Slide 1 - Louisiana Tech University by linzhengnd

VIEWS: 8 PAGES: 24

									LOUISIANA TECH UNIVERSITY
Technology Business Development Center (TBDC)




                                                   Determining
                                                Entrepreneurial
                                                      Potential
           LOUISIANA TECH UNIVERSITY
           Technology Business Development Center (TBDC)




                                                                  Some Definitions of
                                                                    an Entrepreneur
someone who seeks to capitalize on new and profitable
endeavors or business; usually with considerable initiative and risk
. . . Wikipedia


one who organizes, manages, and assumes the risks of a business
or enterprise . . . Merriam-Webster Online


an individual engaged in the process of starting and growing
one's own business or idea . . . The Public Forum Institute


those who perceive and pursue opportunities that enhance the
regional and global economy . . . LA Tech University Center for
Entrepreneurship and Information Technology (CEnIT)
           LOUISIANA TECH UNIVERSITY
           Technology Business Development Center (TBDC)




                                                            More Descriptions
                                                             of Entrepreneurs
6 – 7% of U.S. population is in the process of starting a
business at any given time
53% of new small businesses begin in the home with less
than $10,000
entrepreneurial activity for men has declined
activity for women remained the same
immigrants outpace native-born Americans
older individuals (55-64) increasingly engaged in new
business starts
           LOUISIANA TECH UNIVERSITY
           Technology Business Development Center (TBDC)




                                                                     What is
                                                           Entrepreneurship?

http://abese.org/videos/FinalLarge.wmv
         LOUISIANA TECH UNIVERSITY
         Technology Business Development Center (TBDC)




                                                                  Indicators of
                                                               Entrepreneurial
Persistence                 Desire for immediate feedback             Aptitude
Inquisitiveness             Strong drive to achieve
High energy level           Goal oriented behavior
Independent                 Demanding
Self-confident              Calculated risk taker
Creative                    Innovative
Vision                      Commitment
Problem solving skills      Tolerance for ambiguity
Strong integrity            Highly reliable
Personal initiative         Ability to consolidate resources
Competitive                 Change agent
Tolerance for failure       Desire to work hard
Strong management           Organizational skills
Luck
           LOUISIANA TECH UNIVERSITY
           Technology Business Development Center (TBDC)




                                                                       More
                                                           Characteristics of
Able to do many things at once                                   Successful
Likes a challenge                                             Entrepreneurs
Likes to work for self and be in control

Not easily discouraged

Good health, lots of energy and handles stress well

Positive thinker, does not dwell on setbacks

Focused on success rather than chances of failure

Often has close friend or relative who owns a business

Recent immigrant to N America (within two generations)
         LOUISIANA TECH UNIVERSITY
         Technology Business Development Center (TBDC)




                                                          Common Reasons
                                                         for Business Startup
Seize an opportunity (17%)
Personal accomplishment (13%)
Dream to run own business (9%)
Use experience or skills (9%)
Be own boss (8%)
Economic necessity to make living (7%)
Had previous experience (7%)
Supplement income from other employment (5%)
Create job for self (4%)
Frustrated in previous job (3%)
Make lots of money (3%)
Other reasons (15%)
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                               Importance of
                                                             Entrepreneurship
•about 50% of private sector employment

•youngest and smallest firms are the biggest job producers

•firms with fewer than 20 employees generate majority of
net new jobs in the U.S

•fast-growth companies responsible for about two-thirds of
new jobs created between 1993 and 1996

•since 1980, Fortune 500 companies have lost five million
jobs, while the United States as a whole has added 34
million new jobs


•JOBS
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                              Importance of
                                                            Entrepreneurship
•Small businesses developed significant number of this
nation’s most important inventions and innovations

•Entrepreneurs responsible for 67 percent of inventions
and 95 percent of radical innovations since World War II

•Small firms produce more highly cited patents than large
firms

•Small patenting firms produce 13-14 times more patents
per employee

•Small companies represent 65% of new companies in the
list of most highly innovative companies in 2002


•INNOVATION
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                            Importance of
                                                          Entrepreneurship
•American small business is the world’s third largest
economy, trailing only the U.S. as a whole and Japan

•mall businesses generate about half of nonfarm private
gross domestic product

•Economic models show that firm births are positively
correlated with innovation and regional growth
(employment, wage and productivity)

•In 2004, the median net worth for self employed
households was $335,600 compared to $67,200 for those
that worked for others


•WEALTH CREATION
           LOUISIANA TECH UNIVERSITY
           Technology Business Development Center (TBDC)




                                                                 Sobering Statistics

About 50% of small businesses fail/close within the first five
years

Of the 50% closing, only about one-third closed under
circumstances that owners considered unsuccessful

Within a 10 year period, about 64.2% of businesses
fail/close, but only 5.3% actually filed for bankruptcy during
a decade

NFIB estimates that over the lifetime of a business, 39% are
profitable, 30% break even, and 30% lose money, with 1%
falling in the "unable to determine" category
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Striving to Survive

More likely to close:
           Relatively young owners
           Services or retail trade
           Insufficient start-up capital
           Being in an urban/suburban area

Greater chance of survival:
          Starting with some resources and size
          Having employees
          Sufficient starting capital
          Educated owner
          Previously owning another business
          Having multiple owners
          Home-based at startup

Being an employer main factor leading to survival
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                                Common
                                                              Reasons for
Lack of experience
                                                          Business Failure
Insufficient capital
Poor location
Poor inventory management
Over-investment fixed assets
Poor credit arrangements
Personal use of business funds
Unexpected growth
Competition
Low sales
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Defining the
                                                          Opportunity
Improves understanding of factors affecting sales
potential

Provides tools for basic assessment of business
feasibility
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Bringing the Right
                                                           People on Board
Provides understanding for development of initial
management team

Introduces framework for defining and prioritizing
staffing needs
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Calculating the
                                                          Financial Need
Provides understanding of basic budgeting

Allows rough estimate of funding needs
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Choosing an
                                                           Ownership
Provides understanding of factors influencing choice         Structure
of legal entity

Helps with deciding on best form of business
organization
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Learning from
                                                           Experienced
Provides understanding of how to prepare for              Entrepreneurs
business ownership

Helps avoid common mistakes
      LOUISIANA TECH UNIVERSITY
      Technology Business Development Center (TBDC)




                                                          Prepare for
                           Biz Opp     People Finance
                                                             Success
Lack experience                            X

Insufficient capital                       x          X

Poor location                   X          x

Poor inventory mgt                         x          X

Over investment                            x          X

Poor credit arrangement                    x          X

Personal use of funds                      x          X

Unexpected growth               X          x          X

Competition                     X          x

Low sales                       X          x
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                                      Assistance and
                                                                     Support for New
• Technology Business Development Center (TBDC)
                                                                             Ventures
Kathy Wyatt, Director: kwyatt@latech.edu

• Center for Entrepreneurship & Information Technology (CEnIT)
Jon Pratt, Director: jpratt@latech.edu

• Association of Business, Engineering, & Science Entrepreneurs
 Dr. Mark Barker and Mrs. Debbie Inman, Advisors: abese@latech.edu

• LSU-S Small Business Development Center
Cooper Cochran, Director: ccochran@lsbdc.org

•   LA SBDC State Office: https://www.lsbdc.org
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                           Reports & Studies
                                                                         on
Kauffman Index of Entrepreneurial Activity, 1996-2005
                                                           Entrepreneurship
http://www.kauffman.org/items.cfm?itemID=704

National Dialogue on Entrepreneurship
http://www.publicforuminstitute.org/nde/entre/index.htm

SBA Office of Advocacy
http://www.sba.gov/advo/index.html

National Federation of Independent Business
http://www.nfib.com/

Kauffman eVenturing
http://www.eventuring.com/eShip/appmanager/eVenturing/eVenturingDesktop
          LOUISIANA TECH UNIVERSITY
          Technology Business Development Center (TBDC)




                                                          Next Steps

Decide whether you are committed enough to
continue

Determine how you want to conclude/exit

Develop brief, but clear and compelling, explanation
of your concept

Start building the team needed to succeed

Set some goals and timelines

Get the plan in writing
     LOUISIANA TECH UNIVERSITY
     Technology Business Development Center (TBDC)




                                                     Next Steps
The beginning is the most important
part of the work.
                  Plato

Start by doing what's necessary; then
do what's possible; and suddenly you
are doing the impossible.
                 St. Francis of Assisi
         LOUISIANA TECH UNIVERSITY
         Technology Business Development Center (TBDC)




                                                         LA Tech TBDC

Louisiana Tech University
Technology Business Development Center
P.O. Box 3145, Ruston, LA 71272
Phone: (318) 257-3537
Fax: (318) 257-4442
Email: tbdc@latech.edu
Contact: Kathy Wyatt, Director

								
To top