1. Entrepreneurial Concepts
Retail Management

2. What You Will Learn The meaning of entrepreneurship
How to identify the risks involved in entrepreneurship
The advantages and disadvantages
How to identify the personal skills and characteristics necessary for entrepreneurs
The scope of small business in the American economy

3. What is entrepreneurship?
The process of starting and managing your own business
Entrepreneurs contributions to economy
Henry Ford
Ray Kroc
Steve Jobs
Want to be own bosses

4. The Risks Involved Major commitment
Time
Money
Effort
60% of those who start a business are between ages of 25-40
Work experience
Personal drive
More than 3,000 businesses started each week in the U.S.
2 out of 3 close within first four years

5. Entrepreneurship Advantages Disadvantages Personal Freedom
Increased Income
Personal Satisfaction
Increased Self-Esteem
Potential Loss of Income
Long Hours
Irregular Hours
Strong Self Discipline

6. Do you have what it takes?
Can you make your own decisions?
Do you like competition?
Can you adapt to changing conditions?
Are you willing to work hours a day, weekends, and some holidays?
Are you prepared to lower your standard of living for a while?
Are you prepared to lose your savings?

7. Importance to Economy Small Businesses
Less than 500 employees in manufacturing
Less than 100 in retailing
Make up a majority of businesses in U.S.
55% of labor force
Offer choices of goods and services
Help improve products

8. Logistics of Business Ownership
Retail Management

9. What You Will Learn How to discuss business ownership opportunities
How to identify forms of business ownership
The legal steps to take in establishing a business

10. Business Ownership Opportunities
150,000 businesses are started each year
4 ways to enter a business
Develop a new business
Purchase a franchise
Purchase an existing nonfranchise business
Take over a family business

11. Forms of Business
Sole Proprietorship
Partnership
Corporation

12. Sole Proprietorship Most common form of business ownership Advantages
70% of all U.S. businesses
Advantages
Easy to start
Make own decisions
Freedom from government regulation
Disadvantages
Unlimited Liability-financial liability is not limited to your investment in business
Use personal assets

13. Partnership
Legal agreement between two or more people to be jointly responsible for the success and failure of a business
Least common form of business ownership (10%)
Advantages
Little regulation; taxed less heavily
Fairly easy to establish
Combines skills of owners
Disadvantages
Decision making is harder because more people are involved
Business dissolved if one partner dies
Responsible for each others debts

14. Corporation
Business that is chartered by a state and legally operates apart from the owner
Most complicated form of business
Governing bodies called boards hire directors and managers to protect interest of stockholders
Stock is sold to stockholders (people who actually own the corp. with limited liability)

15. Legal Steps in Establishing Your Business
File a DBA (Doing Business As)
Sole Proprietorship or partnership
Registration process by which your county government officially recognizes that your business exists
Filing Fee; protects name of business in county
Articles of Incorporation
Identifies the name and address of your business, its purpose, the names of the official directors, and the amount of stock that will be issues to each director