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Owning and Operating a Small BUS1DSS . Pub DATF ABSTRACT DOCU Earl' EBStJ 1 ED 133 L35 OB 007 766 Arifin1R Nelsot Fobrt E., T,nd TITLE Owning and Operating a Small BUS1DSS. Strategies for Teaching Small Business Ownership and Management. TITUTION Illinois Univ., Urbana- Dept. of Vocational and Technical Education. SFON0 AGENCY Illinois State Office.of Education, Springfield_ Div. of Adult Vocation-11 and Technical Education. R7PORT NO VT-103-440 pUB DATF Jun 76 NOTE 168p. EDES PRICE MF-$0.83 HC-$8.69 Plus-Posta 'DESCRIPTOBS *Adult Education; Business; Business Administration; .sinfi?ss Education; Business Skills; case Studies; *Curriculum;'Cur'iculum Guides; *learning Activities; *Management Education; Post Secondarr--Education; condary Education; Teaching Guides; Units of Study (Subject Fields); Vocational Education IDENTIFIEBS *Small Businesses ABSTRACT To aid the teacher in providing instruct on i;t small b usiaess ownership and management:for students ent the secondarY, adult, continuing education, or c-ommunity collge levels, this curriculum guide contains 14 units, each consisting ol.f introduction, objectives, content, and suggested activities. Suggested activities include projects, group dynamics, simulations, role playing, case studies, and assignments.A number of special activities included in e ach unit are categorized according to the areas of creativty an innovation, 'coping with chanae and competition, achievement_ motivation, prohlem.-solving and decisionmaking, human relations ability, and developing a positive self-image. Most units contain at least one case study depicting a real-life business, situation regarding the unit topic. Units axe entitled(1) The Nature of Small Business, (2) Determining Product and Market,(3) Selecting the Location, (4) Obtaining Initial Capital,,(5) Choosing the Legal Form o f Organization,(6) Managerial Planning,(7) Recordkeepinq, (3) Financial Management, (-) Credit and.Collections, (10) Advertising and Sales Promotion, (li) Employee and Community Relations, (12) Obtaining Inforaation and Assistance,(13) Insurance, and (14)The Future of Small Business. (NJ) Documents acquired by ERIC include many informal unpublished * materials not available from other sources. ERIC makes every effort * * to obtain the best copy available. Nevertheless, items of marginal * * reproducibility are often encountered and this affec's the quality * * of the microfiche and hardcopy reproductions ERIC makes available * via the ERIC Document Reproduction Service (EDRS) .EDRS is not * responsible for the quality of the original document. lieproductions * * supplied by TDRS are the best that can be made from the original. -aching small busk.] ss rship and manageme t Project Director: Dr. Robert E. Nelson, Chairman Division of Business Education Depart-nt of Vocational and Technical Education University of Illinois at Urbana-Charnpaign Assistant Project Director: James A. Leach Division of Business Education Department of Vocational and Technical Educ tion University of Illinois at Urbana-Charnpaign Research AssiOant: Thomas J. Scanlan Division of Business.Education Department of Vocational and Technical Education University Of Illiriois at Urbana-Champaign Ut- June, 1976 This document has been developed and published under a contractual agreement between the Illinois Office of EduCation. Department of Adult. Vocational and Technical Education, Professional and Curriculum Development Section, 100 North First Street, Springfield, Illinois 62777, and the Department of Vocational and Technical Education, University of Illinois at Urbana-Champaign. Design, iliustratiorand cover by Wheeler Arts. The project staff wishes to express their gratitude to the folio vving people who contri- _Puled to the development of the curdculurn guide: Dr. Lloyd J. Phipps, Chairman, Department of Vocational and Technical Education versitv of Illinois, Urbana, for his erpimurag ement leadership, and guidance./ Business Representatives Warren Keith, Regional Director or Man ag ement Asskance, Small Business Administra- tion Chicago,Illinois;Joseph Clermont,ivian-aljernent Assistance Officer,Central Region, Small Business Administration,Gtficago, Illinois; Pete Ignasiak, Management Assistance Officer, Chicago Distri-cr-Srn all Business Administration; Leonard Larsen, Management Assistance Officer, Small Business AdministrAien, Springfield, Illinois; Ian Ferguson, Service Corps of Retired Executives, Chicago chapter; James Withers, Exe- cutive Vice President, Chamber of CommerCe, Urbana, Illinois; John Neils, Executive Vice President. Chamber of Commerce_ Champaign, Ilfinois; Louie Haut, Owner, Graphic Press. Champaign, Illinois. Educational Representatives Rickard Holstrand, Rebecca Douglass, Peogy Pool, Siaff of the Professional and Curri- culum Development Section, Department of Adult, Vocational and Technical Education, .Springlield, Robert Kerber, East Texas State University; Carl Larson, University of Illinois: Sidney Drain, Main West High School; John Huser, Illinois Central_ College: Jerome Baness, Illinois Valley College: James Moreau, Rock Valhey College: Glenda Gum, Centennial Flip!, School; John Fillipo, Sandburg High School: Arthur Miller, Olney Central College; Marilyn Oglesby, Eastern Illinois University; William Muclra, Illinois Cen- tralCollege; Evelyn Stewart, University of Illinois;Ellen Ensel, University of Illinois; Graham Thompson, University of Illinois, William, McBride, University of Illinois. Special thanks is given te Ruthann Ryan, University oilinois, for h&r assis ance in proofreading, typing, and correcting. 4ntroduction 1 Unit 1 The Nature of Small Business . .. ..7 Unit2Determining Product and Market 17 Unit3Selecting the Location 23 Unit4'Obtaining Initial Capital 29 Unit5Choosing the Legal Form of Organization . .. ..37 . Unit6Nilanagerial Planning . " . ... .. 43 Unit7 Recordkeeping . 51 , _ Unit8 Financial Management . ..... 69 Unit9 Credit and Collections 85 Unit 10Advertising and Slates Promotion 91 Unit 11Employee andCOmmunityRelations .. _ . 101 Unit 12Obtaining Information and Assistance . 113 Unit 13Insurance 121 Unit 14Th e Future of a Smal in ess 125 Bibiiography 130 Appendk A Small BuSiness Perceptions !nvn tory 135 Appendix Small Businoss Owrership and Manarrn en Test ... 138 Why Teach Small Business Management? country, 95% are considered small. Whether the sub. ject of small business management is introduced to Small business represents avital and significant students to create an awareness of future career force in the American economy, The role of small busi- opportunities in small business, or as a means of pre. ness has been extremely visible in the past. In the last paration for a career as a small business owner/ century one writer, Alex de Tocqueville, recorded his manager. the subject may be extremely relevant and fascination at the bustIlng economic activity which con- timely for many students. As is the case for all career = fronted him on his arrival in this country. Everywhere choices, the decision to become self-employed is a he looked he saw one kind of business or another. He major one. This decision warrants careful consideration saw a nation of people who ''dared explor-_,.= new fron- and study. To be successful, the small business entre- tiers, people eager to build lives for themselves in a preneur shoulpl possess many qualities and skills. He spacious society that did not restrict their freedom of or she should be energetic, enthusiastic, and be willing choice and action. There is undeniably something al- to work long hours_ He or she should also have a great most feverish in the activity this freedom imparts to desire to achieve, be reasonably intelligent, and have industry and to the hirnan spirit," good planning and decision-making abilities. For per- Today, the role of small business may be somewhat sons having these qualifications, the life and career of hidden when viewed within the context of our present a business owner/manager will contain rewards in industrial society. Too often we think of business in terms of work satisfaction, jpcome, and the belief of terms of large corporations. Such names as General contributing to social responsibility. Motors, Standard Oil, and General Electric are almost household words. Abro&d, the image of the United How is This Guide Unique? States is a land of giants. a nation of big business. Though not immediately apparent, small business is Until recently, formal education relating tosmall ofvital importance to the economy of the United business ownership and management has not been States. Small firms make a major contribution to Ameri- very popular. Management education at all educational can economic life Opportunities exist for small busi- levels has tended toward the teaching of sophisticated nesses in all private sectors of our economy. managerial skills suitable for managers and employera Judging by the number of small businesses currently of larger organizations. It is ironic that for all our verbal in existence, small business ownership ranks big!) as a commitment to the American dream that anyone can career choice. According to the Small Business Ad- . own abusiness and be his or her own boss ministration, of the eight million businesses inthis students are rarely taught the basic knowledge arid Introduction 1 skills necessary for operating a smail business. ing course in small business management. The guide The need for instruction in small business rnenege- can else be used most effectively to integrate email ment is further evidenced by the high mortality rate
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