5: Entrepreneurship- Starting and Managing Your Own Business
- Page ID
- 2494
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)After reading this chapter, you should be able to answer these questions:
- Why do people become entrepreneurs, and what are the different types of entrepreneurs?
- What characteristics do successful entrepreneurs share?
- How do small businesses contribute to the U.S. economy?
- What are the first steps to take if you are starting your own business?
- Why does managing a small business present special challenges for the owner?
- What are the advantages and disadvantages facing owners of small businesses?
- How does the Small Business Administration help small businesses?
- What trends are shaping entrepreneurship and small-business ownership?
- 5.0: Introduction
- This page covers key aspects of entrepreneurship, including motivations, traits of successful entrepreneurs, and the role of small businesses in the economy. It details the initial steps and challenges of starting a business, with support from the Small Business Administration. The example of Natalie Tessler's transition from law to founding Spa Space illustrates the resilience required for success.
- 5.1: Entrepreneurship Today
- This page explores the journeys of young entrepreneurs, including the Aguerre brothers and Jack Bonneau, emphasizing the significance of small businesses in the U.S. It discusses various types of entrepreneurs, differentiating between entrepreneurs and small-business owners, with a focus on innovation and risk-taking.
- 5.2: Characteristics of Successful Entrepreneurs
- This page highlights the essential traits of successful entrepreneurs, including ambition, resilience, creativity, strong leadership, and effective communication. It emphasizes the importance of calculated risk-taking and strategic growth, as illustrated by Apollonia Poilâne's story of expanding her family's bakery. The notion of "working on the business" rather than just within it also underscores the need for innovation and a long-term vision for sustainable success.
- 5.3: Small Business- Driving America's Growth
- This page highlights the importance of small businesses in the U.S. economy, which contribute to around half of the economic output and employment. With estimates of 5 to over 22 million small businesses, entrepreneurship has risen since 2014, along with improved survival rates for new ventures. The Kauffman Foundation monitors entrepreneurial activities and their impact on economic growth, emphasizing startup activity, established firms, and growth entrepreneurship.
- 5.4: Ready, Set, Start Your Own Business
- This page provides guidance on starting a business, beginning with a self-assessment to identify suitable business types and ideas. It emphasizes creating a comprehensive business plan that includes marketing, management, and financial strategies and stresses the importance of being informed about small business trends.
- 5.5: Managing a Small Business
- This page discusses the challenges small business owners face, such as adapting to market changes and operational responsibilities. It highlights MailChimp's shift to focus on small businesses and the benefits of outsourcing to reduce stress. Attracting talent remains a challenge compared to larger firms, while international expansion can present new growth opportunities.
- 5.6: Small Business, Large Impact
- This page discusses the thriving state of small businesses amid economic uncertainty, highlighting advantages such as flexibility and enhanced personal customer service. Challenges like financing issues and compliance costs are noted alongside the stress and long hours faced by owners. Success strategies, including delegation, are exemplified by entrepreneur Richard Humphrey. Popular startup hubs mentioned include Tulsa, Tampa, and Austin.
- 5.7: The Small Business Administration
- This page outlines the Small Business Administration (SBA) and its support for small businesses through financial assistance, management advice, and resources for women, minorities, and veterans. It highlights services like loan guarantees, the New Markets Venture Capital Program, and management consulting from volunteers. The SBA is emphasized as a crucial resource for fostering small business growth and development.
- 5.8: Trends in Entrepreneurship and Small-Business Ownership
- This page highlights the evolution of entrepreneurship driven by demographic and technological changes, noting a rise in minority and women-owned businesses. Small businesses employed nearly 48% of the U.S. workforce in 2016, with women-owned firms outpacing national growth rates. Baby Boomers starting businesses counteract economic decline fears, and diverse growth among minorities and immigrants is recognized.