1. Chapter 5 Entrepreneurship
5.1
Rewards and Challenges of Entrepreneurship

2. Entrepreneurship What is an entrepreneur? What is entrepreneurship?
Someone who recognizes a business opportunity and organizes, manages, and assumes the risk of starting and operating a business.
What is entrepreneurship?
The process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to go into business.

3. Characteristics 12 Main Characteristics of Entrepreneurs Persistent
Risk Taking
Self-Confident
Restless
Goal-Oriented
Action-Oriented
Responsible
Self-Demanding
Creative
Independent
Inquisitive
Enthusiastic

4. Small Business
Small Business: an independently owned business that usually has the owner as its manager.
Small businesses usually serve a limited geographical area and employ less than 500 employees.
SBA: Small Business Administration: Created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.

5. Internet Businesses
Virtual Business/Dot-Com Business: a business that operates on the internet.
Make shopping easier and more efficient
Potential to attract a huge amount of customers
Anyone with an internet connection is a potential buyer
Small businesses that use the internet have grown more than 45% faster than those who do not

6. Rewards of Entrepreneurship
Be your own boss
You are in charge
This is the main reason most people become entrepreneurs
No consulting with others
Do what you enjoy
Business adventure usually start with something that the person enjoys to do
New business owners usually get satisfaction from developing the new enterprise
Opportunity to be creative
Follow your own procedures
Shape it the way you want to
Creative power
Building an enterprise
Many entrepreneurs work in a related business before starting their own
Decide to buy a current business or develop a new one

7. Challenges of Entrepreneurship
Getting funds to start
Biggest hurdle is obtaining financing
Most have to borrow money to get started
Financial institutions are concerned about the chances of success
Being fully responsible
Responsible for everything
All duties must go through you
Longer hours
Harder decisions
Loneliness
Responding to change

8. Impact of Small Business
More than 99% of all businesses in the United States is considered a small business.
2/3 of new jobs are generated by small businesses.
Employ more than 50% of the workforce in the U.S.

9. Homework Write out Ch. 5 definitions Review questions on page 81, 1-3
Complete 5.1 Reading Activity and Graphic Organizer.
Quiz Friday