Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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.

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

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.

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

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

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

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.

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