Entrepreneurship and Starting a Small Business

Why people take the entrepreneurial challenge

Independece

Opportunity

Profit

Challenge

What does it take to be an entrepreneur

highly energetic

action oriented

Self-directed

self-nurturing

Affiliate marketing: An online marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website.

Intrapreneurs: Creative people who work as entrepreneurs within corporations

Micropreneurs: Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small

Entrepreneurial team: A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product.

Getting started in small business

Don't

Start with too little capital

Buy too much on credit

Carry extravagant habits

Small business: is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts.

Managing a small business

Market

People with unsatifsfied wants and needs who have both the resources and the willingness to buy.

Getting money

Banks and finance institutions

Family and business associates

Venture capitalits

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Business plan: Written statement that describes the nature of the business, the target market, the advantages the business will have over the competition, and the resources and qualifications of the owner(s).

Going Global

Advantages over large businesses

Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies.

Small companies can usually begin shipping more faster

Small companies can provide a wide variety of suppliers

Small companies can give customers personal service and undived attention