usually the result of taking oneself too seriously
Be a domineering manager
Fail to share ownership in the business in an equitable way
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

11. 1-3 Entrepreneurial Qualities
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

12. 1-3 Varieties of Entrepreneurship
Founder (“Pure” Entrepreneur)
A person who brings a new firm into existence
“Second Stage” Entrepreneur
An administrative entrepreneur who oversees the operations of an ongoing business
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

13. 1-3 Varieties of Entrepreneurship (cont.)
Franchisee
An entrepreneur whose power is limited by the contractual relationship with a franchising organization
Entrepreneurial Team
Two or more people working together as entrepreneurs.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

14. 1-3 Varieties of Entrepreneurship (cont.)
Social Entrepreneurship
An entrepreneurial activity whose goal is to find innovative solutions to society’s most pressing needs, problems, and opportunities.
Social Entrepreneur
Seeks ways to solve societal and environmental problems that incorporate the triple bottom line of people, profits, and the planet.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

15. 1-3 Women Entrepreneurs More Women Entrepreneurs
Nearly 9 million privately held women- owned firms in the U.S.
Only businesses provided a net increase in employment between
Movement of women into healthcare and educational services
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

16. 1-3 Women Entrepreneurs Problems Facing Women Entrepreneurs
Lack of available mentors and advisors
Lack of financing
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

17. 1-3 Think and Act Like an Entrepreneur
A successful entrepreneur:
Is intentional in your goals.
Seeks opportunities that have growth potential.
Is challenged personally.
Dreams big.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

18. 1-4 Motivations for Owning a Business
Being an entrepreneur:
Is extremely challenging.
Takes undying love and passion to keep going.
Can be passed down within a family.
Can help make the world a better place.
Can make meaning in your life.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

19. Is Owning a Small Business Right for You?
Am I passionate about my product or service?
What is my tolerance for risk?
Am I effective in making decisions?
Am I willing to take on numerous responsibilities?
Will I be able to avoid burnout?
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

20. Why People Become Entrepreneurs
Reluctant Entrepreneur
A person who becomes an entrepreneur as a result of some severe hardship.
Corporate Refugee
A person who becomes an entrepreneur to escape an undesirable situation.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

21. Entrepreneurial Motivations
1.2
Entrepreneurial Motivations
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

22. Understanding Your Business Paradigm
1.3
Understanding Your Business Paradigm
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

23. The Competitive Edge of Entrepreneurs
Customer Focus
Niche Markets
Competitive Advantages of Entrepreneurial Firms
Quality Performance
Innovation and Globalization
Integrity and Responsibility
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

24. Resources
Every small business owner should take advantage of the following websites:
U.S. Small Business Administration:
National Federation of Independent Business:
Global Entrepreneurship Monitor:
Marion Ewing Kauffman Foundation and the U.S. Commerce Department:
SCORE, a network of more than 360 offices nationwide where veteran small business executives offer free confidential advice and mentoring:
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

25. Building an Entrepreneurial Legacy
Looking Back at an Entrepreneurial Life
Proper values and actions lead to a good exit.
Evaluating accomplishments.
Winning the Wrong Game
The nature of the entrepreneurial endeavor reflects personal goals and values.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

26. Building an Entrepreneurial Legacy
Crafting a Worthy Entrepreneurial Legacy
The tangible items and intangible qualities passed to both heirs and society.
Satisfaction and Fulfillment
Achieving balance with what I want to do.
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

27. attractive small firm bootstrapping corporate refugee entrepreneur entrepreneur personality entrepreneurial legacy entrepreneurial opportunity entrepreneurial team founder franchisee high-potential venture (gazelle)
lifestyle business manager personality mentor microbusiness microloans niche market paradigm shift reluctant entrepreneur small business social entrepreneurship technician personality
© 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.