Abka yare.pptx

8/10/2019 Abka yare.pptx

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Group name



Student of presentation



Topics of presentation•

Introduction of small business



Introduction of small business• Small business by its size in various industries

• Advantages and disadvantages of owning a

small business

•

Business owners personal characteristics thatcontribute to the success of a new business

• Failure of small businesses and factors that

lead to success



Concept of small business•

is any independently owned and operatedbusiness, not dominant in its competitive area

• We must be much more precise because sizeis relative to a specific industry.

• In order to establish a common basis fordiscussion, the United States small businessadministration guidelines are used.

• Small business administration guidelines are those characteristics of a firm that define asmall business.



Trends in Small Business Start-ups



Entrepreneurship vs. Small Business•

Entrepreneur : Accepts the risks andopportunities of creating, operating and

growing a new business

• Small Business Owner : Does not have

plans for growth



Entrepreneurship• An entrepreneur is a person with the need to

build and create something new.

• If his or her organization is to survive, theentrepreneur must be a businessperson, yet notall business people are entrepreneurs.

• Entrepreneurs process a: – Strong need for control

– Independence

– Keen intuition

– A need to build and create

– An ability to simplify complex problems



Entrepreneurship

• Entrepreneur

– businessperson who accepts both the risks and

the opportunities involved in creating and

operating a new business venture

• Entrepreneurship

the process of seeking business opportunities under

conditions of risk





• Entrepreneurs are:

– Hard workers who willingly accept responsibility

– Optimistic and have an exceptionally strong desireto achieve

• Not all small business people areentrepreneurs, nor need they be.

• The ability to break away from security to starta new business depends upon not havingpersonal responsibilities that make it difficult

to take risks.• Being an entrepreneur requires both time and

financial flexibility.



The free-choice period for the would-be entrepreneur



Crafting a Business Plan

1. What are the entrepreneur’s goals and

objectives?

2. What strategies will be used to obtain them?

3. How will these strategies be implemented?



Entrepreneurial Characteristics

• Resourcefulness

• Concern for good, personal customer relations

•

Strong desire to be their own bosses• Deal with uncertainty and risk



Starting and Operating

a New Business

• Business plan

– Document in which the entrepreneur describes

her or his business strategy for the new venture

and demonstrates how it will be implemented




• Setting Goals and Objectives

• Sales Forecasting

•

Financial Planning




1. What are the entrepreneur’s goals and

objectives?

2. What strategies will be used to obtain them?

3. How will these strategies be implemented?



Starting the Small Business

Buying an Existing

Business

Franchising

Starting fromScratch



Getting Started

Buying an

ExistingBusiness

Starting

FromScratch





Starting from Scratch

• Who and where are my customers?

• How much will those customers pay for my

product?

• How much of my product can I expect to sell?

• Who are my competitors?

•

Why will customers buy my product ratherthan the product of my competitors?



Financing the Small Business

• Personal resources

• Loans from family and friends

• Bank loans

• Venture capital companies

• Small-Business Investment Companies (SBICs)

• Minority Enterprise Small-Business Investment

Companies (MESBICs)

• SBA financial programs



Reasons for Success

1. Hard work, drive, and dedication

2. Market demand for the products or services

being provided

3. Managerial competence

4. Luck



Reasons for Failure

1. Managerial incompetence or inexperience

2. Neglect

3. Weak control systems4. Insufficient capital



Three Forms of Business



. Firms in Terms of

Organization Type and Sales Revenue



Impact of Small Business



Impact of Small Business



• Services

•

•

• 66% of the economy

• Employs 70% of workforce

•

The Geek Squad – one-man service firm,1994



Advantages of Small Business

Ownership



Advantages of Small Business

Ownership

• Costs

• Flexibility

• Focus

• Reputation



Disadvantages of Small-Business

Ownership

• High Stress Level

• High Failure Rate

• 90% of all new businesses fail within the first 5

years

• Undercapitalization

• Lack of funds to operate a business normally

• Managerial Inexperience or Incompetence• Inability to Cope with Growth



Small-Business Ownership



The Business Plan

• Business Plan – a precise statement of the rationale for the

business and a step-by-step explanation of how it will achieve

its goals. Acts as a guide and reference document.

• Explanation of the business

• Analysis of competition

• Income/Expense estimates

•



Forms of Business Ownership

•Sole Proprietorship

•Partnership

•Corporation



The Future for Small Business

• Demographic Trends

•Boomers, echo boomers (millennials), Generation Y

• Immigrants (12% of U.S. population)

• Technological & Economic Trends

• Internet usage continues to increase

• Increase in service exports• Economic turbulence

• Deregulation of the energy market & alternative fuels



Big Businesses Acting “small”

1. Large firms emulate smaller ones to improvebottom line

2. Downsizing or rightsizing

3. Acting small from inception – Southwest Airlines

4. Entrepreneurs – individuals in large firms whotake responsibility for the development ofinnovations within the organization

Documents

Abka yare.pptx