Your Potential as an Entrepreneur Why Be an Entrepreneur Chapter 2, Section 1

Rewards of Entrepreneurship The greatest rewards of owning a business are intangible Independence Personal satisfaction Prestige Being Your Own Boss Freedom to make business decisions Final say Determine hours of operations, products offered, and direction of expansion

Rewards of Entrepreneurship Doing Something You Enjoy Create and develop a business around a special interest Having the Opportunity to Be Creative Can shape the business Having the Freedom to Set Your Own Schedule Flexibility to determine schedule Can work at home, office, or location that suits them

Rewards of Entrepreneurship Having Job Security Control their own destiny Successful business = job security Making More Money Business owner’s earnings are limited only by the potential of the business Being Recognized Within the Community Economic contribution Investments Job creation

Risks of Entrepreneurship Competition – the rivalry among businesses for consumer dollars Includes long hours, uncertain income, responsibility, and the potential loss of money Working Long Hours Especially during the start-up period Having an Uncertain Income No regular paycheck May not have benefits Such as health insurance and vacation time

Risks of Entrepreneurship Being Fully Responsible The owner is ultimately responsible for all tasks that need to be completed Risking One’s Investment Biggest risk is possibly losing one’s investment Investment: the money a person puts into their business as capital Capital: includes the buildings, equipment, tools, and other goods needed to produce a product or the money used to buy these things The venture must be up and running before counting on earnings