The Age of the Entrepreneur entrepreneurship accepting the risk of starting and running a business The Job Creating Power of Entrepreneurs in the United States I Why People Take the Entrepreneurial Challenge 1 Opportunity 2 Profit 3 Independence 4 Challenge self directed self nurturing action oriented highly energetic tolerant of uncertainty a What Does It Take To Be An Entrepreneur b Turning Your Passions and Problems into Opportunities fills customers needs you have the skills and resources to start a business you can sell the product service at a price consumers are willing able to pay and still make a profit you can get your product service to customers before your window closes before competitors you can keep the business going entrepreneurial team a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to micropreneurs entrepreneurs willing to accept the risk of starting and managing the type of business that remains small lets them do the kind of work they c Entrepreneurial Teams develop make and market a new product d Micropreneurs and Home Based Businesses want to do and offers them a balanced lifestyle challenges of working at home 1 getting new customers 2 managing time 3 keeping work family tasks separate 4 abiding by city ordinances 5 managing risk e Web Based Businesses affiliate sends to its website affiliate marketing an internet based marketing strategy in which a business rewards individuals or other businesses affiliates for each visitor or customer the f Entrepreneurship within Firms intrapreneurs creative people who work as entrepreneurs within corporations g Encouraging Entrepreneurship What Gov t Can Do enterprise zones specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support also called empowerment zones or enterprise communities incubators centers that offer new businesses low cost offices with basic business services small business a business that is independently owned and operated is not dominant in its field of operation and meets certain standards of size set by the Small Business Administration in terms of employees or annual receipts value is based on what the business owns what it earns and what makes it unique business plan detailed written statement that describes the nature of the business the target market the advantages the business will have over competition II Getting Started In Small Business a Small vs Big Business b Importance of Small Businesses c Small Business Success and Failure III Learning About Small Business Operations a Learn From Others b Get Some Experience c Take Over a Successful Firm IV Managing a Small Business a Begin w Planning and the resources and qualifications of the owner s b Writing a Business Plan cover letter executive summary company background management team financial plan capital required marketing plan location analysis manufacturing plan appendix c Getting Money to Fund a Small Business CDFIs Community Development Financial Institutions P2P peer to peer lending venture capitalists may ask for hefty stake d The Small Business Administration SBA loans angel investors are price individuals who invest their own money in potentially hot new companies before they go public small business administration a U S gov t agency that advises and assists small businesses by providing management training and financial advice and guaranteed loans loans made by financial institution that gov t will repay if borrow stops payments Max ind loan guarantee is capped at 5 mill microloans from 100 50 000 to people such as single mothers and public housing tenants Export Express made to small business wishing to export Community Adjustment and Investment Program CAIP to create new sustainable jobs or to preserve existing jobs in eligible communities that have lost jobs due to changing trade patterns with Mexico and Canada following adoption of NAFTA Pollution control loans eligible small businesses for the financing of the planning design or installation of a pollution control facility 504 certified development company CDC loans for purchasing major fixed assets like land buildings needing revitalization Small Business Investment Company SBIC Program program through which private investment companies licensed by the Small Business Administration lend money to small businesses minimum of 5 million capital can borrow up to 2 from SBA for each 1 it had e Knowing Your Customers market people with unsatisfied wants and needs who have both the resources and the willingness to buy f Managing Employees g Keeping Records h Looking for Help Service Corps of Retired Executives SCORE ann SBA office with volunteers from industry trade associations and education who counsel small businesses at no cost except for expenses V Going Global Small Business Prospects financing is difficult to find would be exporters don t know how to get started and do not understand the cultural differences between markets the bureaucratic paperwork can threaten to bury a small business Exporting can absorb excess inventory soften downturns in the domestic market an extend product lives Small businesses can deal with individuals begin shipping faster provide wide variety of suppliers can give personal service and undivided attention