Entrepreneur summary: What is a small business? It is independently owned and operated It is closely controlled by owners or managers who also contribute most, if not all, of the operating capital The principal decision-making functions rest with the owners or managers It employs fewer than twenty employees if in the non-manufacturing sector It employs fewer than a hundred employees if in the manufacturing sector Common motivations for entrepreneurs? Intrinsic satisfaction (a way of expressing yourself) Recognition Independence Family factors Lifestyle Challenge Common characteristics of entrepreneurs An entrepreneur is a person who has decided to take control of his future and become self-employed Entrepreneurs are careful about money. They always know how much money they have. Entrepreneurs are competitive by nature. Many were active in sports and other competitions in high school and college. Entrepreneurs believe in the old adage, "the early bird gets the worm." They sleep and eat enough to maintain their energy levels but they don't usually linger over non-productive tasks. Entrepreneurs are risk-takers who trust their hunches and act on them. Entrepreneurs have a "head for business." They are always thinking of new ideas and new ways to make money or increase their business. Entrepreneurs do set aside time for leisure activities and family. Their principal form of relaxation is their work, but they do realize the importance of downtime and spend time with their family. Most of all, they never give up and never quit striving for success
The challenge? Many small businesses fail! (around 50% in the first year alone) Don’t despair though, almost every successful business person and entrepreneur failed numerous times before they came to success. They key is NEVER TO GIVE UP! Reasons for failure: Poor financial management Management incompetence and inexperience Staffing problems Lack of appropriate administrative systems No defined target market Can't sell Don't market Can't communicate effectively internally