Entrepreneurs: The Driving

Force Behind Small Business

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The World of the Entrepreneur

 In the U.S., entrepreneurs start more than

6 million businesses a year!
 Global Entrepreneurship Monitor (GEM)
Approximately 8% of the U.S. population is
actively involved in entrepreneurial activity
Nearly 11% of people in 49 GEM countries
studied are involved in starting a new business

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 What is an Entrepreneur?
One who creates a new business in the face of
risk and uncertainty for the purpose of
achieving profit and growth by identifying
opportunities and assembling the necessary
resources to capitalize on them

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Employees Vs. Entrepreneur

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Entrepreneurship in EE

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Entrepreneurship in BioMed

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 What is an Entrepreneur?

An entrepreneur is someone who is

willing to work 16 hours a day to
keep from working 8 hours a day for
someone else!

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 Characteristics of Entrepreneurs
Survey: 61% of adults in the U.S. would like
to start their own business
 Willingness to take initiative
 Preference for moderate risk
 Confidence in their ability
to succeed
 Self-reliance
 Perseverance
 Desire for immediate feedback
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 Characteristics of Entrepreneurs

 High level of energy

 Competitiveness
 Future orientation
Serial entrepreneurs
 Skilled at organizing
 Value achievement over money

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 How to Spot Entrepreneurial
Opportunities

 Creativity vs. Innovation

 Creativity – the ability to develop new
ideas and to discover new ways of
looking at problems and opportunities
 Innovation – the ability to apply
creative solutions to problems and
opportunities to enhance or to enrich
people’s lives

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 How to Spot Entrepreneurial
Opportunities

 Monitor trends and exploit them early on

 Sonic Mule
 Take a different approach to an existing market
 Poo Poo Paper Company
 Put a new twist on an old idea
 Green Grass at Last

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 How to Spot Entrepreneurial
Opportunities

 Look for creative ways to use existing resources

 Greenfields Coal
 Realize that others have the same problem that
you do
 SkirtSports
 Notice what is missing
 Dogs on Wheels

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 Benefits of Small Business Ownership

The opportunity to:

 Control your own destiny
 Make a difference
 Social entrepreneurs
 Reach your full potential
 Reap impressive profits
 Contribute to society and to be recognized for your
efforts
 Do what you enjoy and to have fun at it

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 Drawbacks of Small Business
Ownership
 Uncertainty of income
 Risk of losing your entire investment
 Long hours and hard work

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 Small Business Owners' Work Week
Number of Hours Worked per Week
1 to 39 hours
More than 70 hours 10%
20%

40 to 49 hours
29%

60 to 69 hours
19%

50 to 59 hours
22%

Average workweek = 54 hours

Source: MasterCard Global Small Business Survey, 2007.

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 Drawbacks of Small Business
Ownership
 Uncertainty of income
 Risk of losing your entire investment
 Long hours and hard work
 Lower quality of life until the business
gets established

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 Owner Age at Business Formation

33.5%
35.0% 31.1%

30.0%
25.0%
17.8%
20.0%
15.0%
9.8%
10.0% 6.1%

5.0% 1.7%

0.0%
Under 25 25-34 35-44 45-54 55-64 65+
Age
Source: National Federation of Independent Businesses and Wells Fargo Bank, 2002.

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 Drawbacks of Small Business
Ownership
 Uncertainty of income
 Risk of losing your entire investment
 Long hours and hard work
 Lower quality of life until the business gets established

 High levels of stress

 Complete responsibility
 Discouragement

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 Feeding the
Entrepreneurial Fire
 Entrepreneurs as heroes
 Entrepreneurial education
 Demographic and economic factors
 Shift to a service economy
 Technological advancements
 Outsourcing
 Independent lifestyles
 E-Commerce and the World Wide
Web
 International opportunities
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 The Cultural Diversity of
Entrepreneurship
 One characteristic of entrepreneurs
stands out:
Diversity!
 Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an
entrepreneur (although not everyone
should)

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 The Cultural Diversity of
Entrepreneurship
 Young entrepreneurs

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Youngest Microsoft Certified

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Young Pakistani Entrepreneurs

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 The Cultural Diversity of
Entrepreneurship
 Young entrepreneurs
 Women entrepreneurs

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 1. Fiza Farhan

•
The 28-year old entrepreneur is the co-founder of the Buksh Foundation.
Since 2009, Buksh Foundation has been operating in Pakistan. Buksh
foundation is a microfinance institution that takes clean energy projects to
the underprivileged and rural areas of Pakistan.
•

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• Sana and Safinaz

• Maria Umar

• Aqsa Ajmal

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Top Pakistani Entrepreneurs 2018

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 Entrepreneurial Activity by Gender

Source: 2008 Kauffman Index of Entrepreneurial Activity.

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 The Cultural Diversity of
Entrepreneurship
 Young entrepreneurs
 Women entrepreneurs
 Minority-owned enterprises

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 The Cultural Diversity of
Entrepreneurship
 Young entrepreneurs
 Women entrepreneurs
 Minority-owned enterprises
 Immigrant entrepreneurs
 Part-time entrepreneurs

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 The Cultural Diversity of
Entrepreneurship

 Home-based business owners

 Family business owners
 Copreneurs
 Corporate castoffs
 Corporate dropouts
 Retired Baby Boomers

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Small Business by Industry

Source: Small Business Administration, 2009.

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 Small Businesses...

 Make up 99.7% of all the 29.3 million

businesses in the U.S.
 Employ 50.2% of the nation’s private sector
workforce
 Pay 45% of total private payroll
 Create more jobs than big businesses
 SBA estimates they create 79% of all net new jobs
in the U.S.

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 Small Businesses...

 Are leaders in offering training and

advancement opportunities to workers
 Provide 67% of workers with their first jobs
 Produce 51% of the nation’s private GDP
 Account for 47% of business sales
 Key role in innovation:
Produce 13 times more patents per
employees than large companies

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 Putting Failure into Perspective
 About 54% of new companies fail within 4
years
 Entrepreneurs are not paralyzed by the
prospect of failure
 Failure – a natural part of the creative process
 Successful entrepreneurs learn to fail
intelligently

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 Avoiding the Pitfalls of
Small Business Failure

 Know your business in depth

 Prepare a business plan
 Manage financial resources
 Understand financial statements

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 Avoiding the Pitfalls of
Small Business Failure
 Learn to manage people
effectively
 Set your business apart from the
competition
 Maintain a positive attitude

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THANK YOU

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