Fundamentals of Management, 8th ed

Chapter 5: Entrepreneurship and New Venture Management

1 3 5

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

---

Construction

About 11.73 percent of businesses with fewer than 20 employees are

involved in construction. Because many construction jobs are relatively small, local

projects, local construction firms are often ideally suited as contractors. Many such

firms are begun by skilled craftspeople who start out working for someone else and

subsequently decide to work for themselves. Common examples of small construction

firms include home builders, wood finishers, roofers, painters, and plumbing, electrical,

and roofing contractors.

For example, Marek Brothers Construction in College Station, Texas, was started

by two brothers, Pat and Joe Marek. They originally worked for other contractors

but started their own partnership in 1980. Their only employee is a receptionist.

They manage various construction projects, including new-home construction

and remodeling, subcontracting out the actual work to other businesses or to

individual craftspeople. Marek Brothers has an annual gross income of about $5

million.