N_Ch7_Entrepreneurship.docx

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Department
Accounting & Financial Management
Course
AFM 131
Professor
Robert Sproule
Semester
Fall

Description
Chapter 7  Entrepreneurship – accepting a challenge of starting and running your own business. - A person of very high aptitude who pioneers change / anyone who wants to work for themselves  Entrepreneurial ventures different from small business in : o Amount of wealth creation o Speed of wealth creation o Risk – high risk of entrepreneurial venture (otherwise more people would start and would be extremely competitive) o Innovation – gives a competitive advantage (may be in new products/ production methods / markets/ forms of organization)  wealth  Why are people willing to take the challenge o A new idea, process or product o Family Pattern o Independence o Profit o Challenge o Immigrants  Important entrepreneurial characteristics Courage* o Self-directed o Highly energetic o Determined o Tolerant of Uncertainty o Action oriented o Able to learn quickly  Small and Medium size enterprises (SMEs) – refers to business with fewer than 500 employees  Significant emergence of female entrepreneurs ( now over 1/3 is woman of all entrepreneurs) o Financial need o Lack of promotion opportunities – most higher position in management are men domination o Women returning to the workforce (after raising a family) – finds skills are outdated / age discrimination o Family and personal responsibilities o Public awareness of women in business o Part time occupations o Higher rate of success for women – feels less pressured to achieve quick results; more cautious; readily accepts advice than men  Entrepreneurial team – a group of experienced people from different areas of business who join together to form managerial team with the skills needed to develop, produce and market new products  Micro-enterprise – a small business defined as having less than 5 employees  Micropreneurs – small business owners with fewer than 5 employees who are willing to accept the risk of starting and managing the type of business that remains small (allows them to do the kind of work they want to do and have a **balanced lifestyle) o Often is home based business. Reasons for home-based business  Computer technology – levelled competitive playing field (now allows home-based business to act as big as their corporate competition)  Also setting up the business takes much smaller initial investment  Corporate Downsizing – no such thing as job security  Large corporations are contacting with smaller companies to temporarily fill their needs  Change in social attitudes – now looked up to – ppl seek “how to do it advise” o Challenges in home-based business  Getting new customers  Abiding by city ordinances  Managing time  Managing risk  Keeping work and family tasks separated  There are a lot of small web based business that sell a variety of stuff  Entrepreneurships in large organizations is reflected in efforts and achievements of intrapreneurs (creative people who work as entrepreneurs within corporations) – use company’s existing resources – human/financial/physical – to launch new products & generate new profits  Incubators – centers that provide hands on management assistance, education, information, technical and vital business
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