Chapter 06 – Entrepreneurship and Starting a Small Business
large companies, government, and nonprofits.
1. All organizations need:
Chapter 06 – Entrepreneurship and Starting a Small Business
6-22
lecture link 6-6
START-UPS FOR GROWN-UPS
Nearly half of the country’s self-employed workers are ba-
by boomers, and that figure is expected to climb as this gener-
ation retires. (See the complete lecture link on page 6.67 of
this manual.)
PPT 6-28
Small Businesses
(See complete PowerPoint slide notes on page 6.53.)
PPT 6-29
Small-Business Statistics
(See complete PowerPoint slide notes on page 6.54.)
critical thinking
exercise 6-2
WHAT IS SMALL?
The Small Business Administration defines small in differ-
ent ways for different industries. This exercise asks students to
visit the SBA website and find definitions for several indus-
tries. (See complete exercise on page 6.72 of this manual.)
Chapter 06 – Entrepreneurship and Starting a Small Business
d. The first jobs of about 80% of all Americans
C. IMPORTANCE OF SMALL BUSINESSES
small businesses fail each year.
cal to success.
a. The businesses with the lowest failure rates of-
ten require advanced training to start.
Chapter 06 – Entrepreneurship and Starting a Small Business
6-24
PPT 6-30
Advantages of Small over Big
Business
(See complete PowerPoint slide notes on page 6.54.)
lecture link 6-7
A NEW KING OF BEERS IN
ST. LOUIS
When Schlafly Beer was first started, no one thought it would
last because of the hometown favorite, Budweiser. Then InBev
took over A-B and doors were opened for the small brewer. (See
the complete lecture link on page 6.68 in this manual.)
PPT 6-31
Business Failures Are Lower Than
the Reports Because . . .
(See complete PowerPoint slide notes on page 6.54.)
lecture link 6-8
FAILURE IS THE BEST
MEDICINE
One commentator believes that failure is a blessing, recycling
talent for new ventures. (See the complete lecture link on page
6.68 in this manual.)
PPT 6-32
They Did What?
(See complete PowerPoint slide notes on page 6.55.)
TEXT FIGURE 6.3
Causes of Small-Business Failure
(Text page 160)
This text figure lists reasons for small-business failures, in-
cluding managerial incompetence and inadequate financial plan-
ning.
TEXT FIGURE 6.4
Situations for Small-Business
Success
(Text page 161)
This text figure shows some factors that increase the chances
of small-business success.
Chapter 06 – Entrepreneurship and Starting a Small Business
6-26
PPT 6-33
Learning about Small Business
(See complete PowerPoint slide notes on page 6.55.)
Chapter 06 – Entrepreneurship and Starting a Small Business
6-27
C. TAKE OVER A SUCCESSFUL FIRM
1. After many years in business, some small–
business owners feel stuck in their businesses.
2. The text describes a method of becoming suc-
cessful small-business managers.
and earning profits without working.
Chapter 06 – Entrepreneurship and Starting a Small Business
6-28
MAKING
ethical
decisions
(Text page 162)
PPT 6-34
Going Down with
the Ship
(See complete PowerPoint slide notes on page 6.55.)
Chapter 06 – Entrepreneurship and Starting a Small Business
6-29
A. According to the SBA, one of the major causes of
small-business failure is “POOR MANAGEMENT.”
1. This may involve poor planning, poor record
keeping, poor inventory control, poor promotion,
or poor employee relations.
6-30
PPT 6-35
Major Business Functions
(See complete PowerPoint slide notes on page 6.56.)
PPT 6-36
Business Plans
(See complete PowerPoint slide notes on page 6.56.)
box in text
OUTLINE OF A COMPREHEN-
SIVE BUSINESS PLAN
(Text pages 165–166)
This text box outlines a comprehensive business plan and
gives suggestions on what to include.
PPT 6-37
Writing a Business Plan
(See complete PowerPoint slide notes on page 6.56.)
critical thinking
exercise 6-3
WRITING A BUSINESS PLAN
This exercise analyzes the business plan for a small auto re-
pair shop. (See complete exercise on page 6.73 of this manual.)
6-32
PPT 6-38
A Family Affair
(See complete PowerPoint slide notes on page 6.57.)
PPT 6-39
Sources of Capital
(See complete PowerPoint slide notes on page 6.57.)
PPT 6-40
Funding Your Dream
(See complete PowerPoint slide notes on page 6.57.)
PPT 6-41
Community Development Financial
Institutions
(See complete PowerPoint slide notes on page 6.58.)
social
media in
business
(Text page 167)
PPT 6-42
Social Lending
(See complete PowerPoint slide notes on page 6.58.)
Chapter 06 – Entrepreneurship and Starting a Small Business
8. Smaller companies have a better chance of find-
ing funding through an angel investor.
E. THE SMALL BUSINESS ADMINISTRATION (SBA)
COMPANY PROGRAM (SBIC) is a program
through which private investment companies
licensed by the Small Business Administra-
tion lend money to small businesses.
b. An SBIC loans to or invests in small busi-
nesses that meet its criteria.
4. SMALL BUSINESS DEVELOPMENT CENTERS
Chapter 06 – Entrepreneurship and Starting a Small Business
6-34
PPT 6-43
The Small Business Administration
(See complete PowerPoint slide notes on page 6.58.)
TEXT FIGURE 6.5
Types of SBA Financial Assistance
(Text page 168)
This text figure shows the types of assistance the SBA can
offer to small businesses.
PPT 6-44
The Small Business Investment
Company
(See complete PowerPoint slide notes on page 6.59.)
PPT 6-45
Small Business Development
Centers
(See complete PowerPoint slide notes on page 6.59.)
Chapter 06 – Entrepreneurship and Starting a Small Business
7. One month later, funding was cut and no money
was able to be used by the program.
8. For most small businesses, obtaining money
from banks, venture capitalists, and government
and the willingness to buy.
2. The first step in filling these needs is to identify
the WANTS AND NEEDS of potential customers.
3. The goal of a businessperson is to FIND A
NEED AND FILL IT.
6-36
PPT 6-46
Community Advantage and Small
Loan Advantage Program
(See complete PowerPoint slide notes on page 6.59.)
PPT 6-47
Help Please!
(See complete PowerPoint slide notes on page 6.60.)
PPT 6-48
The Market
(See complete PowerPoint slide notes on page 6.60.)
lecture link 6-9
COMPETING AGAINST
WAL-MART
How one small hardware store found ways to compete
against the world’s largest retailer. (See the complete lecture
link on page 6.69 in this manual.)
critical thinking
exercise 6-4
COMPETING AGAINST
WAL-MART
An extension of Lecture Link 6-9 above, this exercise asks
students to consider how to help a small business compete
successfully against Wal-Mart. (See complete exercise on
page 6.75 of this manual.)
Chapter 06 – Entrepreneurship and Starting a Small Business
6-37
G. MANAGING EMPLOYEES
1. It is not easy to FIND, HIRE, TRAIN, AND KEEP
GOOD EMPLOYEES.
a. Small businesses offer less money, fewer
Chapter 06 – Entrepreneurship and Starting a Small Business
PPT 6-49
Managing Employees
(See complete PowerPoint slide notes on page 6.60.)
TIVES (SCORE) is an SBA office with volunteers
from industry, trade associations, and education
Chapter 06 – Entrepreneurship and Starting a Small Business
PPT 6-50
Accounting Assistance
(See complete PowerPoint slide notes on page 6.61.)
PPT 6-51
Legal Help
(See complete PowerPoint slide notes on page 6.61.)
PPT 6-52
Marketing Research
(See complete PowerPoint slide notes on page 6.61.)
PPT 6-53
Other Forms of Help
(See complete PowerPoint slide notes on page 6.62.)
lecture link 6-10
MAKING ENTREPRENEURSHIP
A COLLEGE MAJOR
There are only 12 successful university entrepreneurial
programs in the United States today. (See the complete lecture
link on page 6.47 of this manual.)