Small Business Management
Launching & Growing Entrepreneurial Ventures
20th Edition Justin G. Longenecker, J. William Petty, Leslie E. Palich, Frank Hoy
Table of Contents:-
Chapter 1. The Entrepreneurial Life.
Chapter 2. Integrity, Ethics and, Social Entrepreneurship.
Chapter 3. Starting a Small Business.
Chapter 4. Franchising and Buyouts.
Chapter 5. The Family Business.
Chapter 6. Visualizing the Dream: The Business Model and Business Plan
Chapter 7. The Marketing Plan.
Chapter 8. The Organizational Plan: Teams, Legal Structures, Alliances, and Directors.
Chapter 9. The Location Plan.
Chapter 10. Understanding a Firm's Financial Statements.
Chapter 11. Forecasting Financial Requirements.
Chapter 12. A Firm's Sources of Financing.
Chapter 13. Planning for the Harvest.
Chapter 14. Building Customer Relationships.
Chapter 15. Product and Supply Chain Management.
Chapter 16. Pricing and Credit Decisions.
Chapter 17. Promotional Planning.
,Chapter 18. Global Opportunities for Small Business.
Chapter 19. Professional Management and the Small Business.
Chapter 20. Managing Human Resources.
Chapter 21. Managing Operations.
Chapter 22. Managing the Firm's Assets.
Chapter 23. Managing Risk in the Small Business.
,1|Page
CHAPTER 1: THE ENTREPRENEURIAL LIFE
PURPOSE AND PERSPECTIVE OF THE CHAPTER
THE PURPOSE OF THIS CHAPTER IS TO PROVIDE AN OVERALL VIEW OF OWNING A SMALL BUSINESS AND
THINKING LIKE AN ENTREPRENEUR.
CENGAGE SUPPLEMENTS
THE FOLLOWING PRODUCT-LEVEL SUPPLEMENTS PROVIDE ADDITIONAL INFORMATION THAT MAY HELP YOU IN
PREPARING YOUR COURSE. THEY ARE AVAILABLE IN THE INSTRUCTOR RESOURCE CENTER.
INSTRUCTOR’S MANUAL
POWERPOINT SLIDES
TEST BANK
TRANSITION GUIDE THAT ILLUSTRATES CHANGES BETWEEN THE PREVIOUS AND CURRENT EDITIONS
CHAPTER OBJECTIVES
THE FOLLOWING OBJECTIVES ARE ADDRESSED IN THIS CHAPTER:
1-1 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND ENTREPRENEURSHIP IN OUR SOCIETY.
1-2 DESCRIBE WHAT IT MEANS TO BE A SMALL ENTREPRENEURIAL FIRM.
1-3 IDENTIFY HOW SMALL BUSINESSES CAN COMPETE AGAINST THE GIANTS.
1-4 OUTLINE WHAT MIGHT MOTIVATE YOU TO BE A SMALL BUSINESS OWNER WITH ALL ITS RISKS AND
UNCERTAINTIES.
1-5 DESCRIBE WAYS TO BUILD A SUCCESSFUL BUSINESS AS A PART OF YOUR LIFE LEGACY.
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
FOR ADDITIONAL GUIDANCE REFER TO THE TEACHING ONLINE GUIDE.
CHAPTER PPT SLIDE ACTIVITY/ASSESSMENT DURATION
OBJECTIVE
2 ICEBREAKER
1-1 6–7 KNOWLEDGE CHECK < 5 MIN.
1-2 17–18 DISCUSSION ACTIVITY 1 5–10 MIN.
1-3 26–27 DISCUSSION ACTIVITY 2 5–10 MIN.
1-4 38 POLLING ACTIVITY 1 < 5 MIN.
1-4 39 POLLING ACTIVITY 2 < 5 MIN.
1-5 42–43 DISCUSSION ACTIVITY 3 5–10 MIN.
WHAT'S NEW IN THIS CHAPTER
THE FOLLOWING ELEMENTS ARE IMPROVEMENTS IN THIS CHAPTER FROM THE PREVIOUS EDITION:
, 2|Page
REVISED CONTENT TO HELP STUDENTS BETTER UNDERSTAND THEIR MOTIVATIONS FOR STARTING A
BUSINESS AND TO AVOID DISTORTED CONCEPTS ABOUT WHAT IS REQUIRED FOR THEM TO BE EFFECTIVE
BUSINESS OWNERS.
UPDATED THE LIVING THE DREAM FEATURES, WHICH CAPTURE ENTREPRENEURS IN ACTION AS THEY
FACE SMALL BUSINESS AND ENTREPRENEURSHIP CHALLENGES. CHAPTER 1 INCLUDES FOUR OF THESE
FEATURE PROFILES.
INCORPORATED A “SPOTLIGHT ON SMALL BUSINESS” VIGNETTE AT THE START OF THE CHAPTER TO
SHOWCASE AN ENTREPRENEUR’S UNIQUE INSIGHTS INTO HOW TO START, RUN, AND GROW A BUSINESS.
CHAPTER 1’S SPOTLIGHT IS ENERGY SOLUTIONS OF TEXAS.
REPLACED THE PREVIOUS EDITION CASE WITH A NEW CASE, THE LIP BAR, AS AN EXAMPLE OF AN
ENTREPRENEUR PURSUING AN OPPORTUNITY AROUND THEM AND BEING ADAPTABLE.
ADDED DISCUSSION QUESTIONS TO THE END-OF-CHAPTER CONTENT.
ADDED A YOU MAKE THE CALL FEATURE TO THE END OF CHAPTER THAT PRESENTS VARIOUS SITUATIONS
AND THOUGHT-PROVOKING QUESTIONS.
ADDED EXPERIENTIAL EXERCISES TO THE END OF CHAPTER.
[RETURN TO TOP]
CHAPTER OUTLINE
IN THE OUTLINE BELOW, EACH ELEMENT INCLUDES REFERENCES (IN PARENTHESES) TO RELATED CONTENT.
“CH.##” REFERS TO THE CHAPTER OBJECTIVE; “PPT SLIDE #” REFERS TO THE SLIDE NUMBER IN THE
POWERPOINT DECK FOR THIS CHAPTER (PROVIDED IN THE POWERPOINTS SECTION OF THE INSTRUCTOR
RESOURCE CENTER). INTRODUCE THE CHAPTER AND USE THE ICE BREAKER IN THE PPT IF DESIRED, AND IF ONE IS
PROVIDED FOR THIS CHAPTER. REVIEW LEARNING OBJECTIVES FOR CHAPTER 1. (PPT SLIDES 1–3).
I. 1-1 SMALL SIZE, BIG SIGNIFICANCE (LO 1-1, PPT SLIDES 4–7)
a. OWNING A BUSINESS IS A NOBLE PROFESSION—ESPECIALLY IF IT’S DONE WELL.
b. THE RICHEST REWARDS OF OWNING A SMALL BUSINESS COME FROM OFFERING GOODS OR
SERVICES THAT IMPROVE THE LIVES OF OTHERS AND DEVELOPING AN ORGANIZATIONAL
CULTURE THAT SUPPORTS EMPLOYEES.
c. U.S. SMALL BUSINESS ADMINISTRATION REPORTS THE FOLLOWING:
i. THERE ARE 30.2 MILLION BUSINESSES IN THE UNITED STATES WITH FEWER THAN 500
EMPLOYEES. SMALL COMPANIES ACCOUNT FOR 99.7% OF ALL BUSINESSES; 89% HAVE
FEWER THAN 20 EMPLOYEES.
ii. 11.7 MILLION WOMEN-OWNED BUSINESSES REPRESENT 36% OF ALL SMALL
BUSINESSES.
iii. 9.2 MILLION MINORITY-OWNED SMALL BUSINESSES ACCOUNT FOR 29% OF ALL SMALL
BUSINESSES.
iv. 59 MILLION PEOPLE WORK IN SMALL BUSINESSES, REPRESENTING 47% OF ALL
EMPLOYEES AND 42% OF ALL SALARIES PAID TO EMPLOYEES.
v. MANY SMALL COMPANIES HAVE GONE GLOBAL, REPRESENTING 97% OF ALL
EXPORTERS.
vi. TWO-THIRDS OF ALL SMALL BUSINESSES SURVIVE FOR AT LEAST TWO YEARS, WHILE
AROUND 33% SURVIVE OVER 10 YEARS. 50% PERCENT OF THE FAILURES ARE DUE TO
Launching & Growing Entrepreneurial Ventures
20th Edition Justin G. Longenecker, J. William Petty, Leslie E. Palich, Frank Hoy
Table of Contents:-
Chapter 1. The Entrepreneurial Life.
Chapter 2. Integrity, Ethics and, Social Entrepreneurship.
Chapter 3. Starting a Small Business.
Chapter 4. Franchising and Buyouts.
Chapter 5. The Family Business.
Chapter 6. Visualizing the Dream: The Business Model and Business Plan
Chapter 7. The Marketing Plan.
Chapter 8. The Organizational Plan: Teams, Legal Structures, Alliances, and Directors.
Chapter 9. The Location Plan.
Chapter 10. Understanding a Firm's Financial Statements.
Chapter 11. Forecasting Financial Requirements.
Chapter 12. A Firm's Sources of Financing.
Chapter 13. Planning for the Harvest.
Chapter 14. Building Customer Relationships.
Chapter 15. Product and Supply Chain Management.
Chapter 16. Pricing and Credit Decisions.
Chapter 17. Promotional Planning.
,Chapter 18. Global Opportunities for Small Business.
Chapter 19. Professional Management and the Small Business.
Chapter 20. Managing Human Resources.
Chapter 21. Managing Operations.
Chapter 22. Managing the Firm's Assets.
Chapter 23. Managing Risk in the Small Business.
,1|Page
CHAPTER 1: THE ENTREPRENEURIAL LIFE
PURPOSE AND PERSPECTIVE OF THE CHAPTER
THE PURPOSE OF THIS CHAPTER IS TO PROVIDE AN OVERALL VIEW OF OWNING A SMALL BUSINESS AND
THINKING LIKE AN ENTREPRENEUR.
CENGAGE SUPPLEMENTS
THE FOLLOWING PRODUCT-LEVEL SUPPLEMENTS PROVIDE ADDITIONAL INFORMATION THAT MAY HELP YOU IN
PREPARING YOUR COURSE. THEY ARE AVAILABLE IN THE INSTRUCTOR RESOURCE CENTER.
INSTRUCTOR’S MANUAL
POWERPOINT SLIDES
TEST BANK
TRANSITION GUIDE THAT ILLUSTRATES CHANGES BETWEEN THE PREVIOUS AND CURRENT EDITIONS
CHAPTER OBJECTIVES
THE FOLLOWING OBJECTIVES ARE ADDRESSED IN THIS CHAPTER:
1-1 EXPLAIN THE IMPORTANCE OF SMALL BUSINESSES AND ENTREPRENEURSHIP IN OUR SOCIETY.
1-2 DESCRIBE WHAT IT MEANS TO BE A SMALL ENTREPRENEURIAL FIRM.
1-3 IDENTIFY HOW SMALL BUSINESSES CAN COMPETE AGAINST THE GIANTS.
1-4 OUTLINE WHAT MIGHT MOTIVATE YOU TO BE A SMALL BUSINESS OWNER WITH ALL ITS RISKS AND
UNCERTAINTIES.
1-5 DESCRIBE WAYS TO BUILD A SUCCESSFUL BUSINESS AS A PART OF YOUR LIFE LEGACY.
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
FOR ADDITIONAL GUIDANCE REFER TO THE TEACHING ONLINE GUIDE.
CHAPTER PPT SLIDE ACTIVITY/ASSESSMENT DURATION
OBJECTIVE
2 ICEBREAKER
1-1 6–7 KNOWLEDGE CHECK < 5 MIN.
1-2 17–18 DISCUSSION ACTIVITY 1 5–10 MIN.
1-3 26–27 DISCUSSION ACTIVITY 2 5–10 MIN.
1-4 38 POLLING ACTIVITY 1 < 5 MIN.
1-4 39 POLLING ACTIVITY 2 < 5 MIN.
1-5 42–43 DISCUSSION ACTIVITY 3 5–10 MIN.
WHAT'S NEW IN THIS CHAPTER
THE FOLLOWING ELEMENTS ARE IMPROVEMENTS IN THIS CHAPTER FROM THE PREVIOUS EDITION:
, 2|Page
REVISED CONTENT TO HELP STUDENTS BETTER UNDERSTAND THEIR MOTIVATIONS FOR STARTING A
BUSINESS AND TO AVOID DISTORTED CONCEPTS ABOUT WHAT IS REQUIRED FOR THEM TO BE EFFECTIVE
BUSINESS OWNERS.
UPDATED THE LIVING THE DREAM FEATURES, WHICH CAPTURE ENTREPRENEURS IN ACTION AS THEY
FACE SMALL BUSINESS AND ENTREPRENEURSHIP CHALLENGES. CHAPTER 1 INCLUDES FOUR OF THESE
FEATURE PROFILES.
INCORPORATED A “SPOTLIGHT ON SMALL BUSINESS” VIGNETTE AT THE START OF THE CHAPTER TO
SHOWCASE AN ENTREPRENEUR’S UNIQUE INSIGHTS INTO HOW TO START, RUN, AND GROW A BUSINESS.
CHAPTER 1’S SPOTLIGHT IS ENERGY SOLUTIONS OF TEXAS.
REPLACED THE PREVIOUS EDITION CASE WITH A NEW CASE, THE LIP BAR, AS AN EXAMPLE OF AN
ENTREPRENEUR PURSUING AN OPPORTUNITY AROUND THEM AND BEING ADAPTABLE.
ADDED DISCUSSION QUESTIONS TO THE END-OF-CHAPTER CONTENT.
ADDED A YOU MAKE THE CALL FEATURE TO THE END OF CHAPTER THAT PRESENTS VARIOUS SITUATIONS
AND THOUGHT-PROVOKING QUESTIONS.
ADDED EXPERIENTIAL EXERCISES TO THE END OF CHAPTER.
[RETURN TO TOP]
CHAPTER OUTLINE
IN THE OUTLINE BELOW, EACH ELEMENT INCLUDES REFERENCES (IN PARENTHESES) TO RELATED CONTENT.
“CH.##” REFERS TO THE CHAPTER OBJECTIVE; “PPT SLIDE #” REFERS TO THE SLIDE NUMBER IN THE
POWERPOINT DECK FOR THIS CHAPTER (PROVIDED IN THE POWERPOINTS SECTION OF THE INSTRUCTOR
RESOURCE CENTER). INTRODUCE THE CHAPTER AND USE THE ICE BREAKER IN THE PPT IF DESIRED, AND IF ONE IS
PROVIDED FOR THIS CHAPTER. REVIEW LEARNING OBJECTIVES FOR CHAPTER 1. (PPT SLIDES 1–3).
I. 1-1 SMALL SIZE, BIG SIGNIFICANCE (LO 1-1, PPT SLIDES 4–7)
a. OWNING A BUSINESS IS A NOBLE PROFESSION—ESPECIALLY IF IT’S DONE WELL.
b. THE RICHEST REWARDS OF OWNING A SMALL BUSINESS COME FROM OFFERING GOODS OR
SERVICES THAT IMPROVE THE LIVES OF OTHERS AND DEVELOPING AN ORGANIZATIONAL
CULTURE THAT SUPPORTS EMPLOYEES.
c. U.S. SMALL BUSINESS ADMINISTRATION REPORTS THE FOLLOWING:
i. THERE ARE 30.2 MILLION BUSINESSES IN THE UNITED STATES WITH FEWER THAN 500
EMPLOYEES. SMALL COMPANIES ACCOUNT FOR 99.7% OF ALL BUSINESSES; 89% HAVE
FEWER THAN 20 EMPLOYEES.
ii. 11.7 MILLION WOMEN-OWNED BUSINESSES REPRESENT 36% OF ALL SMALL
BUSINESSES.
iii. 9.2 MILLION MINORITY-OWNED SMALL BUSINESSES ACCOUNT FOR 29% OF ALL SMALL
BUSINESSES.
iv. 59 MILLION PEOPLE WORK IN SMALL BUSINESSES, REPRESENTING 47% OF ALL
EMPLOYEES AND 42% OF ALL SALARIES PAID TO EMPLOYEES.
v. MANY SMALL COMPANIES HAVE GONE GLOBAL, REPRESENTING 97% OF ALL
EXPORTERS.
vi. TWO-THIRDS OF ALL SMALL BUSINESSES SURVIVE FOR AT LEAST TWO YEARS, WHILE
AROUND 33% SURVIVE OVER 10 YEARS. 50% PERCENT OF THE FAILURES ARE DUE TO
