1. 1 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Chapter 6: Women-Owned and Minority-Owned Businesses

2. 2 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Learning Objectives To realize women-owned businesses have grown rapidly since 1980 as a result of many factors To understand why women-owned businesses are often smaller than those owned by men To be able to explain why there has been a substantial increase in minority-owned businesses in recent years To be able to explain the challenges and opportunities faced by women- and minority- entrepreneurs

3. 3 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Women-Owned Businesses 35 percent of all U.S. businesses Generate $2.3 trillion in sales Employ 19.1 million people Generate $492 billion in salaries and wages

4. 4 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Female Entrepreneurs Motivation Dissatisfaction with corporate life Work/life balance Desire for challenge

5. 5 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Smaller Size of Women-Owned Businesses Motivational differences Company age and industry Possible obstacles

6. 6 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Motivational Differences Need for work/life balance Define success differently than men

7. 7 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Company Age and Industry Women-owned businesses Often in service sector Often younger than those owned by men

8. 8 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Possible Obstacles Start-up funds less for women-owned businesses Lack of access to capital?

9. 9 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Breaking the Tradition Women President’s Organization Two million dollars in annual sales One million dollars in annual sales for service businesses Business growth in non-traditional industries

10. 10 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Women Entrepreneurs in Other Countries Female entrepreneurs increasing across the globe Percentage of female entrepreneurs expected to double by the year 2009 In Africa, women comprise the majority of entrepreneurs in the “small-scale economy”

11. 11 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Minority Entrepreneurs Three subgroups Ethnic entrepreneurs Immigrant entrepreneurs Minority entrepreneurs

12. 12 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Ethnic Entrepreneurs Share common national background or migration experience Not always immigrants

13. 13 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Immigrant Entrepreneurs Recently arrived in the United States May start businesses as a means of survival

14. 14 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Minority Entrepreneurs Any individual not of majority population African-American Hispanic/Latin Asian, Pacific Islanders, American Indians Alaskan descent

15. 15 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 African-American Entrepreneurs African-Americans were entrepreneurs as early as the late 1700s Substantial increase in number in past few decades Expected to reach 2.2 million businesses by 2010

16. 16 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Asians and Pacific Islanders Successful in industries from hotels to high-tech Korean Americans have highest self- employment rate of any ethnic or racial group

17. 17 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Hispanic Entrepreneurs Includes: Mexicans Cubans Spaniards Puerto Ricans Others from South America Mexicans own the greatest number of firms

18. 18 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 American Indians and Alaska Natives Rate of entrepreneurship has grown rapidly in recent years Majority of businesses exist in Alaska, California, Texas, Oklahoma, and Florida

19. 19 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Obstacles Lack of access to capital Racism

20. 20 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Opportunities Increasing minority population Increasing interest in entrepreneurship among ethnic groups

21. 21 ENTREPRENEURSHIP, 4/e By Lambing and Kuehl PRENTICE HALL ©2007 by Pearson Education, Inc. Upper Saddle River, NJ 07458 Women and Minority Entrepreneurs in the Business Plan Stress education and relevant work experience Be convincing and persistent