SmallBusiness Ownership Advantages Independence Costs Flexibility Focus Reputation
Small-Business Ownership ü Advantages • Independence • Costs • Flexibility • Focus Reputation ü Disadvantages • High stress level • High failure rate • Undercapitalization • Managerial inexperience or incompetence • Inability to cope with growth © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 1
Successful Traits of Young Entrepreneurs © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 2
Advantages of Independence • Independence – To do better for themselves than they could do by remaining with their current employer or by changing jobs – To choose whom they work with, the flexibility of where/when to work, and the option to work in a family setting © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 3
Advantages of Costs • Costs – Spend less money on wages/salaries, rent, utilities, etc. – Use external firms to handle accounting, advertising, and legal counseling – Friends and family volunteer time to work on projects © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 4
Flexibility, Focus, and Reputation Advantages • Flexibility – Small size allows flexibility to adapt to changing market demands – Usually one layer of management (the owner) so decisions can be made and executed quickly • Focus – Focus efforts on a precisely defined market niche (a specific group of custom • Reputation – Because of their capacity to focus on narrow niches, can develop enviable reputations for quality and service © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5
Hampton Creek • Hampton Creek, in San Francisco, focuses on using technology to produce sustainable protein products Ø Developed a new type of egg substitute made from plant materials ♦ Concept is likely to attract vegetarians and consumers concerned with sustainability Ø Founder and CEO Josh Tetrick has bigger plans ♦ ♦ Concept is not to focus solely on a niche industry Believes the solutions discovered at Hampton Creek will eventually help solve food shortages through alternatives that do not place a strain on the environment © 2017 by Mc. Graw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 21
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