Instructor’s Resource Manual for Essentials of Entrepreneurship and Small Business Management Ram Subramanian
Essentials of Entrepreneurship and Small Business Management Ninth Edition Global Edition
Norman M. Scarborough Jeffrey R. Cornwall
TABLE OF CONTENTS INSTRUCTOR’S RESOURCE MANUAL ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT NINTH EDITION, GLOBAL EDITION Title
Page
Preface
ii
Chapter 1
The Foundations of Entrepreneurship
1
Chapter 2
Ethics and Social Responsibility: Doing the Right Thing
16
Chapter 3
Creativity and Innovation: Keys to Entrepreneurial Success
37
Chapter 4
Conducting a Feasibility Analysis and Designing a Business Model
57
Chapter 5
Crafting a Business Plan and Building a Solid Strategic Plan
76
Chapter 6
Forms of Business Ownership
95
Chapter 7
Buying an Existing Business
105
Chapter 8
Franchising and the Entrepreneur
116
Chapter 9
Building a Powerful Bootstrap Marketing Plan
131
Chapter 10
E-Commerce and the Entrepreneur
151
Chapter 11
Pricing and Credit Strategies
167
Chapter 12
Creating a Successful Financial Plan
183
Chapter 13
Managing Cash Flow
197
Chapter 14
Choosing the Right Location and Layout
214
Chapter 15
Sources of Financing: Equity and Debt
230
Chapter 16
Global Aspects of Entrepreneurship
250
Chapter 17
Building a New Venture Team and Planning for the Next Generation
263
Case and Chapter Matrix
279
Case Solutions
281
Sample Syllabus
305
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PREFACE Congratulations on choosing the ninth edition of Essentials of Entrepreneurship and Small Business Management for your course! This instructor resource manual is a supplement for this ninth edition text authored by Norman M. Scarborough and Jeff Cornwall. Chapter Contents: Each chapter of this instructor resource manual is divided into six parts: • Part 1: Learning Objectives • Part 2: Class Instruction, with content clearly noted by learning objective. Key words are highlighted, and definitions provided. Suggestions are included when appropriate to use each of the Chapter Exercises. • Part 3: Chapter Exercises, including answers to the You Be the Consultant, Hands On… How To, and Ethics and Entrepreneurship features. • Part 4: Chapter Discussion Questions • Part 5: Case Studies • Part 6: Online Videos and Podcasts The chapter exercises, discussion questions, and case studies provide a wide variety of inclass individual and group exercises, as well as potential homework assignments and exam questions. In the text you will find an exceptional business plan outline in Appendix A, which can form the basis for a meaningful project for individuals or groups. Choose which exercise you want to use based on your personal preferences, the number of students in your course, as well as the level of knowledge and preparation of your students. Project-Based Learning: My personal preference is to use project-based learning when teaching this course. After completing Chapter 3, Inside the Entrepreneurial Mind: From Ideas to Reality, I require my students to identify new business concepts they are personally interested in or excited about. If you refer to the Sample Syllabus, you will see that students must “pitch” their business concept to the whole class during week 5. Students also work in teams throughout the term. The team project is to conduct a feasibility analysis and prepare a business model. Teams are expected to use the information learned in each chapter to develop a business model for his or her new business. Students coach each other to revise and refine their business model. If you
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choose, you could do the same process focused on writing a business plan. Please refer to my sample syllabus at the end of this manual for more ideas. Students become more engaged in their learning by using project-based learning, and learn at higher levels by creating something unique to their interests. Without application of what they are learning they will likely become distracted and only study enough to get the grade they want on your exams. Entrepreneurial students truly want to learn and become bored quickly if not engaged in the process. If you agree that project-based learning is worth the time and effort then I have a few suggestions for you: • Students’ new business ideas must be ethical, moral, and certainly legal. • The best business idea is one that a student is passionate about, as it will not feel like work. They will be more motivated and engaged in the process if they are excited and have a feeling of ownership. • Ideally, they will choose a simple business idea that could be started by the end of your course. I suggest that they consider ideas for a simple “starter” business instead of an idea that would take months or even years to prepare. • Their business ideas should also be innovative and creative. For example, if a student wants to start a florist business, insist that the student find ways to differentiate their florist shop from competitors. Chapter Instruction Sequence: When delivering my lecture I follow a consistent sequence of events loosely based on Gagne’s Nine Events of Instruction. I follow this four-step sequence when presenting each learning objective. 1. Gain attention and stimulate prior knowledge. I ask an open-ended question about the topic, and have students discuss their answers with each other; this stimulates engagement right from the beginning. After a few minutes I ask a few students to share their answers with the entire class, and provide feedback that is designed to reinforce student participation. 2. Lecture on the key points of the learning objective. I do not cover all of the key points, but instead focus on the most important concepts that students may be confused about by just reading the text. Students have different learning styles, (visual, aural, verbal, logical, etc.) so it is important to use a variety of teaching methods. 3. Provide examples to reinforce each key point; these examples may come from my own experience, or a story about someone else, such as a well-known entrepreneur. I also like to use the Chapter Exercises at this point in my lecture, or better yet sections of The Daily Perc Business Plan (found in the Appendix of the text).
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4. Show a brief video (3 to 5 minutes long) to provide additional reinforcement of the key points of the learning objective. You will find a nice variety of videos at the end of each chapter. Then I repeat the same four steps for the next learning objective. Homework and Exams: Case studies make exceptional homework assignments. To add variety, I will assign a case study as homework, and then use the Harvard case study method during the next class meeting. My personal preference is to use the Chapter Discussion Questions either as an exam study guide for students, and/or as actual exam questions. For example, I tell students to study all of the discussion questions as I am going to include three of them as essay questions on the exam. Conclusion: This text is so well organized that it follows the typical process people actually follow when starting a business. In addition, concepts are so well explained that students with any level of knowledge of entrepreneurship can understand and be prepared to apply them. I know you and your students will enjoy this text, and I hope you will have as much fun teaching this course as I do!
Supplement Author
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