The Nature of Entrepreneurship

and Small Business

Entrepreneurship : the process of creating and

managing a business to achieve desired

objectives

Small business : any independently owned and

operated business that is not dominant in its

competitive area and does not employ more than

500 people

The Role of Small Business in the

American Economy

Job Creation

Innovation

Industries That Attract Small Business

Retailing and Wholesaling

Services

Manufacturing

High Technology

Advantages of Small-Business

Ownership

Independence

Costs

Flexibility

Focus

Reputation

Disadvantages of Small-Business

Ownership

High Stress Level

High Failure Rate :

Undercapitalization

Managerial Inexperience or Incompetence

Inability to Cope with Growth

Starting a Small Business

The Business Plan

Forms of Business Ownership

Financial Resources :

Equity Financing

Debt Financing

The Future for Small Business

Demographic Trends

Technological and Economic Trends

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