Startup Versus Small Business

Common sense might tell you that startups and small businesses are one and the same. Truth be told, there is a fundamental difference between these two types of entrepreneurial firms. The biggest difference between a startup and a small business is the end goal. Owners of a small business generally seek to make large profits and grow their company. The objective of a startup is typically growth and future revenue. Since startups aren't as well known, I will cover some basic principles and explain some goals that are key to a successful startup.

Two weeks ago I got the opportunity to listen to Drew Winship speak on startups. Drew has been the CEO of a startup for close to five years and he shared his successes, failures, and what he would change if he got to do it all over again. One of the more surprising statements he made was that you should aim for your startup to be worth fifty million dollars within five to seven years. That seems like a lot of money right? He explained the equation to get this figure.

$2.5 million (post-money) / 5% (chance of success) = $50 million 

The money raised should be divided by the chance of success to get the revenue wanted should you plan to sell your company in the near future. Drew also went into the logistics of how that money is split up and by the time you factor in taxes, wages, repaying investors, and time spent, you have a small portion of a seemingly large liquidation sale. Then you might also have to split whats left between owners. Although Drew said startups were ideal for him, small businesses might be preferred by others. According to Neil Thanedar (2012), "Establishing a successful small business can build credibility and be hugely valuable when launching a startup." So when deciding whether you want to create a startup or small business research the facts and see what aligns more with what you want.

Works Cited

Council, Y. E. (2015, February 17). Are You Building A Small Business - Or A Startup? Retrieved February 24, 2017, from https://www.forbes.com/sites/theyec/2012/08/15/are-you-building-a-small-business-or-a-startup/#4465be9a528a

Ethics in the Workplace

Whether you're an accountant, engineer, or entrepreneur you will face ethical dilemmas. In fact, most jobs have implemented a moral code that employees must follow. Well what constitutes an ethical dilemma? First we need to define ethics and then examine how this plays a role in entrepreneurship. Merriam-Webster (2017) defines ethics as, "the principles of conduct governing an individual or a group." Therefore, an ethical dilemma involves a situation in which a person must make a choice that either aligns with their moral code or violates it. Sometimes making an unethical decision is lawful sometimes it isn't.

What's interesting is the uniquely challenging ethical problems entrepreneurs face. It's also important to discuss why entrepreneurs might react differently compared to a professional in an established organization. According to Dr. Hannafey (2003), "these individuals usually operate in stressful business environments and often struggle to find time and perspective for focused ethical reflection." Since entrepreneurs are often introducing new technologies and techniques, they find themselves being the first to encounter entirely new ethical dilemmas. Without moral guidance it's easy to make poor ethical decisions. The allure of an immediate reward can cloud someones judgement and end up crippling a company.

Now not all entrepreneurs are alike and certainly not everyone will face the same ethical dilemmas. As the interest in entrepreneurship keeps increasing it is important to act not only lawfully, but ethically. Take your time making important decisions and consult with coworkers, supervisors, or someone you respect. At the end of the day your decisions define who you are so make sure they're the right ones

Works Cited 

Ethic. (n.d.). Retrieved February 17, 2017, from https://www.merriam-webster.com/dictionary/ethic

Hannafey, F. (2003). Entrepreneurship and Ethics: A Literature Review. Journal of Business Ethics, 46(2), 99-110. Retrieved from http://www.jstor.org/stable/25075093

The Rise of the Self-Made Entrepreneur

Entrepreneurship has no doubt played a role in history since ancient times. Most might even say it was a necessity to adjust to ever changing living conditions and problems. When civilizations needed more efficient ways to travel and trade goods, the first boat was made. Instead of constantly moving around to farm, forage, and hunt humans advanced the field of agriculture to make life easier. Where most people see a problem, these pioneers see an opportunity and take advantage of it. 

As unfortunate as unemployment and recessions truly are, they have an interesting effect on the attitude of many people. When the job market becomes volatile, groups of men and women look to create their own jobs and opportunities. According to Glenn Llopis (2013), “entrepreneurship is more than starting a business…it is an attitude; it represents how you think and act.”

So what makes someone a self-made entrepreneur? It’s actually as simple as it sounds. A self-made entrepreneur is someone who becomes successful due to his or her own hard work and perseverance. They come from “nothing” as opposed to inheriting money or a company. With the advancement of technology, entrepreneurs are able to maximize their capabilities and enter a market more easily. As Sophie Wade (2014) put it, “empowered entrepreneurs can adapt and execute fast while large organizations are struggling to keep up with the pace of technology developments and finding it hard to respond quickly.”

So if there’s anything you take away from this post make it this: you can make success for yourself. Sure its probably not as easy as saying it, but people all around you have and continue to create their own opportunities.

                                                                   Works Cited

Llopis, G. (2013, January 15). Working with an Entrepreneurial Attitude is a Powerful Addiction. Retrieved February 10, 2017, from http://www.forbes.com/sites/glennllopis/2013/01/15/working-with-an-entrepreneurial-attitude-is-a-powerful-addiction/#36977e85f946

Wade, S. (2014, June 12). Behind the rise of entrepreneurship. Retrieved February 10, 2017, from http://fortune.com/2014/06/12/behind-the-rise-of-entrepreneurship/

Introduction: The entrepreneurial spirit in all of us

"So what's your big idea? Are you starting your own company right out of college?"

Maybe the most common question I get after explaining I'm an entrepreneurship major is what my immediate plan is. Well, to be honest with you I'm not quite sure what my plan is yet. I don't have a million dollar idea and I don't think I'm the next Bill Gates. However, as a junior in the entrepreneurship program at Saint Louis University I'm starting to get a better idea about the big picture. My curriculum includes classes like management theory, managing ideas in entrepreneurial firms, and organizational behavior. Maybe the most important thing I've learned so far is that the principles behind entrepreneurship can be used in all sorts of situations as well as most jobs. According to Dr. Hicks (2016), "All of are born with the ability to take risks, think creatively and challenge the everyday way of doing things." I decided to write this blog about different forms of entrepreneurship and how useful it can be to develop the qualities and values of an entrepreneur. I plan to post interesting articles and give readers a better understanding of the field of entrepreneurship. My goal is to provide unbiased information with my posts and attach links that provide more detailed information. Hopefully some of you can use what you read to improve your life in some way or another. Make sure to check weekly for new updates and posts!

Gavin

                                                             Works Cited

Hicks, S. R. (2016, May 01). What Entrepreneurship Can Teach Us About Life. Retrieved February 05, 2017, from https://www.wsj.com/articles/what-entrepreneurship-can-teach-us-about-life-1462155387