MGMT 1 Chapter 6: MGMT 1 – Chapter 6

11 Pages

Course Code
Grace Mc Laughlin

This preview shows pages 1,2 and half of page 3. Sign up to view the full 11 pages of the document.
MGMT 1 – Chapter 6: Entrepreneurship • The Age of the Entrepreneur: o Entrepreneurship: Accepting the risk of starting and running a business • The Job-Creating Power of Entrepreneurs in the United States: o The history of the United States is the history of its entrepreneurs o The United States has plenty of entrepreneurial talent • Why People Take the Entrepreneurial Challenge: o Reasons: ▪ Opportunity ▪ Profit ▪ Independence ▪ Challenge o What Does It Take to Be an Entrepreneur? ▪ Entrepreneurial attributes: • Self-directed • Self-nurturing • Action-oriented • Highly energetic • Tolerant of uncertainty o Turning Your Passions and Problems into Opportunities: ▪ While many entrepreneurs’ business ideas are inspired by their passions, many see business opportunities where others only see problems ▪ You may have a business idea that is a good opportunity if: • It fills customers’ needs • You have the skill and resources to start a business • You can sell the product or service at a price customers are willing and able to pay – and still make a profit • You can get your product or service to customers before your window of opportunity closes (before competitors with similar solutions beat you to the marketplace) • You can keep the business going o Entrepreneurial Teams: ▪ Entrepreneurial team: A group of experienced people from different areas of business who join to form a managerial team with the skill to develop, make, and market a new product ▪ A team may be better than an individual entrepreneur because team members can combine creative skills with production and marketing skills right from the start o Micropreneurs and Home-Based Businesses: ▪ Micropreneurs: Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle 2 ▪ Many home-based businesses are owned by people combining career and family while nearly 60 percent are men ▪ Reason for the growth of home-based businesses: • Computer technology has leveled the competitive playing field, allowing home-based businesses to look and act as big as their corporate competitors • Corporate downsizing has led many to venture out on their own • Social attitudes have changed • New tax laws have loosened restrictions on deducting expenses for home offices ▪ Challenges of working at home: • Getting new customers • Managing time • Keeping work and family tasks separate • Abiding by city ordinances • Managing risk ▪ Home-based entrepreneurs should focus on finding opportunity instead of accepting security, getting results instead of following routines, earning a profit instead of earning a paycheck, trying new ideas instead of avoiding mistakes, and creating a long-term vision instead of seeking a short-term payoff o Web-Based Businesses: ▪ In 2013, online retail sales reached $262 billion or approximately 8 percent of all retail sales 3 ▪ Affiliate marketing: An online marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website ▪ A web-based business isn’t always a fast road to success; it can sometimes be a shortcut to failure o Entrepreneurship within Firms: ▪ Intraprenuers: Creative people who work as entrepreneurs within corporations • The idea is to use a company’s existing resources to launch new products and generate new profits o Encouraging Entrepreneurship: What Gov’t Can Do: ▪ Part of the Immigration Act passed by congress in 1990 was intended to encourage more entrepreneurs to come to the United States ▪ The act created a category of “investor visas” that allows 10,000 people to come to the United States each year if they invest $1 million in an enterprise that creates or preserves 10 jobs ▪ Enterprise Zones: Specific geographic areas to which gov’ts try to attract private business investment by offering lower taxes and other gov’t support • Also, known as empowerment zones or enterprise communities ▪ The gov’t could have a significant effect on entrepreneurship by offering tax breaks to businesses that makes investments to create jobs ▪ The Jumpstart Our Business Startups (JOBS) Act of 2012 was enacted in an effort to make it easier for small business to raise funds and hopefully create new jobs 4 ▪ Incubators: Centers that offer new businesses low-cost offices with basic business services such as accounting, legal advice, and secretarial help ▪ Self-Employment Assistance (SEA) program: • The program allows participants to collect unemployment checks while they build their businesses ▪ The gov’t can also join with private entities to promote entrepreneurship ▪ Startup America is a White House initiative to “celebrate, inspire, and accelerate high-growth entrepreneurship throughout the nation” • Getting Started in Small Business: o Small versus Big Business: ▪ Small business: A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration (SBA)) in terms of employees or annual receipts • There are 28 million small businesses in the United States • Of all nonfarm businesses in the United States, almost 97 percent are considered small by SBA standards • Small businesses account for more than 50 percent of the gross domestic product (GDP) • Nearly 600,000 tax-paying, employee-hiring businesses are started every year 5 • Small businesses have generated 65 percent of the new jobs since 1995 • Small businesses employ about half of all private- sector employees • About 80 percent of U.S. workers find their first jobs in small businesses o Importance of Small Businesses: ▪ Small firms believe they offer other advantages over larger companies – more personal customer service and the ability to respond quickly to opportunit
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.