Entrepreneurial & Small Business Needs

Eighth Annual Financial Mathematic FestivalDepartment of MathematicsThe Florida State UniversityFebruary 25, 2006

Introduction

Students? Educators? Plan to Teach? Own a Business? Plan to Own a Business in Future? Plan to Work in Large Corporations? Plan to Work in Government?

Caveat

Data and debate: small vs. large company contributions to economic development

Response to Caveat

“Small companies are critical to the health of America’s new economy. But we’re only beginning to pierce the shroud of myth, half-truth, and outright ignorance that surrounds this dynamic sector of the marketplace.”

(“The Wonderland Economy,” by John Case. INC Magazine, May 1995.)

Why Bother?

American workers’ futures

Your Future?

More than 3 million layoffs announced by US companies between 1990 & 1996

Many experience lay-offs or firing more than once

Fired during peak earning years: “Prematurely, involuntarily retired.”

Some try to return to large corporations through prolonged job searches

Your Future?

Corporate jobs: mergers, acquisitions, troubled companies, and workforce aging

84% of senior managers in the ExecuNet.com say age discrimination starts around age 50

2004 survey of Institute of Electrical & Electronics Engineers-USA members: median age of 49 & 42% were unemployed

Your Future?

Changing employment market needs Outsourcing: your job may go to one; you may

become one 2004: experts estimated that about 11% of all US

workers (14 million) were at risk of losing their jobs to outsourcing

Demands of Wall Street; rising health costs; “proliferation of excellent, inexpensive” workers in other countries has “hastened the demise of the safe, secure white-collar job.”

Your Future?

2.3 million US jobs vanished between early 2004 and Jan. 2001: about 10% moved abroad

– “Some of those jobs may never come back. But others will take their place—created, as usual, by small companies.”

Hundreds of thousands professionals can’t find employment in positions where they’ve been successful

– Living off retirement savings 15 years earlier than planned

Your Future?

Some buy or build their own businesses, but must learn to be entrepreneurs while earning a living

“You won’t be in a high-rise corner office with five secretaries. But it’s going to be a more fun life, because you’re in charge.”

Your Future?

“Making more decisions in a day than a CEO makes in a month.”

Temping “…is now teeming with white-collar staffing agencies…short-stay CFOs and CIOs.”

Your Future?

“Multi-revenue stream” model: rent yourself to multiple companies & fledgling enterprises

“For rent” company officers not usually in a Fortune 500 company

Multiple careers in lifetime require life-long learning

Displaced workers may also choose to become stay-at-home parents

Your Future?

Reversal or slow down of this trend may come if companies don’t have enough workers when “baby boomers” retire

To some businesses, “There was a preconception that IBMers were used to large staffs & couldn’t roll up their sleeves and do work.”

Unprepared for job searches

Your Future?

Are You Ready for a Changing Future?

What skills are in your toolbox?

Options

“’I’m an optimist about the long-run economic performance of the US because of the superb entrepreneurial environment in this country.’ The answer is to encourage that culture…”

Options

Small businesses: 99.7% of all US employers Small businesses create more than 50% of US non-

farm private gross domestic product (GDP) Small patenting firms produce 13 to 14 times more

patents per employee than large patenting firms More than 24 million small businesses in the US are

located in every community and neighborhood Small businesses employ 50.1% of US non-farm

private sector workers

Options

Home-based businesses account for 53% of all small businesses

Small businesses are 97% of America’s exporters and produce 26% of all export value

Estimated 580,865 new small US firms with employees started up in the last year measured

Latest figures show that small business creates 65% or more of America’s net new jobs

Jim Moran Institute (JMI) for Global Entrepreneurship

Helps entrepreneurs with currently existing businesses to succeed without cost to them

Goal to grow economy through existing businesses Helping businesses that have employees & annual

sales between $1 M & $10 M Provides mentors for JMI businesses that have been

in existence for at least two years

JMI Services

Business consulting with JMI team Mentor/Mentee Program “Lunch with Jerry” through Tallahassee

Chamber of Commerce Executive Roundtables: business owner peer

groups for discussing areas of concern Workshops and presentations

JMI Services

Accelerator Program Pilot Guerrilla Marketing Program Pilot Articles & archives Business check lists Links to helpful sites In person & virtual assistance & coaching

JMI Services

Junior Achievement in high schools FSU Collegiate Entrepreneurs' Organization College students assisting businesses Small Business Institute (SBI) Program:

students apply their skills & knowledge to JMI clients

JMI Consulting Areas

Business plan development Financial planning Valuation of business Marketing strategy development Operational improvements Executive coaching & mentoring Information on new product development Family business consulting Referral sources for additional assistance

JMI Entrepreneur Assistance

Leadership training or assistance Organizational structure, development, or

improvement Infrastructure development Recruitment Advice or assistance with personnel matters Business process analysis Business process changes & change management

JMI Entrepreneur Assistance

Assistance with major business decisions Introduction to people who can assist the

business Assignment of a mentor Growing a business Managing people Managing money

JMI Entrepreneur Assistance

Financial analysis Accounting issues Marketing your business Sales Strategic & tactical planning Exit strategies Succession planning or disposing of your

business

JMI Entrepreneur Assistance

Entrepreneurs must be able to do it all: – Start & run every aspect of a business– Be fearless, not foolish– Cover their risks– Use their assets as collateral– Stand on reputation, delivery & services

JMI Business Metrics for Success

Improved efficiency of operations– Increased speed of business processes – Increased productivity

Increased number of employees Increased gross revenue Increased profitability Increased company stability

JMI Business Metrics for Success

Process developed for reducing debt Debt reduction Company prepared for growth or

restructuring--including reduction or stabilization

Improved capabilities of leaders Staff understanding of their roles in meeting

business needs

JMI Conclusion

“As the prospect of operating a business in the future becomes more and more complex, the JMI will be a continual source of education aimed at keeping entrepreneurs informed and prepared to meet the challenge of coming trends.”

4,000 entrepreneurs assisted over 10 years

Thank you!

Nolia Brandt, Ph.D.Associate DirectorJim Moran Institute for Global EntrepreneurshipCollege of BusinessThe Florida State Universitynoliab@brandtinfo.com850.322.8698