1.02 Comparing Entrepreneurship and Small Business Ownership

EQ: How do I distinguish among entrepreneurs, small business owners, and managers Entrepreneur – an individual who undertakes the risk associated with creating, organizing, and owning a business Entrepreneurship – is the process of starting and operating one’s own business Venture – is a business undertaking involving risk Opportunity – is an idea that has commercial value Small Business Owner – the owner of a business that was generally started to create jobs for the owners and referred to as a “mom and pop” business Manager – an employee who coordinates people, processes, and other resources of a business in order for the business to achieve success

Identify reasons that people pursue careers as entrepreneurs Being your own boss – it gives you the freedom to make your own business decisions – –you have the final word on all aspects of the operation Doing something you enjoy – a business venture normally begins with something that the entrepreneur enjoys doing – –it might be a hobby or skill that they are good at doing –the entrepreneur gets satisfaction from creating or developing the hobby into a viable enterprise Having the opportunity to be creative – –entrepreneurs are able to shape a business in ways that employees cannot – –when an entrepreneur has a creative idea, they have the power to act on it

Having the freedom to set your own schedule – –they have the flexibility to determine their own schedule – –they often have the option of working at home, at the business, or any other location that suits them Having job security – employees today are not guaranteed job security from their employers – – businesses may relocate outside the United States and the employees are left with no company to work for – –entrepreneurs control their own destiny – as long as the business is successful, they have a job

Identify reasons that people pursue careers as entrepreneurs Making more money – people who work for others are paid wages or a salary – if you work for a company and they do well, you may get a raise or a bonus – a business owner’s earnings are limited by the potential of the business Being recognized within the community – business ownership carries with it a certain amount of prestige – entrepreneurs have taken on a responsibility that involves hard work, daring, and know-how – entrepreneurs make an economic contribution to the community through their investment and creation of jobs