Difference Between Entrepreneur and Manager - PowerPoint

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					SMALL BUSINESS
MANAGEMENT

           Chapter 2
   The Small Business Decision
The Small Business Decision

   Personal Evaluation
Advantages of Small Business
Ownership
   More personal contacts with people
   Independence
   Skill Development
   Potential Financial Rewards
   Challenge
   Enjoyment
Disadvantages of Small
Business Ownership
   Risk
   Stress
   Need for Many Abilities
   Limited Financial Rewards
   People Conflicts
   Time Demands
Demographic Characteristics
of Entrepreneurs
   Parents owned business
   Foreign parents
   High school degree or less
   College or more
   Age 31 and under
   Age 40 or more
Personality Characteristics Required
by Successful Entrepreneurs

   Achievement Orientation
   Risk Taking
   Independence, Self Confidence, Self
    Assurance
   Innovativeness
   Strong Verbal and Numerical Skills
   Selling Skills
Personality Characteristics Required
by Successful Entrepreneurs

   Selling Skills
   Problem Solving Abilities
   Strategic Planning
   Perseverance
The Small Business Decision

   Organizational Evaluation
Small Business Successes

   Alertness to Change
   Ability to Attract and Hold Competent
    Employees
   Staying Close to the Consumer
Small Business Successes

   Thoroughness with Operating Details
   Ability to Obtain Needed Capital
   Effective Handling of Laws, Rules, and
    Regulations
Small Business Successes

   Environments Conducive to Small
    Business Success
       Personal Attention to Daily Operation
       Owner Contact with Employees
       Small or Local Demand
Small Business Successes

    Industries that Require Flexibility
        high growth rates, erratic demands,
         perishable products
    More Labor and Less Capital Intensive
    Considerable Government Encouragement
Small Business Failures

   Bankruptcies
Entrepreneurialship and Small
Business Management

   Entrepreneurial Skills
       Characteristics
            creativity, innovativeness, independence, risk-
             taking, idea-oriented
       Situations
            generating ideas and solutions to problems,
             starting a new business, expanding or opening
             new products, reaching performance
             objectives, maintaining control of operations
         Entrepreneurialship and Small
         Business Management

   Managerial Skills
       characteristics
          develops strategy and goal setting, prefers to know
           outcomes of actions or activities, team player, works
           through others, skills in finance, marketing, personnel,
           operations
          situations

          generating ideas and solutions to problems, starting a
           new business, expanding or opening new products,
           reaching performance objectives, maintaining control
           of operations
Concept Checks

   1. What are the major causes of
    business failure?
   2. What are the characteristics of a
    successful business?
   3. List the advantages of owning a
    small business.
    Framemakers Part 1
   What aspects of Robert and Teresa’s
    background will contribute to their success
    if they decide to go ahead with picture
    framing store?
   What further areas should Robert and
    Teresa explore before making this
    decision?
Concept Checks

   4. List the disadvantages of owning a
    small business.
   5. What are the characteristics of
    successful small business owners?
   6. What is the difference between an
    entrepreneur and a manager?
Concept Checks

				
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