CHAPTER 1:  SMALL BUSINESS:  VARIETIES AND IMPACTS

Chapter Summary

This chapter overviews the role of entrepreneurship in the United States and discusses the impact that small businesses have on the community as a whole.  Basic definitions of entrepreneurship, small business and the main entry methods are provided.  The reason entrepreneurs chose to go into business and the actions they must accomplish to be successful are also included.  The BRIE model is introduced and described in this chapter.
This chapter is the first of four chapters in Part One – Entrepreneurs and Ideas: The Basis of Small Business.

Learning Objectives

After studying this chapter, the student should be able to:

1. Understand the scope of small business in the United States.
2. Differentiate between small businesses and high-growth ventures.
3. Dispel the key myths about small businesses.
4. Identify actions key to becoming a small business owner.
5. Recognize how small businesses are important to our economy and your community.
6. Recognize the seven key strategies of the entrepreneurial way.

Focus on Small Business: Robin Roth, Pixel Press 

Robin Roth was an avid gamer in his youth and designed new levels of his favorite games in his head and on paper. The fact that both his parents were entrepreneurs and encouraged him in that direction, it seemed inevitable that Robin would become an entrepreneur himself.  Robin’s Pixel Press software allowed regular people with no programming skills to create playable games on their Apple devices.  Following a successful Kickstarter campaign, Robin took Pixel Press to market, leading to a partnership with Cartoon Network.

Focus on Small Business Discussion Questions

1. Do you think Robin was originally thinking about starting a business when he was working in programming and marketing positions in other peoples’ companies?

Most likely, as Robin had already created his own firm, Roundthird, to develop games as his side gig on nights and weekends while honing his programming skills during the day at his regular programming job.  As he developed his programming knowledge, project planning skills, marketing skills, and networked with other, he became convinced he go full time as an entrepreneur given the right idea.

2. What drove Robin to start a business of his own?

Robin credits a constant presence of an entrepreneurial spirit around him from a young age and throughout his education.  Robin says himself: “Both of my parents were entrepreneurs and encouraged me early on in things like “baseball card shop” not just in our basement but online as well, when making a website was still very hard.”

3. How important were contacts and connections to the growth of Robin’s business?

While working, Robin built a network of contacts that would likely prove useful as he got Pixel Press started.  In addition, Robin was active with the Global Student Entrepreneur Awards at his alma mater SLU.  He remains active with the program and credits them with continued learning and staying engaged at all levels which helps him stay fresh and grounded.

4. Do you think Robin would credit his step-by-step approach with the success of his business?  What is your opinion?

Student opinion will vary but Robin’s success was likely enhanced by waiting until the right idea came along to turn him into a full time entrepreneur.
Extended Chapter Outline
 

Learning Objective 01-01: Understand the scope of small business in the United States.

STARTING AN ENTREPRENEURIAL SMALL BUSINESS: FOUR KEY IDEASObjective 1:  Understand the scope of small business in the United States

• You can start a small business and there are ways to be a success.  Consider the four things that Robin did right:
  • Believing that you can do this
    • That belief in yourself is called self-efficacy