After studying this chapter, you should be 
           able to…
           1. Define the terms entrepreneur and small business 
                    owner, and explain how the terms are related.
           2. Explain the basic characteristics of 
                    entrepreneurial opportunities, and give 
                    examples of individuals who successfully 
                    started their own businesses.
           3. Describe some motivators or rewards for 
                    owning your own business.
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           4. Identify some of the basic types of entrepreneurs                                                                                                                                                     h
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                    and entrepreneurial ventures.                                                                                                                                                                   D
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       © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted 
       in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.                                                                                 1–2
           After studying this chapter, you should be 
           able to…
           5. Describe five potential competitive advantages 
                    of small entrepreneurial companies compared 
                    to large firms.
           6. Discuss factors related to readiness for 
                    entrepreneurship getting started in an 
                    entrepreneurial career.
           7. Explain the concept of an entrepreneurial 
                    legacy and the challenges involved in 
                                                                                                                                                                                                                    n
                    crafting a meaningful legacy.                                                                                                                                                                   a
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                                                                                                                                                                                                                    ©
       © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted 
       in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.                                                                                 1–3
               The Contributions of Small Business 
               • Small Businesses:
                       Represent 99.7% of all firms with employees.
                       Employ over 50% of employees in the private sector.
                       Account for 45% of private payrolls.
                       Generated 60 to 80% of net new jobs in past decade.
                       Hire 40% of high-tech employees 
                       Represent 97.3% of all exporters.
       © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted 
       in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.                                                                                 1–4
               Who Are Entrepreneurs?
               • Entrepreneurs are:
                       A person who starts and/or operates a business.
                       Individuals who discover market needs and launch 
                              new firms to meet those needs.
                       Risk takers who provide an impetus for change, 
                              innovation, and progress.
                       All active owner-managers 
                              (founders and/or managers 
                              of small businesses).
       © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted 
       in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.                                                                                 1–5
               What Is a Small Business?
               • Criteria for Defining Smallness in Business
                       1. Small in size relative to larger competitors (fewer 
                                  than 100 employees)
                       2. Localized business operations (except marketing)
                       3. Financing supplied by one person or small group
                       4. Has the potential to become more 
                                  than a “one-person show”                                                                                                                       
       © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted 
       in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.                                                                                 1–6