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Chapter 6: PowerPoint 6.18 (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
Chapter 6: FosteringEntreprenership
!A"A#$"#: A C%!PETE"C&
'AE APP*%AC+11th Edition
Prepared by
Argie 'tlerTe,as A-! ni/ersit0
on +ellriegel
ohn 2. lo3m4 r.
san E. a35son
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Chapter 6: PowerPoint 6.1
Fostering E
n t r e p r e n e r s h i p
earning #oals
1. E,plain the natre of entreprenership and
the impa3t the en/ironment has on it
7. es3ribe the 3ompeten3ies that 3ontribte to
entrepreners s33ess
9. %tline the planning essentials for potentialentrepreners
. es3ribe the basi3 essentials of 3orporate
entreprenership
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Chapter 6: PowerPoint 6.7
Fostering E
n t r e p r e n e r s h i p
2hat is
Entreprenership;
Common Components of Entreprenership
Entreprenership: $ts !eaning
and 3ope
The 3reation of
an inno/ati/eorgani<ation for
the prpose of
e3onomi3 gain
or growth
nder
3onditions of
ris5 or
n3ertaint0
omething
new
omething
better
"ew deli/er0
s0stem ordistribtion
3hannel
Entering an
nderser/ed ornew mar5et
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Chapter 6: PowerPoint 6.9
Fostering E
n t r e p r e n e r s h i p
+ow oes the En/ironment Affe3t
Entreprenership;
%pen and free mar5ets
ereglation
Politi3al 3limate
E3onomi3 and te3hnologi3al 3onditions
pport s0stem
A/ailabilit0 of 3apital and loans
Ta, rates and poli3ies
pport ser/i3es: 'A4 'Cs4 /entre 3apital
firms4 3hambers of 3ommer3e4 et3.
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Chapter 6: PowerPoint 6.
Fostering E
n t r e p r e n e r s h i p
+ow oes the En/ironment
Affe3t Entreprenership;
'siness in3bation: a bsiness spport pro3ess that
a33elerates the s33essfl de/elopment of start=p
and fledging 3ompanies b0 pro/iding entrepreners
with an arra0 of targeted resor3es and ser/i3es
Common featres in bsiness in3bators !anagement and te3hni3al gidan3e
"etwor5ing
*ental spa3e>fle,ible leases hared bsiness ser/i3es and e?ipment
Ps03hologi3al and moral spport
Assistan3e in obtaining finan3ing
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Chapter 6: PowerPoint 6.@
Fostering E
n t r e p r e n e r s h i p
mall bsiness one that is independentl0 owned
and operated and whi3h is not dominant in its
field of operation
mall bsiness firm ma0 be entreprenerial4
depending pon its initiati/es
'A defines si<e b0 nmber of emplo0ees or
dollars of sales4 depending pon indstr0
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Chapter 6: PowerPoint 6.6
Fostering E
n t r e p r e n e r s h i p
Famil0 bsiness: one owned and managed
mostl0 b0 people who are related b0 bloodand>or marriage
!a0 or ma0 not be entreprenerial
9B of famil0 bsinesses sr/i/e to the se3ond
generation4 17 to the third generation4 and
9 to the forth and be0ond
Are Famil0 'sinesses
Entreprenerial Firms;
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Chapter 6: PowerPoint 6.D (Figre 6.1)
Fostering E
n t r e p r e n e r s h i p
elf management
"eed for
a3hie/ementesire for
independen3eelf 3onfiden3eelf sa3rifi3e
33essflentrepreners
Planning
and
administration
!lti3ltral
Teamwor5 trategi3a3tion
Commni3ation
pe3iali<ed nowledge
aries b0 t0pe of
bsiness lan3hed
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Chapter 6: PowerPoint 6.8
Fostering E
n t r e p r e n e r s h i p
$mportan3e of elf=Confiden3e
and %ptimism
think its’ important to see this clear path and not be
discouraged when people throw stones at it, becausethey will. You will have to be willing to see the path,
believe in it, and have the stamina and persistence to
stick with it. You have to stand your ground an
have confidence.
Denise Divine
Founder of Devine Foods
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Chapter 6: PowerPoint 6.G
Fostering E
n t r e p r e n e r s h i p
eli/ering prod3ts and
ser/i3es that are per3ei/ed as
high ?alit0 and that are seen
b0 its 3stomers or 3lients
as adding /ale
e/eloping or impro/ing
prod3ts and ser/i3es on a
reglar basis
#enerating new 3stomers
or 3lients that e,pand
re/ene
Fo3sing mar5eting
e,penditres and
de/eloping 3stomer=
oriented emplo0ees
!aintaining finan3ial
3ontrol of the firm
Establishing a strong
3ommitment to ethi3al
pra3ti3es
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Chapter 6: PowerPoint 6.1B
Fostering E
n t r e p r e n e r s h i p
Planning and Administration
Competency !napshot
"o your homework prior to starting the business.
#ake sure the market truly needs your service or product.
$inally, make sure you can differentiate your service or product from the competition in a way that is beneficial to the
customer. !tay focused on your goals, but be fle%ible enough
to modify your business plan to match what the market is truly
asking for. As evidenced of why this is important &' percent
of my firm’s revenue today is from services we did not offer in my original business plan.
aniel riesenga
Fonder and CE%
riesenga - Asso3iates
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Chapter 6: PowerPoint 6.11
Fostering E
n t r e p r e n e r s h i p
Commni3ation
Competen30
33essfl entrepreners s3ore higher than87 per3ent of the poplation on their abilit0
to e,press spport and en3oragement
33essfl entrepreners s33eed b0 helpingother peopletheir emplo0ees4 partners4
in/estors4 sppliersbe3ome s33essfl
themsel/es
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Chapter 6: PowerPoint 6.17
Fostering E
n t r e p r e n e r s h i p
Planning Essentials for Entrepreners
es3ribes the
basi3 idea that is
the fondationfor the start=p
and otlines how
that idea 3an be
trned into
realit0
(!omeone once said If you don’t know
where you’re going, any road will take you
there. You need to know e%actly where you want to go, what route you’re going to
take, when you will arrive and what you
are to do upon arrival)no guesswork at
all. You need to determine whether there
is a demand for your service and, if so,
what constitutes your market.*
"on "oggett
#anagement Counselor
Counselors to America’s !mall +usiness
'siness Plan napshot
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Chapter 6: PowerPoint 6.19 (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components
(3ontined)
$. E,e3ti/e mmar0
2hat4 how4 wh04 where4 and when mst be
smmari<ed
$$. 'siness es3ription Component
The name of the bsiness
The potential and ni?eness of the new /entre
p
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Chapter 6: PowerPoint 6.1 (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
$$$. !ar5eting Component
Con/in3e in/estors that sales proHe3tionsand 3ompetition 3an be met
$dentif0 target mar5et4 mar5et position4
mar5et share4 pri3ing strateg0
E/alate all 3ompetition and state wh0 andhow 0o will be better than 0or 3ompetitors
$dentif0 ad/ertising plans with 3ost estimates
p
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Chapter 6: PowerPoint 6.1@ (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
$. o3ation Component
es3ribe the ad/antages of 0or lo3ation(<oning4 ta, laws4 wage rates)I list the
prod3tion needs in terms of fa3ilities (plant4
storage4 offi3e spa3e) and e?ipment
(ma3hiner04 frnishings4 spplies)
$ndi3ate pro,imit0 to 0or sppliers
p
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Chapter 6: PowerPoint 6.16 (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
. !anagement Component
ppl0 rJsmJs of all 5e0 people in themanagement of 0or /entre
es3ribe the legal str3tre of 0or /entre (sole
proprietorship4 partnership4 or 3orporation)
#i/e information on how and how m3h e/er0one
is to be 3ompensated
p
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Chapter 6: PowerPoint 6.1D (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
$. Finan3ial Component
es3ribe the needed sor3es for 0or
fnds and the ses 0o intend for the
mone0
e/elop an estimated bdget4 3ash flow
statement4 and profit and loss statement
Create stages of finan3ing for prposes of
allowing e/alation b0 in/estors at /arios
points
p
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Chapter 6: PowerPoint 6.18 (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
$$. Potential Criti3al=*is5s Component
An0 potentiall0 nfa/orable indstr0=widetrends4 s3h as pri3e 3tting b0 3ompetitors
esign or manfa3tring 3osts in e,3ess of
estimates
ales proHe3tions not a3hie/ed
Prod3t de/elopment s3hedle not met
Pro/ide some alternati/e 3orses of a3tion
p
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Chapter 6: PowerPoint 6.1G (Adapted from Table 6.1)
Fostering E
n t r e p r e n e r s h i p
'siness Plan: Essential
Components (3ontd)
$$$. !ilestone 3hedle Component e/elop a timetable or 3hart to
demonstrate when ea3h phase of the
/entre is to be 3ompleted
$K. Appendi, or 'ibliograph0
p
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Chapter 6: PowerPoint 6.7B
Fostering E
n t r e p r e n e r s h i p
%ther
options
Fran3hise
strateg0
'0 trateg0 tart=p
strateg0
+ow to tart the 'siness
p
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Chapter 6: PowerPoint 6.71
Fostering E
n t r e p r e n e r s h i p
Prin3iple of Affordable oss
The 3ons3ios determination of the amont
of resor3es (mone04 time4 and effort)
entrepreners are willing to 3ommit to anidea4 whi3h4 in trn4 inflen3es the 3hoi3e of
strategies and methods needed to generate
earl0 re/enes
Addresses tension between e,3essi/e anal0sis
and ?i35 a3tion
p
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Chapter 6: PowerPoint 6.77
Fostering E n t r e p r e n e r s h i p
Finding Fnds
Entreprener4
famil04
friends
entre 3apitalist 'siness angel
'siness
in3bators4go/ernment
agen3ies ('A)
Pri/ate se3tor
finan3ialinstittions
p
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Chapter 6: PowerPoint 6.79 (Adapted from Figre 6.7)
Fostering E n t r e p r e n e r s h i p
Fa3tors That Fa/or a #lobal tart=p
#lobaltart=p
Foreign
Finan3ing
is 'etter+man
*esor3es Are
ispersed Among
Contries
TargetCstomers
*e?ire an
$nternational
Presen3e
Foreign
Competition 2ill
Li35l0 Enter the
!ar5et
omesti3!ar5et is Too
mall to pport
E,penses
omesti3
$nertia Cold
$mpede ater
Efforts to
$nternationali<e
p
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Chapter 6: PowerPoint 6.7 (Figre 6.9)
Fostering E n t r e p r e n e r s h i p
*e3ommendations to Ensre a
33essfl Famil0 'siness
Commitment to
*esol/ing Confli3ts
Li35l0
Clear ob
*esponsibilities
And Athorit0
*elationships
E,pli3it +iring Criteria
For Famil0 !embers
Plan for !anagement
Transitions
se of %tside
Ad/isors>ire3tors
p
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Chapter 6: PowerPoint 6.7@
Fostering E n t r e p r e n e r s h i p
Corporate Entreprenership
2hat is Corporate Entreprenership;
The de/elopment4 promotion4 and implementation
of inno/ation initiati/es in established firms for the
prpose of generating growth and4 ths4 profits
nder ris50 or n3ertain 3onditions
Essential for the sr/i/al of firms
2ho $s a Corporate Entreprener;
omeone in an organi<ation who 3hampions
trning new ideas into profitable realities
p
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Chapter 6: PowerPoint 6.76
Fostering E n t r e p r e n e r s h i
+ow is Corporate Entreprenership
Fostered;
$n3enti/es
and rewards
for ris5 ta5ing
Commitment from senior management
Fle,ible organi<ation
design
Atonom0 of the
/entre team
Appropriatel0
designed 3ontrols0stem
Competent and
talented people whoe,hibit entreprenerial
beha/iors and attitdes