CHAPTER 1

SMALL BUSINESS: ITS

OPPORTUNITIES AND
REWARDS
Entrepreneurial Management

as the practice of taking entrepreneurial knowledge and

utilizing it for increasing the effectiveness of new business
venturing as well as small- and medium-sized businesses.

It combines the creative and innovative mindset of an

entrepreneur with the strategic planning and operational
efficiency of management.
Starting an Entrepreneurial Small Business

Small Business. Involves 1-50 people and has its

owner managing the business on a day-to-day
basis.

Entrepreneur. A person who owns or starts an

organization, such as business.
Types of approaches in an Entrepreneurial
Venture

Novelty.
Characterized by
being different or
new.
 Types of approaches in an Entrepreneurial
Venture

Imitative.
Characterized by being
like or copying
Novelty. Characterized something that already
by being different or exists.
new.
Types of approaches in an Entrepreneurial
Venture

Imitative. Characterized
Novelty. Characterized
by being like or copying
by being different or
something that already
new.
exists.

Self-employed. Working
for yourself.
 Groups of Entrepreneur

Founders. People
who create or start
new businesses.
 Groups of Entrepreneur

Franchise. A
Founders. People who prepackaged business
create or start new bought, rented, or
businesses. leased from a company
called franchisor.
 Groups of Entrepreneur

Franchise. A
Founders. People who prepackaged business
create or start new bought, rented, or
businesses. leased from a company
called franchisor.

Buyers. People who

purchase an existing
business.
 Groups of Entrepreneur

Franchise. A
Founders. People who prepackaged business
create or start new bought, rented, or
businesses. leased from a company
called franchisor.

Heir. A person who

Buyers. People who becomes an owner
purchase an existing through inheriting or
business. being given s stake in a
family business.
Small Business vs High-Growth Ventures

Small business. This are usually intended to

remain small, generally size that the owner
feels comfortable controlling personally.
Small Business vs High-Growth Ventures

Small business. This are usually intended to

remain small, generally size that the owner feels
comfortable controlling personally.

High-Growth Ventures. Starts small but are

intended to grow rapidly, often requiring a team
of partners or managers to handle growth.
Rewards for Starting a Small Business
Universally Mentioned Rewards

Flexibility. To have greater flexibility for my

personal and family life.

Income. To give myself, my spouse, and my

children and financial security.

Growth. To continue to grow and learn as a

person.
Rewards for Starting a Small Business
Occasionally Mentioned Rewards

Wealth. To have a chance to build great wealth

or a very high income.

Product. To develop an idea for a product.

 Recognition

Rewards for
Starting a Small Admiration
Business
Rarely Mentioned
Rewards
Power

Family
 Not enough financing

Myth You cant start business during

about recession.
Small To make profits, you need to
Businesses make something.
If you fail, you can never try
again.
Students don’t have the skills
to start a business.
 Boundary. Creating a place for
your business – in location and in
people’s mind.
Resources. The money, product,
knowledge, etc., that make up the
business.
Entry
Competencies Intention. The desire to start a
business.

Exchange. Moving
resources/products/services in
exchange form money.
 1. New Jobs. Small business has added
millions of new jobs. It is engine of job
generation, but it is important for existing
jobs, too.
Small Occupational Structure – the sequence or
organization of jobs and careers in the
business economy.
and the
2. Innovations. Small business is a key
Economy element of every nation’s economy because
it offers a very special environment which
the new can come into being.
Creative destruction – the way that newly
created goods, services, or firms can hurt
existing goods and services, of firms.
Introduce by Joseph Schumpeter.
 Small business and the Economy

3. New Opportunities. People who own

business are presented with tremendous
opportunities – not only to improve their life
and wealth, but also to help them move into
upward in the economy and society.
 Aspects of Global
Entrepreneurship

1. Factor-driven economy
2. Efficiency Driven Economy
3. Innovation Driven Economy
 Aspects of Global Entrepreneurship

Factor-driven economy. A nation where the

major forces for jobs, revenues, and taxes come
from farming or extractive industries like
forestry, mining, or oil production.
 Aspects of Global Entrepreneurship

Efficiency –driven economy. A nation where

industrialization is becoming the major force providing
jobs, revenues, and taxes, and where minimizing costs,
while maximizing productivity.
 Aspects of Global Entrepreneurship

Innovation-driven economy. A nation there the

major forces for jobs, revenues, and taxes come
from high-value added production based on new
ideas and technologies and from professional
services on higher education.
 Opportunity-driven
One other Entrepreneurship. Creating a
important
difference across firm to improve one’s income
countries is the or a product or service.
amounts of two
types of
entrepreneurship. Necessity-driven
Entrepreneurship. Creating a
firms as an alternative to
unemployment.
 Challenge and
the
Entrepreneurial
Way
 Strategies in Entrepreneurship

If you don’t succeed Scale back Bird in the hand Pivot

the first time, try, try,
again

Take it on the road Ask for help Plan to earn

 Focus of Entrepreneurship

CREATION CUSTOMER- EFFICIENCY INNOVATION

FOCUS
 Focus of Entrepreneurship

CREATION CUSTOMER- EFFICIENCY INNOVATION

FOCUS
 Focus of Entrepreneurship

CREATION CUSTOMER- EFFICIENCY INNOVATION

FOCUS
 Focus of Entrepreneurship

CREATION CUSTOMER- EFFICIENCY INNOVATION

FOCUS
 Forms of Independent
Entrepreneurship Entrepreneurship
 Independent
Entrepreneurship
Forms of
Entrepreneurship

Public
Entrepreneurship
 Independent
Entrepreneurship

Forms of Public
Entrepreneurship Entrepreneurship

Corporate
Entrepreneurship
 Independent
Entrepreneurship

Public Entrepreneurship
Forms of
Entrepreneurship
Corporate
Entrepreneurship

Social Entrepreneurship
Forms and Focus of Entrepreneurship
Forms of Entrepreneurship. The setting in which the
entrepreneurial effort takes place.
3. The form of entrepreneurship which takes place in
existing business around new products, services, or
markets.
4. Social Entrepreneurship. The form of
entrepreneurship involving the creation and self-
sustaining charitable and civic organizations, or for-
profit organizations which invest significant profits
in charitable activities.
Mindshare. The degree of attention your target market
pays to your idea or organization.
 Assignment:
Think about the list of reasons people give for
becoming self-employed. Interview local entrepreneurs
about their reasons and see how your real-life
examples fit with theories.

Outline:
I. Profile
II. Their reason/s for becoming self-
employed/entrepreneur
III. Documentation

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