The article "The Changing Face of the Entrepreneur" talks about entrepreneurialism, it has been created by Ed McMahon.
Another New Year is upon us, hpoefully more optimistic than the past.
Better economic news, a rising stock market and a stubbornly slow upward movement in small bsuiness job creation. Are we returning to the way things were in the 90’s? Not if we examine the make-up of the new entrepreneurs.There are more women, continuing a growth that started sveeral years ago.
While males are still more predominant in owning and running small businesses, new business start-ups by women are about equal to those of guys.We are also seeing more minorities. Small businesses have historically been the eocnomic entry point for immigrants and that is more true to day than ever before. Recent census bureau statistics indicaets that the population growth of Texas, growing about 1.8 % annually is being fueled, in great measure, by continuing immigration growth. Aiding in the growth of minority business is the fact that vetnure capital is becoming more available to this growing entrepreneurial segment.
A last month released study, "Minorities and Venture Capital" by William Bradford, professor of finance and business economics at the University of Washington in Seattle and Timothy Bates, professor of economics at Michigan’s Wayne State University indicates that minority businesses should be able to access regular financing, because recent data suggests these investments are providing competitive yields with similar investment in other enterprises.As the minority and immigrant entries in the small business arena grow, there is also an aging of the entrepreneur, most likely caused by reductions in staff by the larger corporations. New corporate opportuinties are at this moment more limited for many whom lost out during the recent downturn. No longer is the security of the large corporation taken for granted as it once was.
Tehse middle-aged entrepreneurs may approach small business as an opportunity. But many may not be prepared to work as hard and as long as the younger entrepreneur, who starts from a much dfiferent workplace experience.
The aging entrepreneur may also be more service orientated trying to utilize his years of experience to help others, but often with only limited success.Additionally, a much larger growth is taking place in the service areas and high tech areas.
Once a smaller segment, service industries are at this moment the fastest growing segment, outdistancing the retial sector. The smaller manufacturing segment continues but is no longer growing.As the growth of minority entrepreneurs, Asian, African-American, Middle-Eastern and Hispanic becomes more prominent, and immigration rates continue to grow well into this century, what effect will it have on small businesses in America, in Texas and in the Houston metropolitan area? Languages, other than English, will continue to be heard, encouraging minoirty businesses to deal preferentially with similar ethnic owners.
Will this help or hinder your samll business?Much has also been said about preparation for retirement.
Seldom a day goes by that we are not remnided to save more in our 401k’s.
For many this means a longer worklife, not only driven by necessity but by the reailty that retirement, which means stopping work, isn’t as satisfying as once thought.
The remedy is to have your own business and work as long as you wishWe know that samll businesses will continue to fuel the economy. They will continue to craete about 75% of the new jobs. Many of the service-orientated businesses may be working out of tehir homes.We will see an aging of the new small business owners. Coupled with female and minority owners, we can expect them to increase their political muscle both for small business issues as well as women, minority and aging issues.And finally we will see many small businesses servicing more and more small businesses.We must recognize that the small business world is changing substantially and that is good. The etnrepreneurs of the world must be alert to deal with these changes.
New and emerging small businesses will be our suppliers, our competitors and our customers and we must understand them all to survive in the ever-changing world of small business.
May 2004.”Ed” McMahon’s career includes the small businses and corporate world. With dgerees from Villanova Univ. an MBA from the City University of New York and completed postgraduate work at the Stanford University, he is the author of the book“ UnderstandingSmallBusiness (http://www.Understandingsmallbusiness.Com).
Ed has extensive small business experience. He has counseled several hundred small business prospects in the principles of small business.
He drafted the FTC disclosure statement for a major convenience store chain currently operating.
He has held senior posts as executive vice president of a mid-size oil company, headed up the polymer division of a major chemical company and was taught “UNDERSTANDING SMALL BUSINESS” workshops employed as an officer of a major consulting company.Ed has taught Small Business workshops at the business college level, and for the past 11 years.
For 6 years his motnhly column on small business has been published in a regional business journal.
He can be reahced at USB@houston.Rr.Com.
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