2Entrepreneurship SECTION 33.1 The meaning of entrepreneurship What You'll LearnThe meaning of entrepreneurshipHow to identify the risks involved in entrepreneurshipThe advantages and disadvantages of entrepreneurshipHow to identify the personal characteristics and skills entrepreneurs needThe scope of small business in the American economy
3Entrepreneurship SECTION 33.1 Why It's ImportantIn this section, you will learn some important advantages and disadvantages of business ownership.
5Entrepreneurship SECTION 33.1 What is Entrepreneurship? Entrepreneurship is the process of starting and managing your own business.Entrepreneurs are people who organize, manage, and take the risk of owning and operating a business.
6Entrepreneurship SECTION 33.1 The Risk of Entrepreneurship Entrepreneurship requires a major commitment of time, money, and effort with no guarantee of success.Most entrepreneurs:Are between the ages of 25 and 40Have work experience, personal drive, financial resources, and a willingness to take business risks
7Entrepreneurship SECTION 33.1 Advantages of Entrepreneurship Some of the reasons people choose to start their own businesses are:personal freedompersonal satisfactionincreased incomeincreased self-esteem
8Entrepreneurship SECTION 33.1 Disadvantages of Entrepreneurship Disadvantages of entrepreneurship include:potential loss of incomelong and irregular hoursnecessity for strong self-disciplinepotential loss of status and invested money
9Entrepreneurship SECTION 33.1 The Importance of Entrepreneurship in Our EconomySmall businesses are those with less than 500 employees in manufacturing and less than 100 in retailing. Small businesses make up the majority of U.S. businesses, providing jobs for about 55 percent of the labor force, and accounting for 50 percent of the Gross Domestic Product.
10Reviewing Key Terms and Concepts ASSESSMENT33.1Reviewing Key Terms and Concepts1. What is entrepreneurship?2. Why is starting a new business such a risk?3. What are four advantages and three disadvantages of being an entrepreneur?4. What are three characteristics of a successful entrepreneur?5. What are three reasons small businesses are important to the economy?
11ASSESSMENT Thinking Critically 33.1 Do you think money and material gain are the most important reasons for becoming an entrepreneur? Explain your answer. If your answer is no, what do you consider the most important reasons for becoming an entrepreneur?