1. What is Entrepreneurship?

2. What is Entrepreneurship
An individual who undertakes the creation, organization, and ownership of an innovative business with potential for growth
Entrepreneurship
The process of recognizing or creating an opportunity, testing it in the market, and gathering the resources necessary to go into business

3. Benefits to Society Contributions made by Entrepreneurs to society
Recognize consumer wants and needs—turn demand into supply
Create a market for venture capitalists
Provide jobs for communities
Can change society
Steve Jobs, Mark Zuckerberg
What Entrepreneurs Contribute To Society(Video)

4. Rewards and Risks Competition Long Hours Uncertain Income
Be your own boss
Do something you enjoy
Express creativity
Set your own schedule
Job security
Potential for greater income
Competition
Long Hours
Uncertain Income
Full Responsibility
May lose investment

5. What Makes a Successful Entrepreneur?
Characteristics of a successful entrepreneur (not an exhaustive list!)
Confident
Determined
Resourceful
Responsible
Goal oriented
Creative
Flexible
Self motivated
Risk taker
Online Personality Quiz

6. Rewards and Risks Competition Long Hours Uncertain Income
Be your own boss
Do something you enjoy
Express creativity
Set your own schedule
Job security
Potential for greater income
Competition
Long Hours
Uncertain Income
Full Responsibility
May lose investment

7. What Makes a Successful Entrepreneur?
Characteristics of a successful entrepreneur (not an exhaustive list!)
Confident
Determined
Resourceful
Responsible
Goal oriented
Creative
Flexible
Self motivated
Risk taker
Online Personality Quiz

8. Sole Proprietorship
The easiest and most popular form of business ownership is the sole proprietorship.
sole proprietorship
a business that is owned and operated by one person

9. The owner of a sole proprietorship:
receives the profits,
incurs any losses, and
is liable for the debts of the business.

10. Sole Proprietorship
In a sole proprietorship the owner must decide how much liability protection he or she needs.
liability protection
insurance against the debts and actions of a business

11. Advantages Sole Proprietorship
Sole proprietorship is easy and inexpensive to create.
The owner has complete authority over all business activities.
It is the least regulated form of business ownership.
The business pays no taxes; income is taxed at the personal rate of the owner. 11

12. Disadvantages Sole Proprietorship The owner has unlimited liability.
Raising capital is more difficult.
The business is totally reliant on the skills and abilities of the owner.
The death of owner dissolves the business unless there is a will to the contrary. 12

13. Disadvantages
The biggest disadvantage of a sole proprietorship is financial.
In this form of business ownership, the owner has unlimited liability.
unlimited liability
full responsibility for all debts and actions of a business

14. Partnerships partnership
A partnership draws on the skills, knowledge, and financial resources of more than one person.
partnership
an unincorporated business with two or more owners who share the decisions, assets, liabilities, and profits

15. Advantages Partnerships Partnerships are inexpensive to create.
General partners have complete control.
Partners can share ideas.
Partners can secure investment capital more easily and in greater amounts. 15

16. Disadvantages Partnerships
It is difficult to dissolve one partner’s interest without dissolving the partnership.
There may be personality conflicts.
Partners can be held liable for each others’ actions. 16

17. The Main Idea
In a corporation, the owners of the business are protected from liability for the actions of the company.

18. What Is a Corporation? There are three types of corporations:
C-corporation
Subchapter S corporation
nonprofit corporation
corporation
a business that is registered by a state and operates apart from its owners; it issues shares of stock and lives on after the owners have sold their interest or passed away

19. C-Corporation A C-corporation is the most common corporate form.
an entity that pays taxes on earnings; its shareholders pay taxes as well

20. C-Corporation
In smaller corporations, the founders generally are the major shareholders.
shareholders
the owners of a corporation

21. ability to raise investment money
C-Corporation
Advantages
status
limited liability
ability to raise investment money
perpetual existence
employee benefits
tax advantages 21

22. Disadvantages C-Corporation expensive to set up
income more heavily taxed
subject to double taxation on income
pays taxes on profits
stockholders taxed on dividends 22

23. Nonprofit Corporation
A nonprofit corporation must fall within one of four categories:
religion
charity
public benefit
mutual benefit
nonprofit corporation
a legal entity that makes money for reasons other than the owner’s profit; it can make a profit, but the profit must remain within the company