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Entrepreneurship and
Starting a small
Business
Chapter: 6
https://www.youtub
e.com/watch?v=lJjIL
Qu2xM8
Entrepreneur
ship
Accepting the risk of
starting and running
a business.
• Entrepreneurs prefer
to have more control
over their destiny.
Reasons for taking entrepreneurial
risks
Opportunity
Profit
Independence
Challenge
https://www.youtub
e.com/watch?v=-sQ
eREfZY-8
What you need to be an Entrepreneur
 Curiosity
 Self-directed  Willingness to
experiment
 Self-nurturing  Adaptability
  Decisiveness
Action-oriented
 Self Awareness
 Highly energetic  Risk Tolerance
 Comfort with
 Tolerant of uncertainty Failure
 Persistence
 Innovative
thinking
 Long Term Focus
Important
Terms to Entrepreneurial Teams -- A group of
experienced people from different areas of
Know business who join to form a managerial team
with the skills to develop, make and market a
new product.
Micro Preneurs -- Entrepreneurs willing to

accept the risk of starting and managing a
business that remains small, lets them do the
work they want to do, and offers a balanced
lifestyle.
Micro Preneurs or Home Based Business
Downsides Benefits
 Difficult to create work habits  Ability to start your business
 immediately
Limited support system
 Minimal capital needed
 Workspace may be limited
 Comfortable working conditions
 Clients may be uncomfortable
coming to the house  Tax benefits
 Zoning restrictions  Low risk for trial and error
Important Terms to Know
Intrapreneurs- Creative
people who work as
entrepreneurs within
corporations.
Entrepreneur
vs
intrapreneur
Managing a Small Business Planning your business.
The functions of business in a small-business setting:
1. Planning your business.
2. Financing your business.
3. Knowing your customers (marketing).
4. Managing your employees (human resource development).
5. Keeping records (accounting).
Although all the functions are important in both the start-up and management
phases of the business, the first two—planning and financing—are the primary
concerns when you start your business. The others are the heart of your operations
once the business is under way.
11
Managing a Small Business Planning your business
1. Planning Your Business

At this stage, the entrepreneur needs a business plan. A business plan is a detailed written statement
that describes the nature of the business, the target market, the advantages the business will have
over competition, and the resources and qualifications of the owner(s).
A business plan forces potential small-business owners to be quite specific about the products or
services they intend to offer. They must analyze the competition, calculate how much money they
need to start, and cover other details of operation.
A business plan is also mandatory for talking with bankers or other investors.
12
1. Planning Your Business: Writing a Business Plan
A good business plan takes a long time to write, but you’ve got only five minutes, in the executive
summary, to convince readers not to throw it away. Since bankers receive many business plans
every day, the summary has to catch their interest quickly.
13
2. Financing Your Small Business

1. Personal funds-saved or inherited of their own capital.
2. Borrowings from relatives and friends.
3. Trade credit.
4. Commercial Bank loans, Bangladesh Small and Cottage Industries Corporations (BSCIC)
loans.
5. Bank loan.
6. Mortgage loan.
14
3. Knowing Your Customers

One of the most important elements of small-business success is knowing the market, which
consists of consumers with unsatisfied wants and needs who have both resources and willingness to
buy.
Once you have identified your market and its needs, you must set out to fill those needs by offering
top quality at a fair price with great service. Remember, it isn’t enough to get customers—you have
to keep them
Marketing Mix
Customer Segmentation
15
Managing a Small Business Planning your business.
4. Managing Your Employees
Good employee relations are important for small-business management.
Employees of small companies are often more satisfied with their jobs than are their counterparts in
big business. Why? Quite often they find their jobs more challenging, their ideas more accepted,
and their bosses more respectful.
16
5. Keeping Records
Accurate recordkeeping enables a small-business owner to follow daily sales, expenses, and profits,
as well as help owners with inventory control, customer records, and payroll.
Many business failures are caused by poor accounting practices that lead to costly mistakes.
A good accountant can help you decide whether to buy or lease equipment and whether to own or
rent a building. He or she may also help you with tax planning, financial forecasting, choosing
sources of financing, and writing requests for funds.
17
Thank you

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Entrepreneurship and

Micro Preneurs -- Entrepreneurs willing to

1. Planning Your Business

2. Financing Your Small Business

3. Knowing Your Customers

Good employee relations are important for small-business management.

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