Transcript Ch 5 PPT

Entrepreneurship: business started by
someone who notices a need for a
product or service
› Internet became the arena for
entrepreneurs to sell
Virtual business or a dot-com company:
business that operates on the internet
Entrepreneur: person who recognizes a
business opportunity and organizes,
manages, and assumes the risks of a
business enterprise, with the intent of
increasing the market value of the business
Risk Taker: someone who likes to take risks
› Entrepreneurs are risk takers
1. Satisfaction from taking a risk and
becoming a success
2. Showing Expertise and skills
3. Working from home
4. Gaining profit
Profit: money left over after a business
has paid all costs of producing its
goods or services.
1. Total responsibility for the business
2. Long hours
3. Financial risks
Main reason why entrepreneurs fail is
that they run out of money.
(Story of Walton Family) 8 min. 41 sec.
(History of Walmart Part 1) 6 min. 53 sec.
(History of Walmart Part 2) 6 min. 49 sec.
(Fortune 500 ranking)
(Walmart Locations)
(Stock Listing)
Small business: independently owned
business that according to the Small Business
Administration, usually has the owner as its
Good managerial skills needed for the
success of small business
Small business serves a limited geographic
area, employs fewer than 500 people, and is
not dominant in its industry
Most businesses in U.S. are small businesses
1. Being the boss
2. Opportunity to offer services large
companies cannot offer
3. Easy to form
Why a small business might not work:
1. Effect of change
› Styles and trends change.
2. Managerial skills needed
› Keeping poor records, lack of business knowledge
3. Inadequate financial planning
› Starting with too little money, not making profit
Once you’ve decided that you want to start a
business, the next step is to assess
entrepreneurial opportunities.
› Checklist to organize thinking
› Should be detailed and take time to prepare
Business Plan: written description of a new
business venture that describes all aspects of
the business.
› Helps you focus on exactly what you want to do,
how you’ll do it, and what you expect to
1. Summary
2. Company Description
3. Products and Services
4. Marketing Plan
5. Legal Plan
6. Management plan and operation
7. Financial plan