compare the Entrepreneurship between Saudi Arabian and United States
Learning Objectives
LO1 Describe why people become entrepreneurs and what it takes, personally.
LO2 Summarize how to assess opportunities to start a new company.
LO3 Identify common causes of success and failure.
LO4 Discuss common management challenges.
LO5 Explain how to increase your chances of success, including good business planning.
LO6 Describe how managers of large companies can foster entrepreneurship.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
Entrepreneurship (1 of 3)
The pursuit of lucrative opportunities by enterprising individuals.
Discovering, evaluating, and capitalizing on opportunities to create new and future goods and services.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Entrepreneurship (2 of 3)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Small business
A business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by innovative practices.
Entrepreneurial venture
A new business having growth and high profitability as primary objectives.
Some Myths About Entrepreneurship (1 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Entrepreneurs are born, not made.
Anyone can start a business.
Entrepreneurs are gamblers.
Entrepreneurs want the whole show to themselves.
Entrepreneurs are their own bosses and completely independent.
Entrepreneurs work longer and harder than managers in big companies.
Some Myths About Entrepreneurship (2 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Entrepreneurs experience a great deal of stress and pay a high price.
If an entrepreneur is talented, success will happen in a year or two.
Entrepreneurs are lone wolves and cannot work with others.
Unless you attained 600+ on your SATs or GMATs, you’ll never be a successful entrepreneur.
Entrepreneurship (3 of 3)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Entrepreneur
Individuals who establish a new organization without corporate sponsorship.
Intrapreneurs
New-venture creators working inside big companies.
Exhibit 7.2 Mega-Entrepreneurs Who Started in Their 20s
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Exhibit 7.3 Who is The Entrepreneur?
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
The Idea
A great product, a viable market, and good timing are essential ingredients in any recipe for success.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Opportunities Entrepreneurs Should Consider
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
7 – ‹#›
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
12
Technological discoveries
Demographic changes
Lifestyle and taste changes
Economic dislocations
Calamities
Government initiatives and rule changes
What Business Should You Start?
Franchising
An entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location).
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Question (1 of 2)
Which Internet model charges fees to advertise
on a site?
Transaction fee model
Subscription model
Advertising support model
Affiliate model
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
The correct answer is c – advertising support model. See next slide
14
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
The Internet (1 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Transaction fee model
Charging fees for goods and services.
Subscription model
Charging fees for site visits.
Advertising support model
Charging fees to advertise on a site.
The Internet (2 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Intermediary model
Charging fees to bring buyers and sellers together.
Affiliate model
Charging fees to direct site visitors to other companies’ sites.
Social Entrepreneurship
Leveraging resources to address social problems.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Exhibit 7.4 Examples of Social Enterprises
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Social Enterprise Empowering Latina Entrepreneurs
Nely Galan founded Adelante, a movement “designed to empower Latinas in the U.S. economically through inspiration, motivation, training, and resources on entrepreneurship.”
Galan feels that by helping Latinas become more financially successful, she will have a positive impact on their communities and families.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
19
Social Enterprise Questions Empowering Latina Entrepreneurs
What factors are motivating Galan to help Latinas become successful entrepreneurs?
Why do you think Coca-Cola, a consumer products company, is collaborating with Galan to empower women entrepreneurs?
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
20
What Does it Take, Personally?
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
21
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
Commitment and determination
Leadership
Opportunity obsession
Tolerance of risk, ambiguity, and uncertainty
Creativity, self-reliance, and ability to adapt
Motivation to excel
Exhibit 7.5 Entrepreneurial Strategy Matrix
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Success and Failure (1 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
23
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
Anticipate risk.
Consider the role of the economic environment.
Utilize business incubators.
Realize there are common management challenges.
Going public with an initial public offering (IPO).
Question (2 of 2)
A _____________ is a protected environment for small businesses.
Business incubator
Small business office
SBA
Service incubator
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
The correct answer is a – business incubator. See next slide.
24
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
Success and Failure (2 of 2)
Business incubators
Protected environments for new, small businesses.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Common Management Challenges
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
26
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
You might not enjoy it.
Survival is difficult.
Growth creates new challenges.
It’s hard to delegate.
Misuse of funds.
Poor controls.
Mortality and succession.
Initial public offering (IPO)
Sale to the public, for the first time, of federally registered and underwritten shares of stock in the company.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Increasing Your Chances of Success
Opportunity analysis
A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Exhibit 7.6 Opportunity Analysis
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Planning
Business plan
A formal planning step that focuses on the entire venture and describes all the elements involved in starting it.
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
7 – ‹#›
Outline of a Business Plan (1 of 2)
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
