Entrepreneurial & Small Business
Needs
Eighth Annual Financial
Mathematic Festival
Department of Mathematics
The Florida State University
February 25, 2006
Introduction
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Students?
Educators?
Plan to Teach?
Own a Business?
Plan to Own a Business in Future?
Plan to Work in Large Corporations?
Plan to Work in Government?
Caveat
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Data and debate: small vs. large company
contributions to economic development
Response to Caveat
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“Small companies are critical to the
health of America’s new economy. But
we’re only beginning to pierce the shroud
of myth, half-truth, and outright ignorance
that surrounds this dynamic sector of the
marketplace.”
(“The Wonderland Economy,” by John Case. INC Magazine, May 1995.)
Why Bother?
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American workers’ futures
Your Future?
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More than 3 million layoffs announced by US
companies between 1990 & 1996
Many experience lay-offs or firing more than
once
Fired during peak earning years:
“Prematurely, involuntarily retired.”
Some try to return to large corporations
through prolonged job searches
Your Future?
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Corporate jobs: mergers, acquisitions,
troubled companies, and workforce aging
84% of senior managers in the
ExecuNet.com say age discrimination starts
around age 50
2004 survey of Institute of Electrical &
Electronics Engineers-USA members:
median age of 49 & 42% were unemployed
Your Future?
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Changing employment market needs
Outsourcing: your job may go to one; you may
become one
2004: experts estimated that about 11% of all US
workers (14 million) were at risk of losing their jobs
to outsourcing
Demands of Wall Street; rising health costs;
“proliferation of excellent, inexpensive” workers in
other countries has “hastened the demise of the
safe, secure white-collar job.”
Your Future?
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2.3 million US jobs vanished between early 2004
and Jan. 2001: about 10% moved abroad
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“Some of those jobs may never come back. But others will
take their place—created, as usual, by small companies.”
Hundreds of thousands professionals can’t find
employment in positions where they’ve been
successful
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Living off retirement savings 15 years earlier than planned
Your Future?
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Some buy or build their own businesses, but
must learn to be entrepreneurs while earning
a living
“You won’t be in a high-rise corner office with
five secretaries. But it’s going to be a more
fun life, because you’re in charge.”
Your Future?
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“Making more decisions in a day than a CEO
makes in a month.”
Temping “…is now teeming with white-collar
staffing agencies…short-stay CFOs and
CIOs.”
Your Future?
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“Multi-revenue stream” model: rent yourself
to multiple companies & fledgling enterprises
“For rent” company officers not usually in a
Fortune 500 company
Multiple careers in lifetime require life-long
learning
Displaced workers may also choose to
become stay-at-home parents
Your Future?
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Reversal or slow down of this trend may
come if companies don’t have enough
workers when “baby boomers” retire
To some businesses, “There was a
preconception that IBMers were used to
large staffs & couldn’t roll up their sleeves
and do work.”
Unprepared for job searches
Your Future?
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Are You Ready for a Changing Future?
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What skills are in your toolbox?
Options
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“’I’m an optimist about the long-run
economic performance of the US because
of the superb entrepreneurial
environment in this country.’ The answer
is to encourage that culture…”
Options
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Small businesses: 99.7% of all US employers
Small businesses create more than 50% of US nonfarm private gross domestic product (GDP)
Small patenting firms produce 13 to 14 times more
patents per employee than large patenting firms
More than 24 million small businesses in the US are
located in every community and neighborhood
Small businesses employ 50.1% of US non-farm
private sector workers
Options
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Home-based businesses account for 53% of all
small businesses
Small businesses are 97% of America’s exporters
and produce 26% of all export value
Estimated 580,865 new small US firms with
employees started up in the last year measured
Latest figures show that small business creates 65%
or more of America’s net new jobs
Jim Moran Institute (JMI) for Global
Entrepreneurship
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Helps entrepreneurs with currently existing
businesses to succeed without cost to them
Goal to grow economy through existing businesses
Helping businesses that have employees & annual
sales between $1 M & $10 M
Provides mentors for JMI businesses that have been
in existence for at least two years
JMI Services
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Business consulting with JMI team
Mentor/Mentee Program
“Lunch with Jerry” through Tallahassee
Chamber of Commerce
Executive Roundtables: business owner peer
groups for discussing areas of concern
Workshops and presentations
JMI Services
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Accelerator Program Pilot
Guerrilla Marketing Program Pilot
Articles & archives
Business check lists
Links to helpful sites
In person & virtual assistance & coaching
JMI Services
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Junior Achievement in high schools
FSU Collegiate Entrepreneurs' Organization
College students assisting businesses
Small Business Institute (SBI) Program:
students apply their skills & knowledge to JMI
clients
JMI Consulting Areas
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Business plan development
Financial planning
Valuation of business
Marketing strategy development
Operational improvements
Executive coaching & mentoring
Information on new product development
Family business consulting
Referral sources for additional assistance
JMI Entrepreneur Assistance
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Leadership training or assistance
Organizational structure, development, or
improvement
Infrastructure development
Recruitment
Advice or assistance with personnel matters
Business process analysis
Business process changes & change management
JMI Entrepreneur Assistance
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Assistance with major business decisions
Introduction to people who can assist the
business
Assignment of a mentor
Growing a business
Managing people
Managing money
JMI Entrepreneur Assistance
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Financial analysis
Accounting issues
Marketing your business
Sales
Strategic & tactical planning
Exit strategies
Succession planning or disposing of your
business
JMI Entrepreneur Assistance
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Entrepreneurs must be able to do it all:
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Start & run every aspect of a business
Be fearless, not foolish
Cover their risks
Use their assets as collateral
Stand on reputation, delivery & services
JMI Business Metrics for Success
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Improved efficiency of operations
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Increased speed of business processes
Increased productivity
Increased number of employees
Increased gross revenue
Increased profitability
Increased company stability
JMI Business Metrics for Success
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Process developed for reducing debt
Debt reduction
Company prepared for growth or
restructuring--including reduction or
stabilization
Improved capabilities of leaders
Staff understanding of their roles in meeting
business needs
JMI Conclusion
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“As the prospect of operating a business in
the future becomes more and more complex,
the JMI will be a continual source of
education aimed at keeping entrepreneurs
informed and prepared to meet the challenge
of coming trends.”
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4,000 entrepreneurs assisted over 10 years
Thank you!
Nolia Brandt, Ph.D.
Associate Director
Jim Moran Institute for Global Entrepreneurship
College of Business
The Florida State University
noliab@brandtinfo.com
850.322.8698