Entrepreneurship & Small Business Ownership

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Entrepreneurship Small Business Ownership

• Is It Right for You?
• State Federal Resources
• How New Jersey Can Help

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North Jersey Partners

• This Webinar is part of the North Jersey
  Partners Entrepreneurship Initiative to support
  and provide information about small business
  ownership.
• In addition, North Jersey Partners has produced
  a series of three Resource Guides entitled,
  Entrepreneurship Seize the Opportunity along
  with a fact sheet that lists the web sites for
  federal, state, and other entities that support
  and guide entrepreneurs.

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Facilitators

• Judith A. Sheft
• Associate Vice President of Technology
  Development
• New Jersey Institute of Technology
• BIO at http//www.njit.edu/news/experts/sheft.php
• Jeffery Dunn
• Executive Director
• The B.O.S.S. Business One Stop Service
• BIO at http//www.thebusinessonestopservice.com

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What is Entrepreneurship?

• The act of organizing, managing, operating, and
  assuming the risks of owning a business or an
  enterprise.
• Source Websters Online Dictionary

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Profile of an Entrepreneur

• Contrary to popularly held assumptions, the
  highest rate of entrepreneurial activity belongs
  to the 5564 age group over the past decade. The
  2034 age bracket has the lowest.
• The Coming Entrepreneurship Boom, June 2009
• In 2008, the immigrant rate of entrepreneurial
  activity 51 percentwas substantially higher
  than the native-born U.S. population28 percent.
• Kauffman Index of Entrepreneurial Activity
  1996-2008, April 2009

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Entrepreneurs Are Diverse

• Of new firms
• 70 percent are men-owned 30 percent are
  women-owned
• 81 percent are white-owned
• 9 percent are African-American-owned
• 6.6 percent are Hispanic-owned
• 4 percent are Asian-owned
• 5 percent are owned by Native Americans, Pacific
  Islanders, and individuals of other racial groups
• The Kauffman Firm Survey, March 2008

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What is a Small Business?

• In the United States, a private, independent
  business is considered small if it has less than
  500 employees. However, these standards vary by
  industry.1

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Small Business in the U.S.

• Since the mid-1990s, small businesses generally
  have created 60 to 80 percent of the net new
  employment in the United States. Further, net job
  creation in the immediate years following the
  1990-1991 and 2001 recessions stemmed from
  employment generated by small firms with fewer
  than 500 employees.
• U.S. Small Business Administration

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Businesses Started During A Recession

• 14 businesses started during an economic slump
  
• Hyatt Corporation
• Burger King Corporation
• IHOP Corporation
• The Jim Henson Company
• LexisNexis
• FedEx Corporation
• Microsoft Corporation

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Businesses Started During A Recession cont..

• 14 businesses started during a recession
  continued
• CNN
• MTV Networks
• Trader Joes
• Wikipedia Foundation, Inc.
• Sports Illustrated Magazine
• General Electric (GE)
• Hewlett Packard (HP)

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Small Business in the U.S.

• Employ over half of all private sector employees
• Generated over 64 percent of new jobs over the
  past 15 years
• Are 52 percent home-based and 2 percent
  franchised
• Seven out of 10 new employer firms last two
  years half survive five years

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Small Business in NJ

• Per 2006 U.S. Government Business Statistics,
  there are
• Over 205,000 small businesses in New Jersey
• Small businesses employ approximately 1.86
  million people almost half of New Jerseys
  workforce
• Small business account for over 77 billion in
  annual payroll
• United States Government Census 2006

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Why Own a Business?

• PROS
• Profit Accumulating Wealth
• Independence Make Decisions
• Satisfaction Realize Goals
• Self-Esteem Feeling of Accomplishment
• Satisfying Lifestyle Personal Satisfaction
• Contributing to the Community Providing Jobs
• Flexible Schedule Managing Time

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Why Own a Business?

• CONS
• Business Failure - Losing money
• Obstacles and Barriers
• Financial Insecurity Lack a Steady Income
• Long Working Hours 70 to 80 Hours Weekly
• Stress Responsibility
• Loneliness

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Being Right for Entrepreneurship

• Does the client have desire to work hard?
• Does the client have a vision about what he/she
  wants to accomplish?
• Does the client have the discipline to the meet
  the challenges of owning a business?
• Does the client have confidence in him/herself?
• Is the client willing to compete?

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Entrepreneur Characteristics

• Adaptability
• Competitiveness
• Confidence
• Discipline
• Drive
• Honesty

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Assessing Entrepreneurship

• How do you know your client is right for
  entrepreneurship?
• The U.S. Small Business Administration offers an
  effective online assessment tool to evaluate a
  clients readiness to be a small business owner.
  
• www.sba.gov/assessmenttool/index.html

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Where to Start?

• If your client is right for entrepreneurship, he
  or she does not have to start from scratch.
  There are three ways to own a business
• Start-Up
• Buy an Existing Business
• Purchase a Franchise

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Why New Jersey?

• New Jersey is committed to assisting small
  businesses and providing support to
  entrepreneurs.
• In turn, the Garden State offers a wide range of
  support services specifically designed for small
  and mid-sized businesses.

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Why New Jersey?

• Because NJ has the third largest port complex in
  the United States and two international airports
• Because NJ ranks fourth in venture capital
  investment
• Because NJ ranks fifth for college attainment
• Because if NJ was a country it would boast the
  eighteenth largest economy in the world

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New Jersey Resources

• New Jersey makes it easy for potential
  entrepreneurs to get started through its
• Taking Care of Business Portal
• www.state.nj.us/njbusiness
• Clicking on Starting a Business takes the
  client through a checklist of what is necessary
  to begin to be a small business owner.

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New Jersey Resources

• NJ Business Incubation Network - NJBIN
• www.njbin.org
• NJBIN is a collaborative statewide community of
  business experts and resource facilities
  dedicated to assisting small business succeed in
  the early stages of operation. Incubator
  services include coaching, access to capital,
  technical and business resources, and networking
  opportunities.

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NJBIN Locations

• There are 12 NJBIN locations throughout New
  Jersey
• Picatinny Innovation Center, Dover
• Sustainable Biz at FDU, Madison
• NJ Meadowlands Commission Business Accelerator,
  Lyndhurst
• Biz Development Incubator, Jersey City
• Enterprise Development Center, Newark

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NJBIN Locations cont..

• Incubator Inc./THE B.O.S.S. (Business One Stop
  Service), Plainfield
• CCIT, North Brunswick
• Rutgers EcoComplex, Bordentown
• BCC High Tech Life Sciences, Mt. Laurel
• Rutgers Camden Tech Center, Camden
• Rohrer Biz incubator, Mullica Hill
• Rutgers Food Innovation Center, Bridgeton

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NJ Resources - Financing

• New Jersey Economic Development Authority
• (NJEDA www.njeda.com)
• NJEDA offers a wide variety of programs and
  services to retain and grow businesses through
  access to capital, loans, loan guarantees,
  venture capital, and business and tax incentives.
  In addition, the EDA offers real estate
  development assistance and state-of-the-art
  technology facilities.

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New Jersey Resources

• Workforce New Jersey Public Information Network
• www.wnjpin.com
• WNJPIN is a resource for hiring employees,
  developing current employees, and providing
  information on workforce programs. Small
  business owners can find training grants and
  resources to recruit skilled candidates. It also
  provides information to small business owners on
  insurance, wages, and safety obligations.

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New Jersey Resources

• New Jersey Department of Labor Workforce
  Development
• www.dol.state.nj.us
• NJLWD is dedicated to promoting economic growth,
  job creation, and critical services. This is
  accomplished through the WIBs, One Stops and
  Business Resource Centers.

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New Jersey Resources

• NJ Commission on Science and Technology
• www.state.nj.us/scitech/about
• The Commission on Science and Technology funds
  projects focused on New Jersey priorities
  including life sciences, nanotechnology, and
  computational methods. It is responsible for the
  development and oversight of policies and
  programs promoting science and technology
  research and entrepreneurship.

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New Jersey Resources

• NJ Small Business Set-Aside Program
• This program was established to award 25 percent
  of state contracts and purchase order dollars to
  small businesses. Certain requirements must be
  met. If your client meets those eligibility
  requirements, he or she can register with the
  State of New Jersey online through the Taking
  Care of Business Portal Small and Medium
  Businesses.

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U.S. Government Resources

• Small Business Administration (SBA)
• www.sba.gov
• The SBA is the official business link to the
  U.S. government. It offers entrepreneurs the
  ability to find compliance information for all
  major U.S. federal agencies regulating or serving
  small businesses.

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SBA Continued

• Entrepreneurs have the opportunity to
• Assess the Their Potential in Becoming a Small
  Business Owner
• Ask Questions
• Register a Business
• Find Loans and Grants
• Obtain Business Licenses
• Share Ideas
• Receive Answers to Common Questions
• Discuss Issues

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U.S. Government Resources

• Self-Employment Assistance (SEA)
• www.ows.doleta.gov/unemploy/self.asp
• New Jersey is a voluntary participant in the SEA
  program that offers dislocated or unemployed
  workers the opportunity to create their own jobs
  by starting a small business. Under this
  program, New Jersey pays a self-employment
  allowance instead of regular unemployment
  insurance benefits to help unemployed workers
  while they establish their businesses.

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U.S. Government Resources

• Small Business Development Centers (SBDCs)
• www.njsbdc.com
• SDBCs are located throughout New Jersey and
  provide management assistance to current and
  prospective business owners. These centers offer
  one-stop assistance to business owners by
  providing a wide range of information and
  guidance.

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U.S. Government Resources

• Service Core of Retired Executives (SCORE)
• www.score.org
• SCORE is a resource partner of the Small
  Business Administration that provides mentoring,
  workshops, how-to information, and online
  training. You can search SCORE by zip code on
  its web site to direct your client to a chapter
  in his or her area.

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U.S. Government Resources

• U.S. Export Assistance Centers
• www.export.gov
• Small businesses operate in a global
  marketplace, U.S. Export Assistance Centers
  provide local export assistance as well as
  counseling services. The New Jersey Centers are
  in Newark and Trenton.

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U.S. Government Resources

• Defense Procurement Technical Assistance Center
  (DPTAC)
• www.njit.edu/dptac
• If your client is interested in marketing its
  products or services to federal, state, or local
  government agencies, DPTAC is the place to go.
  DPTAC provides contractual and technical
  assistance to small New Jersey businesses wanting
  to do business with government.

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Taking Advantage

• North Jersey Partners encourages all current and
  potential entrepreneurs and small business owners
  to take advantage of what the U.S. Government and
  New Jersey has to offer. The abundance of
  resources at the federal and state level should
  be utilized by your clients to assist them in
  starting and building their business.

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Information Sources

• U.S. Small Business Administration Frequently
  Asked Questions www.sba.gov
• The Coming Entrepreneurship Boom, June 2009,
  Ewing Marion Kauffman Foundation
  www.kauffman.org
• Kauffman Index of Entrepreneurial Activity
  1996-2008, April 2009, Ewing Marion Kauffman
  Foundation www.kauffman.org
• The Kauffman Firm Survey, March 2008, Ewing
  Marion Kauffman Foundation www.kauffman.org

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Information Sources

• 5. United States Government Census 2006
  www.census.gov
• 6. 14 Big Businesses That Started in a Recession,
  Sarah Caron - http//www.insidecrm.com/features/bu
  sinesses-started-slump-111108/

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Acknowledgements

• This Webinar has been funded in whole by funds
  from the U.S. Department of Labor Employment and
  Training Administration through the WIRED
  Initiative.