Comm' 320 Entrepreneurship

1
Comm. 320 Entrepreneurship

• The Entrepreneur and the New Economy

2
Why study Entrepreneurship?

• Approximately 97 of all businesses are small
• 60 of the labour force is employed by small
  businesses
• More and more Business graduates are attracted to
  the demands of small business and the potential
  payoffs
• We have entered the Knowledge-Based Era

3
Defining Small Business General Characteristics

• The business is managed by the owner or owners of
  the firm
• Decision making lies mostly with one executive
• Annual sales are less than 2 million
• There is a close management-employee relationship
• Normally, the company stock is not listed with an
  stock exchange
• The firm is not dominate in the industry (size of
  business, market share)
• The business employs less than 200 people

4
The Changing Environment

• The New Economy

5
Small business and Strategy

• Small organizations can attain market success by
• developing leading technologies
• adapting quickly to market changes
• focusing on niche markets
• Innovation comes from the ability to be flexible
  and adaptable to technological changes in the
  environment
• Apple revolutionized the PC industry
• Kodak has had its industry rapidly changes after
  100 years of no major technological developments
• Economies of Scale can be obtained by smaller
  businesses flexible manufacturing, outsourcing,
  strategic alliances

6
Economic Trends Small Business enterprises

• A shift from manufacturing to services oriented
  businesses
• This provides more opportunity for small firms
  low capital costs, knowledge based assets (i.e.
  employees) and the importance of customer
  relationship building -- greatly reduce the
  barriers of entry
• Growth in Home-based businesses
• advances in technology, layoffs, low over-head,
  available financing
• Global Economy Virtual business
• Access to large markets is now easier than ever
  before
• IT, export agents, warehousing, freight
  forwarding, duty customs brokering, foreign
  marketing firms all provide the resources needed
  to access the global economy

7
Focus of the course

• Components of a Successful Venture
• Market acceptance of the product or service
• The attractiveness of the industry
• The new ventures capabilities (the entrepreneurs
  skills and competence)
• Financing
• Business Strategy development
• Innovation and market acceptance
• Marketing and product/service positioning
• H/R development
• Managing, growing and expanding
• Developing international markets
• Succession planning and Family business
• Financial management
• Professional management
• Entrepreneurship and large organizations
• Corporate entrepreneurship