Entrepreneurial and Small Business Development

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					Entrepreneurial and Small
 Business Development

• Local economies driven by small business
• Creates jobs
• Significant source of employment
Small Businesses

• Employers
• Tax Revenue Generators
• Economic Supporters
• Property Owners & Renters
• Provides of Economic Stability
Small Business Development

• What is a small business?
• Characteristics of a small business:
  – Innovation
  – Ties to the community
  – Flexibility
  – Little capital
Entrepreneurial Development

• Who are entrepreneurs?
  – Risk takers
  – Leaders
  – Aggressive work ethic
  – Creative
  – Motivated in spite of setbacks
                                The Startup Process

                                                                                                     Small business management
               Entrepreneurship involves
                                                                                                    focuses on running a business
                  the startup process.
                                                                                                      over a long period of time.

SOURCES: Based on, with additions to, Carol Moore, “Understanding Entrepreneurial Behavior: A Definition and Model,” in Academy of Management Best Paper
Proceedings, edited by J. A. Pearce II and R. B. Robinson, Jr., 46th Annual Meeting of the Academy of Management, Chicago, 1989, 66–70. See also William Bygrave,
“The Entrepreneurial Paradigm (I): A Philosophical Look at Its Research Methodologies,” Entrepreneurship: Theory and Practice, Fall 1989, 7–25.

                                                    Source: Hatten, Small Business
                                                    Management, 4th Edition                                                                                         6
Entrepreneurial Development

• Whom to encourage
  – Entrepreneurs fail
  – Weed them out
• Obstacles to small business development
Entrepreneurial & Small Business
Development Support
• Technical Assistance
• Providing Business Space
• Financial Assistance
Stages of Business Development

• Creating the Business Idea
• Formalizing the Business Plan
• Opening the Business
• Expansion and Growth
Small Business Incubators

• Low Rent
• Shared Support Services
• Network Opportunities
Small Business Financial
• Financial Document
• Role of the Economic Development Practitioner
  –   Deciding What to Provide
  –   The Territory
  –   Problems
  –   Local Business History
  –   Business Climate
  –   How to Market
  –   When to Quit
Business Plan Development

• Financial
• Development
• Sales tools
• Know your product
Five Points of Business Plan

• Express
• Explain
• Project
• Describe
• Define
Elements of Business Plan
•   Cover Sheet
•   Executive Summary
•   Table of Contents
•   Business Description
•   Marketing Strategy
•   Placement
•   Profiles of the Management Team
•   Description of Staff Positions
•   Overall Schedule
Financial Data
•   Estimated Sales
•   Costs & Expenses Forecast
•   Cost of Sales/manufacturing
•   Selling, General, & Administrative Expenses
•   Capital
•   Ratio Analysis
•   Break-Even Analysis
• Balance Sheet
• Income Statement
• Cash Flow
• Supporting Documentation
  – Resumes
  – Personal Financial Information
  – Leases
  – Other documents relevant

• Small Business backbone of the
• Important to keep economy going

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