ENTREPRENEURSHIP, NEW VENTURES,

AND BUSINESS OWNERSHIP

Presented by: Odell Jueanville, MSc, EdD(Cand.)

This PowerPoint may contain

portions of the textbook used
for the course Business
Essentials by Ebert and
Griffin, (2019).
 BIBLE SCRIPTURE

• Proverbs 14:23: “In all toil there is profit, but mere

talk tends only to poverty” (ESV).

O. Jueanville
 IN-CLASS VIDEO

Please view the video on the following link:

http://youtube.com/watch?
v=92ZmzD70sOU&ab_channel=BusinessWales
%2FBusnesCymru

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 SMALL BUSINESS

• In Trinidad and Tobago, the Ministry of Labour And Small Enterprise

Development (2014) considers a small business to have 6-25
employees, less than $1.5 million in assets and less than $8 million in
sales turnover.
•
•
•
•
•
• 90% of all registered businesses in Trinidad and Tobago are either micro
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 STARTING AND OPERATING A NEW
BUSINESS

• How do you start a business?

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 STARTING AND OPERATING A NEW
BUSINESS

• The current technological age has made it much easier to start a business.
Someone can simply start a business via eBay or Amazon.
• Notwithstanding this, entrepreneurs must:
• Make the right start-up decisions
• Have a clear vision of why their business will succeed
• How to get into business?
• Buy an existing business or
• Build from the ground up?
• Know when to seek expert advice and
• Where to find sources of financing O. Jueanville
 FINANCING

• What are some local places that provides loans to small businesses?
• _______________
• _______________
• _______________
• _______________

To get financing from financial institutions and investors, the entrepreneur

must have in place a comprehensive, well-crafted __________ ________.
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 DISTINCTIVE COMPETENCIES

• The distinctive competencies of small business usually fall into three

areas:
1. The ability to identify new niches in established markets
2. The ability to identify new markets, and
3. The ability to move quickly to take advantage of new opportunities.
4.
What is a niche?
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 NICHE

• “This is a segment of a market that is not currently

being exploited” (Ebert & Griffin, 2019, pg 83).
•
• In other words, look for an area in the market which is
not currently being serviced and give it your focus.

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 IDENTIFYING NEW MARKETS

• Successful entrepreneurs can also discover whole new markets and excel
at it.
1. Transfer a product or service that is well established in one geographic
market to a second market e.g. taking the steel pan from Trinidad
and Tobago and have it thrive in sales within the United States
where it did not exist prior, thereby creating a new market.
2.
3. Entrepreneurs can create entire industries.

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 FIRST-MOVER ADVANTAGES

• The ability to move first in taking advantage of a new

opportunity which presents itself.
•
• Pg 83.

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 BUSINESS PLAN

• What is a Business Plan?

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 BUSINESS PLAN

• A Business Plan is where “the entrepreneur describes his or

her business strategy for the new venture and demonstrates
how it will be implemented” (Ebert & Griffin, 2019, pg 83).
•
• Within the Business Plan the entrepreneur is forced to
develop and document the business idea before investing
too much money and time in the new venture.
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 BUSINESS PLAN

• The Business Plan should answer these three questions:

1. What are the entrepreneur’s goals and objectives?
2. What strategies will be used to obtain them?
3. How will these strategies be implemented?
(Ebert & Griffin, 2019, pg 84).
1.

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 SALES FORECASTING

• Why is this important?

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 SALES FORECASTING

• To determine sales forecast, the entrepreneur must first research the

market and not simply indicate that we expect 50, 000 units to be
sold in the first year.
• Without the sales forecast it is difficult to determine:
• The required size of a manufacturing plant, store, or office.
• How much inventory to stock up
• How many employees to hire

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 FINANCIAL PLANNING

• The financial plan usually includes a cash budget, an income

statement, balance sheets, and a breakeven chart.

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 STARTING A BUSINESS –
BUYING AN EXISTING BUSINESS

• Buying an existing business – experts recommend buying an existing

business as the chances of survival are better. In re-buying a
successful business, you already have:
• Customers
• Generated profit
• Established relationships with lenders, suppliers, and other
stakeholders.
• Existing track record
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 STARTING A BUSINESS –
FRANCHISING

• A Franchise is an arrangement in which a buyer referred to as the

franchisee purchases the right to sell the good or service of the seller
referred to as the franchiser (Ebert & Griffin, 2019, pg 84).
• List four franchises which operate locally:
1. ________________ To become a franchisee, a business
will usually by the rights to operate
2. ________________ the business and still pay a
percentage of profits in royalties.
3. ________________ The right to open your own Mc
Donald’s can cost US$1million.
4. ________________
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 STARTING A BUSINESS –
FRANCHISING

• A Franchise is an arrangement in which a buyer referred to as the

franchisee purchases the right to sell the good or service of the seller
referred to as the franchiser (Ebert & Griffin, 2019, pg 84).
• List four franchises which operate locally:
1. KFC To become a franchisee, a business
will usually by the rights to operate
2. Pizza Hut the business and still pay a
percentage of profits in royalties.
3. Subway The right to open your own Mc
Donald’s can cost US$1million.
4. TGI Fridays
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 STARTING A BUSINESS –
STARTING FROM SCRATCH

• People start businesses from scratch because:

• The satisfaction that comes from planting an idea and growing it
into a healthy business.
• A new business doesn’t suffer the ill effects of a prior owner’s
errors.
• The entrepreneur is free to choose lenders, equipment, inventories,
locations, suppliers, and workers.
(Ebert & Griffin, 2019, pg 84).
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 STARTING A BUSINESS –
STARTING FROM SCRATCH

• “Success or failure depends on identifying a genuine opportunity, such as a product

for which many customers will pay well but which is currently unavailable. To find
openings, entrepreneurs must study markets and answer the following questions:
• Who and where are my customers?
• How much will those customers pay for my product?
• How much of my product can I expect to sell?
• Who are my competitors?
• Why will customers buy my product rather than the product of my competitors?”
(Ebert & Griffin, 2019, pg 85).
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 TRENDS IN SMALL BUSINESS START-UPS –
EMERGENCE OF E-COMMERCE

• What is E-Commerce?
• E-Commerce can simply be defined as buying and selling of products
electronically and usually over the internet.
• Examples of businesses which engage mainly in E-Commerce are?
• _______________
• _______________
• _______________
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GROWTH IN E-COMMERCE FROM 2005 THROUGH 2016

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 TRENDS IN SMALL BUSINESS START-UPS –
CROSSOVERS FROM BIG BUSINESS

• Within the world today, several businesses are being started by

persons who have experience working in large businesses and leave
their jobs to create ideas which they want to bring to fruition.

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 TRENDS IN SMALL BUSINESS START-UPS –
OTHER TRENDS
Reasons women give for
starting their business.
Other trends in small business start-ups include:
• Opportunities for Minorities and Women
• Global Opportunities
• Better Survival Rates compare to previous years

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 REASONS FOR FAILURE

Four general factors which contribute to failure of new businesses are:

1. Managerial incompetence or inexperience
2. Neglect
3. Weak control systems
4. Insufficient capital
(Ebert & Griffin, 2019, pg 90).

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 REASONS FOR SUCCESS

Four factors generally cited to explain the successes of small businesses

are:
1. Hard work, drive, and dedication
2. Market demand for the products or services being provided
3. Managerial competence
4. Luck
(Ebert & Griffin, 2019, pg 90).
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THREE TYPES OF BUSINESS
OWNERSHIP

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 SOLE PROPRIETORSHIPS

“The sole proprietorship is owned and usually operated by ___ person”

(Ebert & Griffin, 2019, pg 91).
•
●
Advantages ●
Disadvantages
●
Answer to no one but ●
Unlimited liability i.e.
themselves responsible for paying off all
debts.
●
Easy to form ●
Lack of continuity i.e. usually
ends at the death of the
owner.
●
Simplicity of legal setup ●
Dependent on the resources
of one person.
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 PARTNERSHIPS

“General Partnership is a business with ___ or more owners who share

in both the operation of the firm and the financial responsibility for its
debts” (Ebert & Griffin, 2019, pg 92).
●
Advantages ●
Disadvantages
●
Grow by adding new talent ●
Unlimited liability
and money
●
Limited legal requirements to ●
Lack of continuity when one
start-up partner dies or leaves. i.e. a
new partnership agreement
must be created.
Continue reading: Limited Partnership, Limited Partner, General (or Active) Partner.
●
Difficulty in transferring O. Jueanville
 COOPERATIVES

• “Cooperatives form of ownership in which a group of sole

proprietorships or partnerships agree to work together for common
benefits…Cooperatives combine the freedom of sole proprietorships
with the financial power of corporations”.
•
What is a corporation?

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 CORPORATION

The form of business is used by almost all large businesses.

“In 1819, the U.S. Supreme Court defined a corporation as “an artificial being,
invisible, intangible, and existing only in contemplation of the law.” The court
defined the corporation as a legal person. Corporations may, therefore, perform
the following activities: How does this differ from the
others?
ü Sue and be sued
üBuy, hold, and sell property What are examples of local
corporations?
üMake and sell products
üCommit crimes and be tried and punished for them”
(Ebert & Griffin, 2019, pg 94).
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 CORPORATION

●
Advantages ●
Disadvantages
●
Limited liability i.e if ●
A potential investor (Ebert & Griffin, 2019), pg 94 -95.
the business fails the can approach a
assets of the shareholder to
corporation may be purchase his or her
seized to repay debtors shares against the will
but not the investors of the manager.
personal assets.
●
Continuity i.e. shares ●
Start-up cost and
can be sold of passed complex legal
on to heirs. It does not requirements.
end at the death of an
owner.
Continue Reading: Types of Corporations.
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 MANAGING A CORPORATION

• For a corporation to be effectively managed, persons need to be aware

of corporate governance which refers to the “roles of shareholders,
directors, and other managers in corporate decision making and
accountability”.

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 SHAREHOLDERS

• Shareholders also referred to as stockholders are investors who

purchased shares of stock in a corporation. Profits generated from
the corporation are distributed to the shareholders in the form of
dividends.
•
• The shareholders are also responsible for the selection of the Board of
Directors.

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 BOARDS OF DIRECTORS

• The board of directors is the governing body of the corporation. The

board of directors reports to the shareholders and are responsible for
all corporate actions of the corporation.

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 OFFICERS

• Although the board of directors are the governing body of the

business, they do not oversee the day to day activities of the
business. The board of directors hires a team of top managers who
would manage the day to day activities of the business. The head of
this team may be referred to as the President or Chief Executive
Officer.

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 READINGS

• Please read this chapter in its entirety for your edification and as you
prepare for quiz.

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 REFERENCES

• Ebert, R., & Griffin, R. (2017). Business Essentials (12th ed.).

Pearson.

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