Starting Your Small Business
Family-Owned Businesses
Forms of Ownership of Small Business
Maintaining Good Government Relations and Business Ethics
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Part 1: The DynamicRole of Small BusinessStarting Your Small BusinessFamily-Owned BusinessesForms of Ownership of Small BusinessMaintaining Good Government Relations and Business EthicsChapter 1Starting Your Small BusinessSW Productions/Getty ImagesMcGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.Starting YourSmall BusinessBusiness v. Small BusinessTrends, Challenges, Opportunities, & Concerns of Small BusinessCharacteristics of EntrepreneursChapter1Ryan McVay/Getty Images 1 - 3Rapid SmallBusiness Growth23 MillionEmployment75% Of New Jobs50% Of Private Employment99% Of Employers97% Of ExportersEntrepreneurship TodayMale- 1.9 Men Per WomanEthnically Diverse25-34Specialty Expertise$100 B For 3.5 M Startup/Small BusinessesRim Light/PhotoLink/Getty Images Public FavorsSmall BusinessBlack Enterprise- Business- BusinessEntrepreneurial WomanYour CompanyEtc.Royalty-Free/CORBISInterest At SchoolsCourses20 Years Ago- NoneNow- HundredsAges 13-18 = Positive PotentialBusiness CareerMales = 13%Females = 10%EntrepreneurialStudent Organizations Association of College EntrepreneursUniversity Entrepreneurial AssociationStudents in Free Enterprise - TrendIncreased Investor InterestExecutives Taking Early Retirement55% Want To Be Own BossTechnological AdvancesPhotodisc Collection/Getty ImagesAttractive To All AgesMore Than ½ Of Independent Workers In NYCCollege-Educated25- 40 Years Old84% Of Entrepreneurs “Not Worried About Future”40% Have Management Experience¼ Managed/Owned Business BeforeDoug Menuez/Getty ImagesSmall Business?Independent ManagementCapital/Ownership = Few IndividualsOperations Are LocalBusiness = Small But Competitors = LargeHisham F. Ibrahim/Getty ImagesSBA Definition“a small business is one that is independently owned and operated and is not dominant in its field of operation.”Classification By Size<20 EmployeesVery Small20 - 99Small100 – 499Medium500 Or MoreLargeObjectivesVentureProfitGrowthQuick SelloutSmall/MicroNo New Or Innovative ActivitiesProvide Owner LivingMost CommonHome-Based BusinessesSource: Independent Insurance Agents of AmericaUnique to Small BusinessEncourage Innovation & FlexibilityClose Relationship With Customers/CommunityForce Large Firms To Be CompetitiveProvide Employees Learning ExperienceDevelop Risk TakersNew EmploymentGreater Employee Job SatisfactionRoyalty-Free/CORBISProblems ForSmall BusinessRecession/Current EconomyRetirement/TransitionCapital/FinancingUnexpected GrowthSuccessionInadequate FinancingInadequate ManagementGovernment Regulations/PaperworkRoyalty-Free/CORBISChallenges ToSmall BusinessExploding TechnologyOccupational/Industry ShiftsReinventionReengineeredDownsizing/RightsizingGlobalChad Baker/Ryan McVay/Getty ImagesDeclining Job TypesWhy Start ASmall Business?Why To Not StartA Small Business?Job SatisfactionObjectives OfSmall Business OwnersAchieve IndependenceAdditional IncomeHelp FamiliesProducts Not AvailableRyan McVay/Getty ImagesChecklist ForAspiring EntrepreneursPassion Not MoneySomething You KnowPatienceMentorFundingCash ManagerBuild SalesDon’t RushWary Of Bad Advice/SuppliersBusiness ObjectivesServiceProfitSocialGrowthMesh ObjectivesNick Rowe/Getty ImagesCharacteristics OfSuccessful OwnersDesire IndependenceStrong Sense Of InitiativePersonal/Family MotivationQuick/Concrete ResultsAble To React QuicklyDedicated To BusinessEnter Business By Chance And/Or DesignSuccessful SmallBusiness ManagementAdequate MarketSufficient CapitalRecruit EffectivelyTimely InformationCope With Government RegulationsExpertiseFlexibleRyan McVay/Getty ImagesPersonal AnalysisValuesMental AbilitiesAttitudesMel Curtis/Getty ImagesWhere Arethe New Jobs?Factors Affecting Industry/BusinessEconomicsTechnologyLifestylePolitical/LegalDemographicsRoyalty-Free/CORBISIdeas ForSmall BusinessCareer CounselingCateringComputer & Office Machine RepairDay CareEducationFinancial PlanningHome HealthMarketingSenior Fitness & RecreationSpecialized DeliverySmallBusiness ConcernsPoorly Planned GrowthLoss Of IndependenceThreat Of FailureDiscontinuanceTypesFormalPersonal/InformalJim Arbogast/Getty Images
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