Presentations & Curriculum prepared by:
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Allen Kitchel
Assistant Professor
Business & Marketing Teacher Education
University of Idaho
akitchel@uidaho.edu
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Entrepreneurship Units & Business Plan projects.
◦ Business Plans typically include: an executive summary, a
marketing plan, a management plan, a financial plan, and a
strategic plan.
◦ Advocating a financial planning unit addressing the accounting
system.
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Thesis
◦ Accounting is crucial to the success of any entrepreneurial
venture or business project.
◦ Entrepreneurs with an understanding of the accounting cycle
and double-entry accounting are advantaged.
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Role of small business / entrepreneur
Considerations for Entrepreneurship
Education.
Review provided materials and walk through
the accounting cycle.
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Accounting in Entrepreneurship?
◦ Should accounting be an element of entrepreneurship
education? Why or why not?
◦ What do entrepreneurs need to know about
accounting, if anything?
◦ What are ways to introduce accounting in
entrepreneurship education?
◦ Conversely, what can entrepreneurship education do
for accounting education?
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Merriam-Webster Dictionary
◦ Identifies it as a noun – defines as entrepreneur.
 “one who organizes, manages, and assumes the risks of
a business or enterprise”
 http://www.merriamwebster.com/dictionary/entrepreneurship
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Investerwords.com (www.investerwords.com)
◦ “The assumption of risk and responsibility in
designing and implementing a business strategy or
starting a business.”
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Small firms < 500 employees
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99.7% of employer firms
Employ ~ half of private sector employees
45% of total U.S. private payroll
60-80% of net new jobs over past decade
2004 - accounted for ALL of the net new jobs
Hire 40% of high tech workers
Make up 97% of U.S exporters
28.9% (2006), 28.6% (2004) of U.S. export value
Produce 13 times more patents per employee than
large firms
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Created 92% net new jobs
< 20 employees - 85% net new jobs
Over 1 million jobs in 12 of the 14 yrs
Over 1.5 million in 6 of the 14 years
550,000 (90-91) and 850,000 (01-02)
<20 more jobs than either medium (20-500) or
large (>500)
<20 more jobs than medium and large
combined in 11 of the 14 years.
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Eliminated more jobs then created in 5 of the
14 years
2001-2002 eliminated 2.2 million jobs
2002-2003 eliminated almost 1 million jobs
April 2009 unemployment rate hits 8.9%
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Small businesses are critical, e.g.,2004-2005
(latest) data shows
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PA – SB created ALL NET NEW Jobs (26,251): Large
firms (500+) net loss of 40,994
OH - SB created ALL NET NEW Jobs (3,620): Large
firms (500+) net loss of 964
Previous years of 2003-2004, & 2002-2003
differences even more profound.
Nonemployer Statistics: 2005 – 20.4 million
businesses.
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Make up 78% of all U.S. Business, increase of 4.4%
from 2004
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2/3 of small business owners
◦ Will consult with accountant before making a critical
business decision
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Subject for which advice most frequently
sought
 Accounting
 Book Keeping
 Taxes
 Followed by legal questions and then computer-related
areas.
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SBDC Directors, Entrepreneurship Faculty,
Accounting Dept. Chairs
Five functional areas – in order of importance
1.
2.
3.
4.
5.
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Marketing
Management
Accounting
Strategic Planning
Computer Systems
Continued on next slide…
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Within Accounting/Finance, what are the
greatest needs?
1.
2.
3.
4.
5.
6.
7.
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Forecasting cash flows & budgeting
Tax planning
Reading financial statements
Record keeping/Book keeping
Cost Control
Meeting regulatory demands
Payroll accounting
Least: Selecting Acct. Software, going public,
depreciation methods, dealing with simple
equity/debt instruments.
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Integrated course / program
Authors emphasize
◦ Entrepreneurship - central theme for core disciplines
◦ Benefit - see “whole picture” & interrelationship.
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Business plan
◦ Creation requires skills in the core disciplines:
 Mgmt, mrkt, finance, accounting, and international bus.
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Primary learning outcomes
1. Mastery of core concepts from each discipline
2. Understanding/appreciation - core concepts relate.
3. Team work, business plan, launch a small business,
personal development (creativity, critical thinking,
planning, etc.)
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Business Administration Core
◦ Skills and knowledge identified as common across the
business clusters of
 Business Management and Administration
 Finance
 Marketing.
◦ 13 instructional areas (see handout)
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Entrepreneurship & Finance Instructional Areas
◦ See handout
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MIT Researcher
◦ Research in late ‘70s in neighborhood &
community development.
◦ Paved the way of many of today’s entrepreneurship
scholars.
◦ Research showed new/small business create a large
% of new jobs.
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David Birch Interview (2004)
◦ Selling, leadership and product creation is what
counts.
◦ “Is there anything less relevant to entrepreneurship
than accounting?”
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Accounting in Entrepreneurship?
◦ Should accounting be an element of entrepreneurship
education? Why or why not?
◦ What do entrepreneurs need to know about
accounting, if anything?
◦ What are ways to introduce it in entrepreneurship
education?
◦ Conversely, what can entrepreneurship education do
for accounting education?
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End of Introductory Orientation
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Review Mini-case materials