1. Chapter 6
Entrepreneurship and Small Business
Management

2. What is an entrepreneur?
• Someone who takes a risk in starting a
business to earn a profit.
What do you need to be an entrepreneur?
– Desire to be your own boss
– An initial plan
– Ability to come up with innovative ideas

3. Entrepreneurship
• The process of starting, organizing, managing,
and assuming the responsibility for a business.
Example Entrepreneur:

4. The Risk
In your journal –
1. Write down the type of business you would
like to start.
2. Write down the first 10 things you would do
when starting that business.

5. Business Plan
A written description of the business idea and
how it will be carried out, including all major
business activities.

6. Business Plan

7. What does it take?
Persistent
Inquisitive
Energetic
Goal oriented
Independent
Self-confident
Creative
Reliable
Competitive
• Problem Solving Skills
• Tolerance
• Strong integrity
• Personal initiative
• Ability to secure resources
• Capability to learn from
failure
• Willingness to work hard

8. THE ECONOMY
• How do small businesses help the economy?
Venture Capital – money provided by large
investors to finance new products and new
businesses that have a good chance of to be
very profitable.

9. THE ECONOMY
• How do small businesses help the economy?
Venture Capital – money provided by large
investors to finance new products and new
businesses that have a good chance of to be
very profitable.

10. Small Business
• An independent business with fewer than 500
employees.
• 99.7% of roughly 24 million US businesses are
small businesses.
• Employ nearly 50% of US workers.

11. Small Business Problems
• Reasons for Failure:
– Not keeping adequate records
– Not having enough start up money
– Lack of management experience
– Lack of experience with the type of business
– Not controlling operating expenses
– Poor location

12. Small Business Administration
• Government agency that helps small business
owners develop business plans and obtain
financing and other support for their
companies.
• SBA.gov