1. Entrepreneurship & Small Business
Ch.5 - Glencoe

2. The Ins and Outs of an Entrepreneur
Entrepreneurship – is a business started by someone who notices a need for a product or service
Virtual Business (dot-com company) – is a business that operates on the internet
Entrepreneur - someone who recognizes a business opportunity and organizes, manages, and assumes the risks of a business enterprise, with the intent of increasing the market value of business

3. Entrepreneur Spotlight
Jeff Bezos, Amazon.com Founder
Opened virtual doors in July 1995
Company wanted to change book buying over the Internet
Over 29 million customers
Forging ahead in high-tech shopping

4. What makes Larry Mangel an entrepreneur?
The Biz Behind Bozart
In the early ‘90s, the art market slowed down. Larry Mangel, an art dealer, decided to change his career focus and open his own business, Bozart Toys.
What makes Larry Mangel an entrepreneur?

5. Advantages of an Entrepreneur
Risk Taker – someone who likes to take risks
Satisfaction from taking a risk and becoming a success
Showing expertise and skills
Working from home
Gaining Profit
Profit – is the money left over after a business had paid for all costs of producing its goods or services

6. Disadvantages of an Entrepreneur
Total Responsibility for the business
Long Hours
Financial Risks
Run out of money (main reason why fail)

7. Review What are two advantages of an entrepreneur?
What are two disadvantages of an entrepreneur?
What is the main reason why entrepreneurs fail?

8. Why do you think Mangel’s company became a success?
The Biz Behind Bozart
Bozart toys started with a business plan in ‘95. One year later Mangel acquired the money and produced the first you, Marco the Magnificent.
Why do you think Mangel’s company became a success?

9. Small Business: What You Need to Know
SBA – Small Business Administration
Small Business - an independently owned business that usually has the owner as its manager
Serves a limited geographic area
Employees fewer than 500 people
Not dominant in its industry

10. Small Business: What You Need to Know
In United States…
About 25 million small businesses
Employ more than 50 percent of the total workforce
Generate more than half the nation’s income
Principle sources of new jobs
Account for about 40 percent of jobs in high technology (2006)

11. Identify some reasons why a small business might be hard to manage.
The Biz Behind Bozart
Mangel manages all aspects of Bozart. He travels to China a few times a year to ensure quality control in the manufacturing of toys.
Identify some reasons why a small business might be hard to manage.

12. Advantages of Small Business
Being the Boss
Make own decisions, usually manager
Opportunity to offer services to larger companies cannot offer
Knows customers so well, they can meet individual needs
Ease of Formation
Require licenses and meet local zoning requirements

13. Disadvantages of Small Business
Effect of Change
Must be aware of changes and quickly adapt
Need flexibility and change
Be mark market savvy
Managerial Skills Needed
Must have multiple skills
Inadequate Financial Planning
Must be financially smart
Keeps a small business successfully afloat

14. Review
How does the Small Business Administration define a small business?
Give an example of a service that a small business may offer that a large company cannot offer.
Which is more difficult to form: a large business or a small business?
List two financial reasons that small business fail.

15. What are some benefits of selling toys online?
The Biz Behind Bozart
The Bozart Toy Web site shows consumers its products, but other online sites and toy stores sell the toys.
What are some benefits of selling toys online?