Entrepreneur

A person who assumes the risk to start a business with the idea of making a profit.

Entrepreneurial Characteristics  Persistent  Creative  Responsible  Inquisitive  Goal-Oriented  Independent  Self-Demanding  Self-Confident  Risk-Taking  Restless  Action-Oriented  Enthusiastic

Entrepreneurial Skills  Communication  Writing  Speaking  Listening  Human Relation  Math  Problem Solving  Decision Making  Technical  Basic Business

Interests Choose a field that interests you and will provide you with an experience you will enjoy!

Risks of Owning a Business  Working long hours  Having an uncertain income  Being fully responsible  Risking one’s investment

Benefits of Owning a Business  Being your own boss  Doing something you enjoy  Having the opportunity to be creative  Freedom to set your own schedule  Controlling your salary  Contributing to the community

Creativity You must think creatively about every aspect of your business!

Business Types

Sole Proprietor  Owned and operated by one person  Easy to create  Receives all profits, incurs any losses, and is liable for the debts of business

Sole Proprietor Advantages  Easy and inexpensive to create  Owner receives all profits  Least regulated form of ownership  Business pays no taxes. Owner pays a personal income tax, which is a lower rate. Disadvantages  Unlimited liability  Full responsibility for all debts  Owners personal assets are at risk  May have insufficient skills  Upon death, the business dissolves

Partnership  A business with two or more owners  Partners do not have to share a business equally  Partnership Agreement

Partnership Advantages  Inexpensive and easy to create  Share ideas, abilities, and financial obligations  Owners pay taxes as personal income Disadvantages  Difficulty in dissolving partnership  Personality conflicts  Partners are held liable for each other’s actions

Corporation  Registered by the state and operates apart from its owners  Lives on after the owners die or have sold interest  Ownership is represented by shares of stock, public or private

Corporation Advantages  Separate legal entities from owners  Perpetual Existence  Shareholder’s liability is limited to amount invested Disadvantages  Expensive to start and requires a lot of legal paperwork - Must hire attorneys  Owners are seemingly double-taxed  Business profits are taxed at a higher rate  Owner’s income from the business is taxed as personal income

Corporations C-Corporation  Most common for large businesses  Shareholders are owners of corp.  Required to have an elected Board of Directors to make decisions  Employee benefits S Corporation  Owners of smaller companies - liability protection of a corp., but avoid double tax  Profits are taxed once at shareholder’s personal tax rate  Shareholders liable to amount invested  Founders generally hold majority of stock

Limited Liability Company  Limited liability like a corporation, but more flexible  Pass-through income taxation like a partnership or sole proprietorship  Great for companies with a single owner

References  te/marketing_resources_entrep reneurship.html