16 JanuaryNews PresentationEntrepreneurial technology companies are changing our worldEntrepreneurial media companies have changed our world tooAre all Start-Ups Entrepreneurships?Small Businesses DefinedWhy People Start BusinessesWhat is an entrepreneur?One storyWomen EntrepreneursStart-up StatsBut small companies can succeedPrimary Components of a New BusinessMarket demandMarket size and structure16 January Small businesses and entrepreneurshipsNews PresentationFind a story in the press that discusses the use of technology in developing a business or other entrepreneurial enterpriseFairly loose definitionsBe prepared to lead a short discussion about the value or importancePowerPoint summary or copy of articleExampleSign up on calendar – dates may change because of outside speakersEntrepreneurial technology companies are changing our worldLarge portion of growth of US economy over the past 30 years can be attributed to entrepreneurial ventures 20 years ago, Apple referred to a fruit company 5 years ago was a river in South America5 years ago was something that cowboys yelled 10 years ago was a very big numberEntrepreneurial media companies have changed our world too Twenty years ago, who would have thought that we’d be watching news, sports, music videos and the weather 24 hours a day?Are all Start-Ups Entrepreneurships?Small Businesses DefinedIndependent Management - not part of smaller/larger company Capital from 1 or small group -Capital includes $,assets, equipment Located in small area-One location sales may go outside of region Small in comparison to competitionWhy People Start BusinessesTo achieve a sense of accomplishment (82%)To be their own boss (73%)To have an element of variety & adventure (66%)To make better use of their training and skills (63%)To be able to adapt their own approach to their work (62%) To be challenged by new opportunities (61%)-- Canadian studyA person who destroys the existing economic order by introducing new products and services, by creating new forms of organization, or by exploiting new raw materials -- SchumpeterAustrian economist, 1883-1950 Someone who perceives an opportunity and creates an organization to pursue it -- BygraveEntrepreneur and author What is an entrepreneur?One storyLate ’70s, Steve Jobs and Steve Wozniak had an idea for a personal computerThere is no reason for any individual to have a computer in their home Digital, 1977 The two worked on the project in their garage and so Apple was bornWomen Entrepreneurs 8 million women in US with own business1/3 of all businessfrom 1991-1994 women led firms have created more jobs than the top 100 companies in Canada women have been creating jobs 4 x as fast as average of all firms women led business have higher survival rateWhy?Glass ceilingAlternative life styleOther?Start-up StatsApproximately 2 million new businesses are started each year in the United States About 700,000 actually register and these businesses will probably grow However, the eight year survival is only about 50%But small companies can succeedFortune 500 start-up capital25% started with less than $5,000 50% started with less than $25,000 75% started with less than $100,000 Fewer than 5% began with more than $1 million(Forbes 500 list is calculated based on sales, profits, assets, market value, and employees)Primary Components of a New BusinessOpportunityMarket demandMarket size and structureMargin analysis (can you make money?)ResourcesTeamAn “A” team with a “B” idea is better than a “B” team with an “A” ideaMarket demandAbility to gain market share Market growth Durable products and servicesPeople will want them for a long time into the future Reachable customersCustomers sense of paybackfeeling as though the purchase had some valueMarket size and structureEmerging markets room for new businessesFragmented markets large number of players, none with significant market shareNo strong competition Proprietary barriers to entrykeep large players from entering the marketpatents, trademarks, etc. Potential for high level of salesWorth the