3920-c2 - New Venture and Small Business Management UNIT 2...

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Unformatted text preview: New Venture and Small Business Management UNIT 2 MODULE 1 Entrepreneurship: Working Towards a Definition WHAT IS ENTREPRENEURSHIP ? Is it just a buzzword ? Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENDRE ENTREPRENEUR "person in effective control of commercial undertaking; one who undertakes a business or enterprise with chance of profit or loss..." OXFORD UNTERNEHMAN ENTREPRENEUR Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved DEFINING ENTREPRENEURSHIP l ATTRIBUTES OF ENTREPRENEURSHIP l 2 general themes l ENTREPRENEURSHIP - what it entails l ENTREPRENEURSHIP - characteristics and/or abilities Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved l ORGANIZATION CREATION (ie. founders) OPPORTUNITY RECOGNITION (proactive strategists) INNOVATION (product/service, market, technology) RISK TAKING (financial, career, personal) Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management ATTRIBUTES OF ENTREPRENEURSHIP l ATTRIBUTES OF ENTREPRENEURSHIP l l l l ORGANIZATION CREATION (ie. founders) OPPORTUNITY RECOGNITION (proactive strategists) INNOVATION (product/service, market, technology) RISK TAKING (financial, career, personal) l l l ORGANIZATION CREATION (ie. founders) OPPORTUNITY RECOGNITION (proactive strategists) INNOVATION (product/service, market, technology) RISK TAKING (financial, career, personal) Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ATTRIBUTES OF ENTREPRENEURSHIP l ATTRIBUTES OF ENTREPRENEURSHIP l l l l ORGANIZATION CREATION (ie. founders) OPPORTUNITY RECOGNITION (proactive strategists) INNOVATION (product/service, market, technology) RISK TAKING (financial, career, personal) l l l ORGANIZATION CREATION (ie. founders) OPPORTUNITY RECOGNITION (proactive strategists) INNOVATION (product/service, market, technology) RISK TAKING (financial, career, personal) Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Therefore... ENTREPRENEURSHIP = DOING l l l l ORGANIZATION ORGANIZATION CREATION CREATION OPPORTUNITY OPPORTUNITY RECOGNITION RECOGNITION creating recognizing innovating risk taking INNOVATION INNOVATION RISK TAKING RISKTAKING Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management ORGANIZATION CREATION SCORECARD (circle appropriate score and total out of 10) involved responsible 2 2 2 2 OPPORTUNITY RECOGNITION SCORECARD (circle appropriate score and total out of 10) 1 MARKET ENTRY 7 INTRODUCTION GROWTH MATURITY specifying and sourcing physical assets identifying needs and sourcing financing recruiting and/or training personnel selection and/or design of product/service selection and/or design of production or service delivery system 1 1 1 1 3 1 10 2 PROFIT POTENTIAL Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved low - medium - high 1 2 3 10 INNOVATION SCORECARD (circle appropriate score and total out of 10) l l l l l RISK TAKING SCORECARD 2 (circle appropriate score and total out of 10) Financial Risk percent of personal net worth <25% / 25-50% / 50+% new product/service new market geographic 1 1 customer group 2 1 2 60+ 3 attractive 2 Forgone Career Opportunities unattractive application of technology new product/service delivery new to the individual 10 2 2 2 Level of Expectations 10 low Hours Committed <60 1 1 2 2 medium high 3 Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved DEGREE OF ENTREPRENEURSHIP ORGANIZATION CREATION SCORECARD specifying and sourcing physical assets identifying needs and sourcing financing recruiting and/or training personnel originator 2 2 2 2 2 10 10 franchisee 0 2 1 0 0 3 10 SOMEWHAT SCORE TRULY selection and/or design of product/service 1 40 selection and/or design of production or service delivery system Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 3 New Venture and Small Business Management OPPORTUNITY RECOGNITION SCORECARD franchisee 1 ORIGINATOR ORGANIZATION ORGANIZATION CREATION CREATION OPPORTUNITY OPPORTUNITY RECOGNITION RECOGNITION FRANCHISEE ORGANIZATION ORGANIZATION CREATION CREATION OPPORTUNITY OPPORTUNITY RECOGNITION RECOGNITION originator MARKET ENTRY 7 INTRODUCTION GROWTH 3 10 10 6 6 3 3 3 3 INNOVATION INNOVATION RISK TAKING RISK TAKING INNOVATION INNOVATION RISK TAKING RISK TAKING MATURITY 7 7 8 8 3 3 77 PROFIT POTENTIAL low - medium - high 1 2 3 franchisee originator TOTAL SCORE 31 TOTAL SCORE 16 3/10 6/10 TRULY ENTREPRENEURIAL > ENTREPRENEURIAL Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENEURIAL ATTRIBUTES ENTREPRENEURIAL ORIENTATION ORIGINATOR MANAGEMENT MANAGEMENT ORIENTATION ORIENTATION STRATEGIC STRATEGIC ORIENTATION ORIENTATION FRANCHISEE MANAGEMENT MANAGEMENT ORIENTATION ORIENTATION STRATEGIC STRATEGIC ORIENTATION ORIENTATION ORGANIZATION ORGANIZATION CREATION CREATION OPPORTUNITY OPPORTUNITY RECOGNITION RECOGNITION MANAGEMENT MANAGEMENT ORIENTATION ORIENTATION STRATEGIC STRATEGIC ORIENTATION ORIENTATION 10 10 6 6 3 3 3 3 INNOVATION INNOVATION RISK TAKING RISK TAKING CREATIVE CREATIVE ORIENTATION ORIENTATION INVESTMENT INVESTMENT ORIENTATION ORIENTATION CREATIVE CREATIVE ORIENTATION ORIENTATION INVESTMENT INVESTMENT ORIENTATION ORIENTATION CREATIVE CREATIVE ORIENTATION ORIENTATION 7 7 8 8 3 3 INVESTMENT INVESTMENT ORIENTATION ORIENTATION 7 7 TOTAL 31 TOTAL 16 Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 4 New Venture and Small Business Management UNIT 2 MODULE 2 The Entrepreneur ENTREPRENEURS ARE... "large and important animals" If they contribute to society as believed. Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved WHO IS AN ENTREPRENEUR ? A TRADITIONAL PROFILE... l l l l l l THE ENTREPRENEURIAL REVOLUTION PARTICIPANTS INCLUDE... account for x% of new business start-ups male 30 - 40 years of age first born entrepreneurial family married / children well educated WOMEN IMMIGRANTS YOUTH > 33% 16% 25% Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ARE ENTREPRENEURS BORN OR ARE THEY MADE? ARE ENTREPRENEURS ENDOWED WITH TRAITS OR QUALITIES THAT DIFFERENTIATE THEM FROM OTHERS? Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE ENTREPRENEUR AS A GREAT PERSON This charismatic leader possesses... CONFIDENCE CREATIVITY RESOURCEFULNESS FORESIGHT INTELLIGENCE VERSATILITY PERSEVERANCE DILIGENCE ENERGY INITIATIVE PERCEPTIVENESS ETC... Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management "PSYCHOLOGICAL SCHOOL" Personality factors associated with entrepreneurial inclination include... l l l l l A HIGH NEED FOR ACHIEVEMENT... is present in many successful entrepreneurs leads to setting of challenging goals with growth and profit data providing feedback is also present in successful corporate executives Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved high need for achievement risk taking propensity tolerance for ambiguity inner locus of control l l Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENEURS PREFER MODERATE RISK TAKING! l AMBIGUITY... l refers to situations that are doubtful or uncertain (look to novelty or complexity) may be a motivational catalyst fostering entrepreneurial success tolerance of ambiguity may be proportional to risk-taking propensity Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved emanates from their need for achievement is facilitated by planning l l l Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENEURS ARE SELF-CONFIDENT AND DON'T BELIEVE IN DESTINY OR LUCK Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved WHO IS AN ENTREPRENEUR? Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management ENTREPRENEURS ARE THOSE WHO PARTICIPATE IN ENTREPRENEURIAL BEHAVIOUR. Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 3 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL UNIT 2 MODULE 3 An Entrepreneurial Process Time Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved FORMATION EXPANSION STABILITY Performance A SMALL BUSINESS LIFECYCLE MODEL NEW VENTURE CREATION FORMATION EXPANSION STABILITY A SMALL BUSINESS LIFECYCLE MODEL NEW VENTURE CREATION FORMATION EXPANSION late growth STABILITY Performance Performance early growth Time Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Time Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A SMALL BUSINESS LIFECYCLE MODEL NEW VENTURE CREATION INSTITUTIONALIZATION EXPANSION FORMATION STABILITY LIFECYCLE IMPLICATIONS FOR THE ORGANIZATION NEW VENTURE CREATION ADMINISTRATIVE LEVEL OF ACTIVITY ENTREPRENEURIAL TIME Performance early growth late growth Time Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENEUR OWNER-MANAGER Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management LIFECYCLE IMPLICATIONS FOR THE ORGANIZATION l As an entrepreneur, look to these themes to determine capability requirements As an advisor, these themes suggest types of assistance required INTERNAL SOURCE OF CHALLENGES EXTERNAL l TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL UNIT 2 MODULE 4 New Venture Creation Performance NEW VENTURE CREATION FORMATION EXPANSION STABILITY Time CONCEPTUAL PHYSICAL Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved OPPORTUNITY RECOGNITION BUSINESS CONCEPT EXTERNALLY STIMULATED OPPORTUNITIES Decision to Start Search for Opportunities Opportunity Recognition MOST PEOPLE BELIEVE ENTREPRENEURS ARE HAPPIER, AND 40% INTEND TO START THEIR OWN BUSINESS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE DECISION TO START... PUSH FACTORS THE DECISION TO START... PULL FACTORS l unemployment l job dissatisfaction l unattractive employment opportunities Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved l desire to control one's destiny l freedom from supervision l potential for profit l personal development Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management STRATEGIC WINDOWS FOR ENTREPRENEURIAL OPPORTUNITY HIGH experience resources opportunity costs motivation energy DO PUSH FACTORS... l imply a lower opportunity cost? l explain the high failure rate of new ventures? LOW COMPLETE FUNCTIONAL POSITIONAL INDUSTRY FINANCIAL RETIREMENT COLLEGE EXPERTISE AUTHORITY EXPERTISE INDEPENDENCE Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved OPPORTUNITIES ARE... IDEA vs. OPPORTUNITY Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved l attractive l timely l durable AND THEY... l create or add value Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE SCREENING PROCESS MARKET SOURCES OF BUSINESS IDEAS l workplace experiences l existing businesses and franchises l patents and product licenses l trade shows, publications, and contacts l employers, teachers, and professional contacts Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved COMPETITION VENTURE OPPORTUNITY ECONOMY CAPABILITIES Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management CONCEPTUAL 3 PHASES l opportunity recognition l harnessing resources l exchange phase PHYSICAL OPPORTUNITY RECOGNITION Decision to Start Search for Opportunities BUSINESS CONCEPT Opportunity Recognition EXTERNALLY STIMULATED OPPORTUNITIES business concept INTERNALLY STIMULATED OPPORTUNITIES Opportunity Recognition Decision to Start Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE BUSINESS CONCEPT IS CHARACTERIZED BY... BUSINESS CONCEPT COMMITMENT TO CREATION go / no-go decision? l product, market, industry, firm-specific, and other factors SHOULD BE ARTICULATED IN A FORMAL BUSINESS PLAN ! Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved l look to entrepreneurial characteristics to influence the decision making process Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved AMBIGUITY IS REDUCED BY... 1) gathering information in the planning process avoiding complex and novel situations RISK-TAKING PROPENSITY median $40,000 60 hr/wk LEVEL OF RISK 2) BUSINESS CONCEPT COMMITMENT TO CREATION PHYSICAL CREATION Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 3 New Venture and Small Business Management WHY INTENDERS DO NOT PROCEED TO ESTABLISH A VENTURE (multiple response permitted) WHY INTENDERS DO NOT PROCEED TO ESTABLISH A VENTURE (multiple response permitted) % of sample lack of finance restraints lack of readiness change in employment too risky too much time involved poor economy 50 31 26 21 12 7 4 lack of finance restraints lack of readiness change in employment too risky too much time involved poor economy % of sample 50 31 26 21 12 7 4 Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved WHY INTENDERS DO NOT PROCEED TO ESTABLISH A VENTURE (multiple response permitted) % of sample lack of finance restraints lack of readiness change in employment too risky too much time involved poor economy 50 31 26 21 12 7 4 LOCUS OF CONTROL "Entrepreneurs control their own destiny" Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ENTREPRENEURS' OPTIMISM 35 30 25 20 theirs will succeed HOW TO TEMPER ENTREPRENEURIAL EUPHORIA? Seek objective and detached advice Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved % 15 10 5 0 1 2 3 4 5 6 7 8 9 10 others will succeed ODDS OF SUCCEEDING (out of 10) Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 4 New Venture and Small Business Management HARNESSING RESOURCES RESOURCE NEEDS... Set-up Production Capability manufacturing Commitment to Create Operational Readiness service Organization Creation Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved EASE OF ACCESSING RESOURCES IS A FUNCTION OF THE ATTRACTIVENESS OF THE BUSINESS CONCEPT BANKS AND INVESTORS POOR OUTLOOK l limited or no availability l expect high return GOOD OUTLOOK l more generous availability l accepting of lower returns l ORGANIZATION CREATION RECEIVES LITTLE ATTENTION SUPPLIERS l cash-on-delivery l "sorry, there's better opportunities" l opportunity for some trade credit l FORMALIZATION IS AN EVOLUTIONARY PROCESS EMPLOYEES l superior employees will be interested Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved FEEDBACK FROM THE MARKET PLACE PRODUCTION CAPABILITY MARKET INTERFACE BUSINESS CONCEPT OPERATION (product /service) CONCLUSION: Planning... l refines the business concept CUSTOMER l facilitates decision making l influences success Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved ORGANIZATION CREATION operational feedback strategic feedback Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 5 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL UNIT 2 MODULE 5 Targeting Success By Understanding Failure TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved FORMATION EXPANSION STABILITY PERFORMANCE A SMALL BUSINESS LIFECYCLE MODEL FORMATION EXPANSION STABILITY DO... 50% of businesses fail in their first year ? 80 to 90% by year 10 ? PERFORMANCE TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved DEFINITIONS DISCONTINUANCE l cessation of business activities FAILURE l discontinuance resulting in a loss to creditors SUCCESS l earning at least industry average profits Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved RATES OF DISCONTINUANCE 90 80 PERCENTAGE 60 OF FIRMS DISCONTINUING 40 OPERATIONS 20 0 0 2 4 6 8 10+ YEARS FROM START-UP Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL A SMALL BUSINESS LIFECYCLE MODEL FORMATION EXPANSION STABILITY FORMATION EXPANSION STABILITY PERFORMANCE PERFORMANCE DISCONTINUANCE WHEN? WHY? DISCONTINUANCE TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A SMALL BUSINESS LIFECYCLE MODEL A SMALL BUSINESS LIFECYCLE MODEL FORMATION EXPANSION STABILITY FORMATION EXPANSION STABILITY PERFORMANCE PERFORMANCE BREAK-EVEN POINT TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A SMALL BUSINESS LIFECYCLE MODEL PROBLEMS ENCOUNTERED BY NEW VENTURES CAN BE CLASSIFIED AS... l marketing-related l management-related l finance-related Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved above average industry profits = SUCCESS PERFORMANCE marginal profits BREAK-EVEN POINT losses TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management MARKETING-RELATED PROBLEMS FORMATION 1 2 3 Market Assessment Advertising MANAGEMENT-RELATED PROBLEMS FORMATION 1 2 3 Business Planning Business Knowledge Cost Control EXPANSION 1 2 3 Customer Contact Market Assessment Expansion STABILITY 1 2 3 Customer Contact Pricing EXPANSION 1 2 3 Inventory/Cost 1 Control Organization Design/ Personnel Business Planning STABILITY Organization Design/ Personnel Inventory/Cost Control Expanding Capabilities 2 3 Location Decisions Market Assessment Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved FINANCE-RELATED PROBLEMS FORMATION 1 2 3 Financial Planning Accounting FREQUENCY WITH WHICH PROBLEMS ARE ENCOUNTERED 70 EXPANSION 1 2 3 Cash Flow STABILITY 1/2 Cash Flow Accounting RELATIVE FREQUENCY Marketing Management Finance FORMATION EXPANSION STABILITY Accounting Cash Flow Financial Planning 3 Financial Planning Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved SIGNIFICANT CHANGES IN PROBLEMS THAT ARE ENCOUNTERED 40 UNDERSTANDING THESE PROBLEMS LEADS TO IDENTIFICATION OF REQUIRED CAPABILITIES ENTREPRENEURS CAN CLOSE CAPABILITY GAPS BY... l hiring staff l taking on partners l personal development Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved RELATIVE FREQUENCY Human Resources Sales & Marketing Obtaining Financing FORMATION EXPANSION STABILITY Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 3 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL TWO PATHS TO DISCONTINUANCE SELL PERFORMANCE BREAK-EVEN POINT or losses discontinuance? FOLD Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A SMALL BUSINESS LIFECYCLE MODEL Likelihood of Folding the Business profits gain AS PERFORMANCE marginal profits ? BREAK-EVEN POINT losses loss TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Level of Profit Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved FOLDING UP... OK sell assets pay creditors FAILURE Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved COSTS OF FAILURE l loss of owner's capital l personal issues (time, family, health) l social consequences (underutilized resources) Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 4 New Venture and Small Business Management A SMALL BUSINESS LIFECYCLE MODEL profitability PERFORMANCE BREAK-EVEN POINT discontinuance?? TIME Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved SATISFACTION Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved SATISFACTION APPEARS MORE COMMON AMONG... l those emphasizing non-economic goals INFLUENCES l women men SATISFACTION Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved CLOSING GAPS ENHANCE REALITY TEMPER EXPECTATIONS SATISFIED YES NO CONTINUE DISCONTINUE Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 5 New Venture and Small Business Management A PROFILE OF SUCCESSFUL VENTURES LEAD ENTREPRENEUR FINANCING A PROFILE OF SUCCESSFUL VENTURES LEAD ENTREPRENEUR FINANCING MANAGEMENT BUSINESS CONCEPT MANAGEMENT BUSINESS CONCEPT Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A PROFILE OF SUCCESSFUL VENTURES LEAD ENTREPRENEUR FINANCING A PROFILE OF SUCCESSFUL VENTURES LEAD ENTREPRENEUR FINANCING MANAGEMENT BUSINESS CONCEPT MANAGEMENT BUSINESS CONCEPT Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A PROFILE OF SUCCESSFUL VENTURES LEAD ENTREPRENEUR FINANCING MANAGEMENT BUSINESS CONCEPT Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 6 New Venture and Small Business Management UNIT 2 MODULE 6 Developing Entrepreneurial Ability CAN ENTREPRENEURSHIP BE TAUGHT ? Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved REQUISITE AREAS OF DEVELOPMENT l l l l THE BIGGEST OBSTACLE TO SELF DEVELOPMENT IS Knowledge Skills Outlook Personality Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved TIME ! Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved A MODEL FOR SELF DEVELOPMENT SELF-AWARENESS A MODEL FOR SELF DEVELOPMENT SELF-AWARENESS DEVELOPMENT STRATEGIES DEVELOPMENT STRATEGIES EVALUATE OUTCOMES Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved EVALUATE OUTCOMES Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management DEVELOPMENT STRATEGIES l l l l A MODEL FOR SELF DEVELOPMENT SELF-AWARENESS re-evaluate and recycle real-life experiences simulations lectures reading DEVELOPMENT STRATEGIES EVALUATE OUTCOMES Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved REQUIRED KNOWLEDGE l l l GAINING KNOWLEDGE FUNCTIONAL AREA STRATEGY MARKETING Marketing FINANCE MANAGEMENT Finance Management Traditional Teaching Methods Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved REQUIRED SKILLS l l l DEVELOPING SKILLS SKILL STRATEGY Outward-Bound Toastmasters International Traditional Methods LEADERSHIP ORAL COMMUNICATION HUMAN RELATIONS LEADERSHIP ORAL COMMUNICATION HUMAN RELATIONS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management REQUIRED OUTLOOK l l l ENHANCING ONE'S OUTLOOK FACTOR STRATEGY Case Study Simulation Group Discussion CREATIVITY OPPORTUNISTIC THINKING VISION CREATIVITY OPPORTUNISTIC THINKING VISION Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved PERSONALITY... l REQUIRED PERSONALITY CHARACTERISTICS l l l l is acquired during youth is not easily changed self-motivation risk-taking common sense values l Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved AREAS OF DEVELOPMENT ROLE OF... Knowledge EDUCATION ETHICAL BEHAVIOUR FOSTERS LONG-TERM, MUTUALLY BENEFICIAL RELATIONSHIPS Skills Outlook Personality Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved EXPERIENCE 3 New Venture and Small Business Management TO PREPARE FOR ENTREPRENEURSHIP START EARLY ! Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 4 New Venture and Small Business Management UNIT 2 MODULE 7 Self Assessment FAILURE SUCCESS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE SACRIFICES ENTREPRENEURS MAKE... l risk a portion of their net worth l work long hours l pursue personal development l relocate Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved SACRIFICES = RISK HOW DO WE REDUCE RISK ? l a sound business concept l accurately assessing one's abilities Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved THE MERGING AND EXPANDING RESPONSIBILITIES OF THE ENTREPRENEUR A MODEL FOR SELF ASSESSMENT PERSONAL LIFE ENTREPRENEURIAL ABILITY PERSONAL ENTREPRENEURIAL FUNCTIONAL AREAS TECHNICAL FUNCTIONAL ABILITY TECHNICAL ABILITY Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 1 New Venture and Small Business Management A MODEL FOR SELF ASSESSMENT PERSONAL LIFE ENTREPRENEURIAL ABILITY PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT FUNCTIONAL ABILITY TECHNICAL ABILITY PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT FINANCIAL = PLANNING PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 2 New Venture and Small Business Management INCOME REQUIREMENTS INCOME AND DISCONTINUANCE INCOME FROM THE BUSINESS target INCOME ($/YEAR) INCOME replacement subsistence ($/year) SUBSISTENCELEVEL INCOME PERSONAL SAVINGS REQUIRED Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved INCOME REQUIREMENTS INCOME REQUIREMENTS target INCOME ($/YEAR) replacement subsistence INCOME ($/YEAR) target replacement subsistence Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved PERSONAL LIFE ASSESSMENT FAMILY/ FAMILY/ SOCIAL SOCIAL FINANCIAL FINANCIAL ASPECTS ASPECT A MODEL FOR SELF ASSESSMENT PERSONAL LIFE ENTREPRENEURIAL ABILITY PERSONAL PERSONAL WELL-BEING WELL-BEING THE THE BUSINESS BUSINESS FUNCTIONAL ABILITY TECHNICAL ABILITY Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved WORK LESS & EARN MORE Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 3 New Venture and Small Business Management A MODEL FOR SELF ASSESSMENT PERSONAL LIFE ENTREPRENEURIAL ABILITY A MODEL FOR SELF ASSESSMENT PERSONAL LIFE ENTREPRENEURIAL ABILITY FUNCTIONAL ABILITY TECHNICAL ABILITY FUNCTIONAL ABILITY TECHNICAL ABILITY Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved SELF ASSESSMENT PERSONAL DEVELOPMENT ENTREPRENEURSHIP Copyright 1999 Jon Kerr and Captus Press Inc. All right reserved 4 ...
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