SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP
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1 SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP David Stokes and Nick Wilson r> SOUTH-WESTERN CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States
2 CONTENTS Case Studies xi About the Authors xii Preface xiii Walk-through Tour xvi About the Website xviii PART 1 UNDERSTANDING SMALL BUSINESS AND ENTREPRENEURSHIP 1 1 Small Business in the Economy 3 Introduction What is a small business? Why bother with small businesses? The revival of the small enterprise Interpretations of the small business revival Entrepreneurial churn in the business population Transition and emerging economies Summary and activities Notes, references and further reading 28 2 Entrepreneurship, the Entrepreneur and the Owner-manager 30 Introduction Entrepreneurship and the entrepreneur: some definitions Motivations for starting a business The search for the entrepreneurial archetype Towards the entrepreneurial path The 'Model' entrepreneur Summary and activities Notes, references and further reading 63 3 The Small Business and Entrepreneurial Environment es Introduction A matter of life and death The birth of new businesses Sink or swim Hostile and benign environments 90
3 3.5 Critical survival factors Summary and activities Notes, references and further reading 101 ^ 4 Innovation and the Marketplace 103 Introduction Defining innovation Innovation in more detail Product innovation in small firms Innovation and the entrepreneurship dynamic Managing innovation - some issues The seven sources for innovative opportunity Innovating for the marketplace Who is the customer? Why will the customer buy from me? Summary and activities Notes, references and further reading Information and Help 139 Introduction Entrepreneurial information-gathering Market research for small firms Secondary data Primary data Help for small business The effects of government policy Summary and activities 160 / 5.8 Useful sources of information for entrepreneurs Notes, references and further reading 169 PART 2 CREATING THE ENTREPRENEURIAL SMALL BUSINESS Business Planning 175 Introduction The purpose of a business plan When to plan? Who can benefit? Why produce a plan? The format of a business plan Summary and activities Notes, references and further reading 213
4 7 Successful Small Business Strategies 215 Introduction Strategy and the small business New venture strategy Survival strategy Growth strategy A composite model of successful strategies Summary and activities Notes, references and further reading Start-ups and Franchises 251 Introduction The alternative routes to market entry The start-up What is franchising? The franchising market The pros and cons of franchising Why do small business founders choose business format franchising? But is it a small business? Summary Case studies and activities Notes, references and further reading Buying an Existing Business 275 Introduction The scope for buying an existing business Small business buyers Assets for sale Liabilities to be avoided Basis of valuation of an existing business Taxation aspects of a small business purchase For and against buying an existing business Summary and activities Notes, references and further reading Forming and Protecting a Business aoe Introduction Choice of business organization Limited company Sole trader Partnership Choosing the appropriate business form: sole trader vs. partnership vs. limited company 317
5 10.6 Co-operatives Intellectual property rights Summary and activities Notes, references and further reading 333 PART 3 MANAGING THE ENTREPRENEURIAL SMALL BUSINESS Management of People and Resources 339 Introduction Total management Premises Materials and equipment Insurance Business processes and information and communications technology Management of people Summary and activities Notes, references and further reading Marketing 365 Introduction Small business marketing issues Marketing defined Entrepreneurial marketing Word of mouth marketing methods The impact of the internet on entrepreneurial marketing Personal marketing communications Impersonal marketing communications Marketing channels Summary and activities Notes, references and further reading Money 402 Introduction Financial needs - the uses of funds Accessing finance Public initiatives in the UK Control of financial resources Managing finance Entrepreneurial finance - some issues Case studies and activities: part Financial analysis Summary and activities (part 2) Notes, references and further reading 445
6 14 Business Exits and Realizing Value 448 Introduction Business exits and closures What adds value to a business? Succession issues The family business Creating value for society Summary and activities Notes, references and further reading 467 Glossary of terms 469 Index 473
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