Chapter 6 – Entrepreneurship and Small Business
THE NATURE OF ENTREPRENEURSHIP
Entrepreneurship: Strategic thinking and risk-taking behavior that results in the creation of new
opportunities for individuals and/or organizations.
Who are the entrepreneurs?
oRisk-taking individuals who take actions to pursue opportunities and situations others may
fail to recognize or may view as problems or threats.
oStarts new ventures that bring life to new product and service ideas
oFounders of businesses that become large-scale enterprises.
Characteristics of entrepreneurs:
oPeople who: Buy a local franchise outlet, open a small retail shop, operate a self-employed
oPeople who introduce a new product or operational change in an existing organization
oHigh energy level, high need for achievement, self-confidence, passion, control
ENTREPRENEURSHIP AND SMALL BUSINESSES
Ones with 100 or fewer employees and independently owned and operated.
50 percent of the private labour force works in small businesses.
Are established by:
oStarting a new business.
oBuying an existing business.
oBuying and running a franchise.
Why They Fail…
oLack of experience , lack of expertise, lack of strategy and strategic leadership, poor
financial control, growing too fast, insufficient commitment, ethical failure
Entrepreneurship and the Internet
The Internet offers numerous entrepreneurial opportunities.
oOnline buying and selling
Businesses are limited only by personal creativity.
Business-to-Business (B2B) ventures are possible.
International Business Entrepreneurship
Provides strategic opportunities for small businesses.
Creates exporting and importing opportunities.
Supported through appropriate governmental and non-governmental organizations.
Family businesses …
Owned and financially controlled by family members.
Largest percentage of businesses worldwide.