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The Nature of Entrepreneurship

and Small Business


Entrepreneurship : the process of creating and
managing a business to achieve desired
objectives

Small business : any independently owned and


operated business that is not dominant in its
competitive area and does not employ more than
500 people

The Role of Small Business in the


American Economy
Job Creation
Innovation

Industries That Attract Small Business


Retailing and Wholesaling
Services

Manufacturing
High Technology

Advantages of Small-Business
Ownership
Independence
Costs

Flexibility
Focus
Reputation

Disadvantages of Small-Business
Ownership
High Stress Level
High Failure Rate :
Undercapitalization
Managerial Inexperience or Incompetence

Inability to Cope with Growth

Starting a Small Business


The Business Plan
Forms of Business Ownership

Financial Resources :
Equity Financing
Debt Financing

The Future for Small Business


Demographic Trends
Technological and Economic Trends

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