small business management chapter 2 the small business decision
TRANSCRIPT
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SMALL BUSINESS MANAGEMENT
Chapter 2The Small Business Decision
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CHAPTER OBJECTIVES
1. To discuss the ___________ and disadvantages of small business ownership as a starting point in making the small business decision.
2. To review the personal and organizational attributes of a successful small business owner.
3. To explain the reasons some ___________ succeed and others fail.
4. To discuss entrepreneurial development in large business.
5. To identify the differences between an ___________ and a manager.
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The Small Business Decision
Personal Evaluation Self evaluation exercise
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Advantages of Small Business Ownership
More personal ___________ with people
Independence Skill ___________ Potential ___________ Rewards Challenge ___________
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Disadvantages of Small Business Ownership
Risk ___________ Need for Many Abilities Limited Financial Rewards People ___________ Time Demands
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Entrepreneur Defined
A person who ___________ and/or operates a business.
All active owner-managers and second generation ___________ of family owned firms and owner-managers which buy out founders of existing firms.
Also includes ___________ managers of larger corporations who have a flair for innovation and risk.
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Demographic Characteristics of Entrepreneurs
Parents ___________ business Foreign parents High school degree or less ___________ or more Age 31 and under ___________ 40 or more
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Personality Characteristics Required by Successful Entrepreneurs
Achievement Orientation Risk Taking Independence, Self ___________, Self
Assurance Innovativeness Strong Verbal and ___________ Skills Selling Skills
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Personality Characteristics Required by Successful Entrepreneurs (cont)
Problem ___________ Abilities Strategic Planning___________
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The Small Business Decision
Organizational Evaluation
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Small Business Successes
Alertness to ___________ Ability to ___________ and Hold
Competent Employees Staying ___________ to the
Consumer
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Small Business Successes
Thoroughness with Operating Details
Ability to Obtain Needed Capital Effective Handling of Laws, Rules,
and Regulations
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Small Business Successes
Entrepreneurial Success in a Large Business Ten Commandments for Intrapreneur
Success
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Small Business Failures
Bankruptcies
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Entrepreneurialship and Small Business Management
Entrepreneurial Skills Characteristics
creativity, ___________, independence, risk-taking, idea oriented
Situations generating ideas and solutions to
problems, starting a new business, expanding or opening new products
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Characteristics ofArtisan EntrepreneursCharacteristics ofArtisan Entrepreneurs
Technical ______________________ approachReluctance to delegateNarrow view of strategyPersonal sales effortShort ___________ horizonSimple record keeping
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Characteristics ofOpportunistic ( Promoter) EntrepreneursCharacteristics ofOpportunistic ( Promoter) Entrepreneurs
Broad-based educationScientific approach to problemsWilling to ___________Broad view of strategyDiversified ___________ approachLonger planning horizonSophisticated accounting
and financial control
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Entrepreneurialship and Small Business Management
Managerial Skills Characteristics
develops ___________ and goal setting, prefers to know outcomes of actions or activities, team player, works through others, skills in finance, marketing, personnel, operations
Situations reaching ___________ objectives, maintaining control of operations
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Bright Lights, Deep Waters
Discuss the difference between an entrepreneur and a manager using David Green and Carmanah Lights as examples.
What dangers of obtaining equity financing are illustrated in this example?
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Concept Checks
1. List the advantages of owning a small business.
2. List the disadvantages of owning a small business.
3. What are the characteristics of successful small business owners?
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Concept Checks
4. What are the major cases of business failure?
5. What is the difference between an entrepreneur and a manager?