Convenience

entrepreneur
Someone who
engages in
entrepreneurship
small business
A business that is
privately owned by
one individual or a
small group of
individuals and has
sales and assets that
are not large enough
to meaningfully
influence its
environment
Chapter 5:
Entrepreneurship and New Venture Management
1 2 9
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For example, when Microsoft Corporation first sold its stock to the public in 1986,
Bill Gates, then just 30 years old, received $350 million for his share of Microsoft.
3
Today his holdings—valued at over $53 billion—make him the richest person in
the United States and one of the richest in the world.
4
Many more entrepreneurs,
however, have lost a great deal of money. Research suggests that the majority
of new businesses fail within the first few years of founding.
5
Many that last longer
do so only because the entrepreneurs themselves work long hours for very little
income.
As Figure 5.1 shows, most U.S. businesses employ fewer than 100 people, and
most U.S. workers are employed by small firms. For example, Figure 5.1(a) shows
that approximately 86 percent of all U.S. businesses employ fewer than 20 people; another
11.7 percent employ between 20 and 99 people. In contrast, only about 2.1 percent employ
between 100 and 499 workers, and another 0.2 percent employ 500 or more. Figure 5.1(b)
shows that 24.5 percent of all U.S. workers are employed by firms with fewer than 20
people; another 29.6 percent work in firms that employ between 20 and 99 people. The
vast majority of these companies are owner-operated.
6
Figure 5.1(b) also shows that
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