Edwin R. Cuevas Rivera802-03-1853INTD 3355

Prof. Liz Pagán

Entrepreneurship in SMEs.

Introduction

Entrepreneur – someone who has new ideas and takes full responsibility for his action.

Focus on innovation: New products (Velcro) Current products (World Wide Web)

SMEs – Small and medium enterprises Help to create new employment opportunities

EntrepreneurVisionary, connecting the need into something

useful: In the house On the job Economic situation Local community

Example: A man while removing cockleburs (cadillos) from pants. Noticed how they did not damage his pants, he invisioned a material that could have this same effect. This lead to studies for a span of nine years producing what is known as Velcro1.

1. Romaguera, J. (2006). Chispa Empresarial: Reconociendo y haciendo realidad las oportunidades empresariales. Puerto Rico: International Entrepreneurship Institute.

EntrepeneurExample: People who have used the Web which

already existed and created services of there own. Shawn Fanning – Napster Sergey Brin and Larry Page – Google.com

It is estimated that 61% of U.S. Colleges and Universities have at least one course in entrepreneurship. (Bygrave,2004)

Many books know at days discuss the step by step process of being an entrepreneur and how to create your own SMEs.

SMEsIn the U.S.A a small and medium enterprise

is that which has less than 500 employees.But in Puerto Rico they defined as those having

less than $5,000,000 anual sales.The SMEs have produced approximately 837,000

jobs in Puerto Rico.

SMEs in Puerto RicoThe CUD1 is proposing a law that will give the

SMEs government incentives, as jsut it those to the industrial sector. (Díaz,2008)

MCS2 has created a medical insurance coverage exclusively for the SMEs. (González,2007)

CCE3 will work to grant or deny any SMEs permit, that is not in need of any public trial,in just 30 days.

1. Centro Unido de Detallistas2. Medical Card Systems3. Compañía de Comercio y Exportación

SMEs in Puerto Rico

In a ratio of 8/10 SMEs fail within the first 5 years.

50% are bankrupt in the 1st year 90% are bankrupt before there 5th year

Some of the causes are: Lack of information Low production Unplanned growth process Over saturation of the market Technological advances, etc.

Methodology

The main source of the information was secondary data:

Library books Newspaper archives Old notebooks Books used in past courses

As well as Internet searches to refresh my memory.

ConclusionDuring the research process I found:

Hundreds of book from the 1960’s – today. Many books state basically the same information, some

more indepth. The information about entrepreneurship courses is true,

since in ADEM they have a certificate on Entrepreneurship To me the set back is the time, since this is a extensive

process and there are a lot of stages to get the feeling on the subject.

But this was a subject that I feel comfortable with and when you learn about it, it drags you in.

Suggestion

Before starting your business make a business plan spanning five years, and stick to it. After those five years make a new one and so on.

References

1. Bannock, G. (2005). The Economics and Management of Small Business. London; New York: Routledge.

2. Bygrave, W., & Zacharakis, A. (2004). The portable MBA in entrepreneurship.Chicago: Irwin.

3. Díaz, M. (2003, agosto 1). Agilidad en la tramitación de permisos para Pymes. El Nuevo Día, Retrieved April 29, 2008, from http://www.adendi.com

4. Díaz, M. (2008, abril 22). Buscan crear permiso global para las pymes. El Nuevo Día, Retrieved April 29, 2008, from http://www.adendi.com

5. Díaz, M. (2008, enero 4). Beneficios para las pymes. El Nuevo Día, Retrieved April 29, 2008, from http://www.adendi.com

References6. Feliciano, J. (2008, marzo 17). Las pequeñas empresas

necesitan su impulso. El Nuevo Día, Retrieved April 29, 2008, from http://www.adendi.com

7. González, J. (2007, noviembre 11). Alternativa de seguro para las Pymes. El Nuevo Día, Retrieved April 29, 2008, from http://www.adendi.com

8. Lobato, M. (1997). La necesidad de la sociología económica: una interpretación de las políticas de promoción y ayuda a pequeñas empresas. Puerto Rico: Recinto Universitario de Río Piedras.

9. Megginson, L., Byrd, M., & Megginson, W. (2006). Small Business Management: An Entrepreneur’s Guidebook. Boston: McGraw-Hill/Irwin.

10. Romaguera, J. (2006). Chispa Empresarial: Reconociendo y haciendo realidad las oportunidades empresariales. Puerto Rico: International Entrepreneurship Institute.