CHAPTER 1: SMALL BUSINESS: ITS OPPORTUNITIES AND REWARDS
Chapter Summary
This chapters overviews the role of entrepreneurship in the United States and discusses the
impact that small businesses have on the community as a whole. Basic definitions of
entrepreneurship, small business and the main entry methods are provided. The reason
entrepreneurs chose to go into business and the actions they must accomplish to be successful
are also included. The BRIE model is introduced and described in this chapter.
Learning Objectives
After studying this chapter, the student should be able to:
1. Describe the scope of small business in the United States.
2. Understand the four types of firm level growth.
3. Differentiate between small businesses and high-growth ventures.
4. Explore the rewards entrepreneurs can achieve through their businesses
5. Dispel the key myths about small businesses
6. Identify actions key to becoming a small business owner
7. Recognize how small business is important to our economy and your community
Focus on Small Business:
Paul Scheiter, Hedgehog Leatherworks
Paul Scheiter’s entrepreneurship started with trying to find a solution to a problem he had: the
plastic sheath of his expensive knife just wasn’t working well. His solution sparked his interest
,in entrepreneurship.
Focus on Small Business Discussion Questions
1. Do you think Paul was originally thinking about starting a business when he made
his first sheath?
Probably not immediately, however the characteristics that lead him into
entrepreneurship possibly caused him to realize the opportunity sooner than many
others would
2. What drove Paul to start a business?
Most likely he assumed that if he was unhappy with the knife sheath choices available,
he was certain that others would be so, too.
, 3. How important were contacts and connections to the growth of Paul’s business?
While Paul may have made it anyway, his contacts made the road easier to travel and
with fewer mistakes. If he had to learn leatherwork by himself, he could have been
easily discouraged and ultimately given up the idea. The courses he took and mentors
he met along the ways helped open doors and eliminate problems. Probably the most
telling factor that the help along the way was beneficial is that Paul now reciprocates
and assists other potential entrepreneurs.
4. Do you think Paul would credit his planful approach with the success of his
business? What is your opinion?
Again, the fact that he now teaches and mentors at Saint Louis University seems to
indicate he found systematic learning about entrepreneurship paid off.
Extended Chapter Outline
Note: Key terms are in boldface.
Teaching tool Internet application
International application Group activity
0.1 You can start a small business and there are ways to be a success. Paul Scheiter
showed this:
0.1.1 Believing that you can do this or self-efficacy
0.1.2 Planning + Action = Success.
0.1.3 Help helps.
0.1.4 Do well. Do good.
0.2 Entrepreneurial Small Business want to help you reach your dream of becoming an
entrepreneur.
, Skill Module 1.1: Small Business Online Scavenger Hunt
This module allows students to explore a number of entrepreneurial Websites. The
answers (as of time of print) to the question are below.
Objective 1: Understand the scope of small business in the United States
1.1. According to the U.S. Small Business Administration (SBA) there were 14.7 million
entrepreneurs in the United States.
1.1.1.Entrepreneurs can be found in almost every occupation.
1.1.2. Some entrepreneur careers require college and even graduate degrees, while
others have very basic entry requirements.
1.1.3. Your occupation as an entrepreneur depends on the types of goods or services
you and your firm produce.
1.2. True entrepreneurial businesses are characterized by novelty; small businesses are
imitative.
1.2.1.In this text, anyone who owns a business is an entrepreneur.
1.2.1.1. A small business owner is an entrepreneur.
1.2.1.2. Someone who is self-employed is an entrepreneur.
1.2.1.3. There are several ways in which people become entrepreneurs.
1.2.1.3.1. Founders are people who start a new business.
1.2.1.3.2. Buyers purchase businesses.
1.2.1.3.3. Others may own a franchise.
1.2.1.3.4. Some may be heirs of a family business.
1.2.1.3.5. After entry, most entrepreneurs become owner-
managers.
Chapter Summary
This chapters overviews the role of entrepreneurship in the United States and discusses the
impact that small businesses have on the community as a whole. Basic definitions of
entrepreneurship, small business and the main entry methods are provided. The reason
entrepreneurs chose to go into business and the actions they must accomplish to be successful
are also included. The BRIE model is introduced and described in this chapter.
Learning Objectives
After studying this chapter, the student should be able to:
1. Describe the scope of small business in the United States.
2. Understand the four types of firm level growth.
3. Differentiate between small businesses and high-growth ventures.
4. Explore the rewards entrepreneurs can achieve through their businesses
5. Dispel the key myths about small businesses
6. Identify actions key to becoming a small business owner
7. Recognize how small business is important to our economy and your community
Focus on Small Business:
Paul Scheiter, Hedgehog Leatherworks
Paul Scheiter’s entrepreneurship started with trying to find a solution to a problem he had: the
plastic sheath of his expensive knife just wasn’t working well. His solution sparked his interest
,in entrepreneurship.
Focus on Small Business Discussion Questions
1. Do you think Paul was originally thinking about starting a business when he made
his first sheath?
Probably not immediately, however the characteristics that lead him into
entrepreneurship possibly caused him to realize the opportunity sooner than many
others would
2. What drove Paul to start a business?
Most likely he assumed that if he was unhappy with the knife sheath choices available,
he was certain that others would be so, too.
, 3. How important were contacts and connections to the growth of Paul’s business?
While Paul may have made it anyway, his contacts made the road easier to travel and
with fewer mistakes. If he had to learn leatherwork by himself, he could have been
easily discouraged and ultimately given up the idea. The courses he took and mentors
he met along the ways helped open doors and eliminate problems. Probably the most
telling factor that the help along the way was beneficial is that Paul now reciprocates
and assists other potential entrepreneurs.
4. Do you think Paul would credit his planful approach with the success of his
business? What is your opinion?
Again, the fact that he now teaches and mentors at Saint Louis University seems to
indicate he found systematic learning about entrepreneurship paid off.
Extended Chapter Outline
Note: Key terms are in boldface.
Teaching tool Internet application
International application Group activity
0.1 You can start a small business and there are ways to be a success. Paul Scheiter
showed this:
0.1.1 Believing that you can do this or self-efficacy
0.1.2 Planning + Action = Success.
0.1.3 Help helps.
0.1.4 Do well. Do good.
0.2 Entrepreneurial Small Business want to help you reach your dream of becoming an
entrepreneur.
, Skill Module 1.1: Small Business Online Scavenger Hunt
This module allows students to explore a number of entrepreneurial Websites. The
answers (as of time of print) to the question are below.
Objective 1: Understand the scope of small business in the United States
1.1. According to the U.S. Small Business Administration (SBA) there were 14.7 million
entrepreneurs in the United States.
1.1.1.Entrepreneurs can be found in almost every occupation.
1.1.2. Some entrepreneur careers require college and even graduate degrees, while
others have very basic entry requirements.
1.1.3. Your occupation as an entrepreneur depends on the types of goods or services
you and your firm produce.
1.2. True entrepreneurial businesses are characterized by novelty; small businesses are
imitative.
1.2.1.In this text, anyone who owns a business is an entrepreneur.
1.2.1.1. A small business owner is an entrepreneur.
1.2.1.2. Someone who is self-employed is an entrepreneur.
1.2.1.3. There are several ways in which people become entrepreneurs.
1.2.1.3.1. Founders are people who start a new business.
1.2.1.3.2. Buyers purchase businesses.
1.2.1.3.3. Others may own a franchise.
1.2.1.3.4. Some may be heirs of a family business.
1.2.1.3.5. After entry, most entrepreneurs become owner-
managers.
