Becoming an Entrepreneur: How to Start a Small Business
2004; Globeedu Group; Volume: 21; Issue: 3 Linguagem: Inglês
ISSN
2277-5846
Autores Tópico(s)Entrepreneurship Studies and Influences
ResumoDuring the previous two decades, the United States has witnessed a tremendous increase in the number of new business start-ups. The growth is attributed to changes in the traditional workplace, improved technology, and a strong US economy. When contemplating whether to start a small business an entrepreneur should consider both personal goals and the reality of the business succeeding in the marketplace. To determine the viability of the business, it is necessary to conduct research in the areas of product demand and potential market size. This paper provides guidelines for the personal and business evaluation as well as steps to start the business. Using these tools, the entrepreneur will increase the chances of the business evolving into a personally gratifying and financially profitable enterprise. For the past two decades, the United States has experienced rapid growth in the number of new business start-ups. Changes in the traditional corporate environment and expansion of the technology industry provided the catalyst for many prospective entrepreneurs to forgo the security of consistent employment and go into business for themselves. While opening a business is a popular endeavor, starting a small business is a serious financial and mental undertaking, worthy of considerable thought and evaluation. In order to maximize the possibility of success, it is necessary to conduct research and develop a business plan. This preparation will improve chances of the business evolving into a personally gratifying and financially profitable enterprise. Entrepreneurship in the United States According to the Small Business Administration (SBA), in 1997, the US had 885,416 new employer firms open their doors for the first time. This was the highest number ever and a 5.1% increase over 1996. The majority of start-up businesses are small businesses. The SBA defines a small business as an organization with fewer than 500 employees and sales, which do not exceed $50 million. The number of small businesses in the US has increased over 60% since 1982. As of 1997, the SBA reports that there are approximately 23.7 million non-farm businesses and 99% are small businesses. Small businesses are a driving force in the nation's economy and provide most of the new jobs. Evolution of Entrepreneurship. The growth of new business start-ups is related to a shift in how entrepreneurs are perceived. Throughout the 1940's-1970's, entrepreneurs were not generally respected members of the business community. The assumption was that entrepreneurs were not able to assimilate into the typical workplace, so to earn a living they were forced to open their own business. While successful entrepreneurs like Henry Kaiser of Kaiser Steel and Bill Hewlett and Dave Packard were inventing useful products, Americans did not highlight their accomplishments (Richman, 1997). During the 1980's, public perception of entrepreneurs began to change. Especially when ventures such as Apple Computer, Compaq Computers, and Turner Broadcasting propelled entrepreneurship to cult-like status. According to Richman ( 1997), the public now perceives entrepreneurs as mainstream and not outcasts. Entrepreneurism is now associated with innovation and honor. Entrepreneur is a derivative of the French word entreprendre, which means to undertake. Although the term entrepreneurship has been used in a business context for over 200 years, there is disagreement about the specific definition of entrepreneur and what it means to be entrepreneurial (Morris, Lewis, Sexton, 1994). The tendency has been to associate entrepreneurship with small business start-up and management. Recently, corporations have altered the original definition of entrepreneur. The new meaning of entrepreneurial now covers individual employees or teams at companies of any size. The entrepreneurial label implies that they are modern and innovative. Causes of the increase in new business start-ups. …
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