小企业管理第1讲.pptVIP

Small Business ManagementProfessor Hornaday Lecture 1 Entrepreneurship - Innovative Economic Leadership Small Business - Self-employed Management Competitive Advantages of Small Business They Offer Superior Quality Service such as: 1. Flexibility 2. Short Decision Time 3. Short Production Runs 4. Small Inventory Holdings 5. Personal Contact with Customers Competitive Advantages of Small Business As suppliers to large firms, small businesses can offer low prices because they have low overhead costs. Small retail firms cannot compete with larger retail chain stores on price, but they offer consumers superior service. Big Business and Small Business Big Business Salaried Top Level Managers are not Owners; Personal Assets not at Risk Functional and Special Staff Price Makers Buy Sell Oligopoly or Monopoly Small Business Owner is Manager; Personal Assets at Risk; Owner Income from Profits Generalist; Little Staff Expertise Price Takers Buy Sell Competitive Markets - Supply and Demand The Marketing Niche Small Firms Need a Niche Characteristics of Viable Niche Identifiable Market Segment Satisfy the Segment at a Profit Defend against ALL Competitors Importance of U.S. Small Firms Contribute about 51% of U.S. GDP 13% of All Workers Self-Employed 47% of all Sales in the U.S. 52% of the Private Work force Create about 76% of New Jobs Major Source of Innovation Flexibility to Meet Short Term Fluctuations Economic Shock Absorbers Small Firm Employment in U.S. Industry All Agriculture, Forestry, Fishing Mining Construction Manufacturing Transportation Wholesale Trade Retails Trade Finance, Insurance, Realtors Service % in Small Firms 50% 77% 45% 76% 26% 45% 79% 74% 59% 45% U.S. Business Population Number of U.S. Firms by Size The Average U.S. Millionaire A 57-Year-Old Married Man with 3 Children Self-Employed: Farmer, Service Firm or Construction Median Household Income of $131,000 Mean Household Net Worth of $3.7 Million Owns a Home Valued at $