Monday, March 28, 2011
GMS 200 – WEEK 11
Entrepreneurship and Small Business Management
1. What is entrepreneurship?
2. What is special about small businesses?
3. How does one start a new venture?
4. What resources support entrepreneurship and business development?
Study Question 1
Entrepreneurship: strategic thinking and risk-taking behaviour that results in the creation of new
opportunities for individuals and/or organizations
Entrepreneurs: risk-taking individuals who take actions to pursue opportunities and situations others
may fail to recognize or may view as problems or threats – founders of businesses that become large-
o Examples: Google (Larry Page and Sergey Brin), Starbucks (Jerry Baldwin, Zev Siegl, Gordon
Figure 6.1: Personal Traits and Characteristics of Entrepreneurs
Describe yourself in terms of each of the above characteristics of entrepreneurs?
Typical entrepreneurial backgrounds and experiences:
o Parents were entrepreneurs or self-employed
o Families encouraged responsibility, initiative, and independence
o Usually not successful the first time learn from their mistakes and try again
o Women own 46% of all privately owned businesses in the U.S.
o Famous Examples: Oprah, Martha Stuart, Coco Chanel, JK Rowling, Beyonce
What are the reasons for women to become entrepreneurs?
o A new idea
o Doing for themselves what they were already doing for other employers
o Seeking a pathway to opportunity
Anita Roddick: Mrs. Body Shop
www.notesolution.com o Roddick (1942 – 2007) open her own shop back in the UK in 1976
o The company was one of the first to prohibit the use of ingredients tested on animals and one of
the first to promote fair trade with third world countries
o In 2006, The Body Shop agreed to a 652.3 million pounds takeover by L’Oreal
True or False?
o Entrepreneurs are born, not made True
o Money is the key to entrepreneurial success False
o You must have a degree in business to be an entrepreneur True and False
Study Question 2
Small businesses: annual gross revenues lower than 5 million, ones with 100 or fewer employees,
independently owned and operated
50% of the private labour force works in small businesses
Entrepreneurship is a powerful force driving innovation, productivity=y, job creation, and economic
Countries with a high level of entrepreneurial activity tned to be better off economically
Entrepreneurship and the Internet:
o Internet offers numerous entrepreneurial opportunities
o Businesses are limited only by personal creativity
o Business-to-business (B2B) ventures
International business entrepreneurship:
o What opportunities are provided by the globalization for small businesses?