Presentation on theme: "Chapter 37 What is Entrepreneurship?. Entrepreneurship Entrepreneurship - Is the process of starting and managing your own business. Entrepreneurs – are."— Presentation transcript:
Entrepreneurship Entrepreneurship - Is the process of starting and managing your own business. Entrepreneurs – are people who attempt to earn money and profits by taking the risk of owning and operating a business
Activity #1 Adv. vs Disad. of Entrepreneurship AdvantagesDisadvantages
Advantages of Entrepreneurship Personal Freedom – You are Your own BOSS! Increased Income – You make profits! You make all of the decisions Increased Self Esteem
Disadvantages of Entrepreneurship Take a huge financial RISK! You do all of the work You may lack special skills and abilities. You may run out of money.
Activity #2 – What makes an Entrepreneur Successful? Do self Evaluation on page 491 List the characteristics that you think make a good entrepreneur.
Characteristics of a Successful Entrepreneur Strong Organizational Skills Drive or Ambition Leadership Ability Skills to operate the business
Statistics About Businesses 60% of those who start a business are between the ages of 25 and 40. 8,400 new businesses are started each week. Small businesses produce 50% of the GDP 420,000 businesses are started each year.
Types of Business Ownership Sole Proprietorship – owner Partnerships – more than owners Corporations – chartered by the state to operate
Sole Proprietorship Is a business owned by 1 owner AdvantagesDisadvantages
Partnership Is a legal agreement between 2 or more people to be jointly responsible for the success or failure of a business. AdvantagesDisadvantages
Corporation A business that is chartered by a state & legally operates apart from the owners. Stockholders Board of Directors Articles of Incorporation
Adv. & Disadvantages of Corporations Advantages Disadvantages
What is a Franchise? Franchise – a legal agreement to operate a business in the name of a recognized company. Franchisee – the person purchasing the franchise Franchisor – the owner of the recognized company
Adv. & Disadvantages of Franchises Advantages Disadvantages