1. Objective 3.01: Factors Influencing Entrepreneurship
This also combines 2.01

2. Entrepreneurship?

3. What is Entrepreneur?
A person who assumes the risk of starting and operating a business for the purpose of making a profit.

4. A Raleigh Entrepreneur’s Story

5. Characteristics of Entrepreneurs

6. Goal Oriented
Work hard to achieve good results.

7. Knowledgeable
Intelligent and well informed.

8. Good Planning Skills
Can decide in detail how to do something before starting.  

9. Calculated Risk Taker
Good at evaluating the benefits against the costs in order to be successful.

10. Innovative
Find ways to improve and produce better work and gain the confidence of customers.

11. Responsible
Accept the consequences of decisions.

12. Acquiring a Business…

13. 1. Take over a family business
Do you have the ability to work for a member of your family?
Do you get along with members of your family who will be involved with the business?
Do you share the same goals for the business?
Can you leave the business problems at work when you go home?

14. 2. Buy an existing business
Good alternative if you do not have a great deal of business experience.
May be less risky because it is already established.
Will you keep the current name and location of the business or change?

15. 3. Start your own business
Do I have the motivation and persistence to start from the “ground up”?
Do I have sufficient knowledge of basic operations to undertake the business in which I am interested?
Do I have enough financial resources to start from “ground up?”

16. Types of Businesses

17. 1. Sole Proprietorship

18. Sole Proprietor Advantages Disadvantages
START UP: Easy
PROFITS: to owner
TAXES: Business pays no taxes – all taxes are paid through the owner’s individual taxes
GOV REG: Limited government regulations
CONTROL: Direct control
LIABILITY: Unlimited for owner
CAPITAL: Difficult to finance
DISSOLUTION: Limited life (death of owner usually equals death of business)

19. 2. Partnership
Two or more owners

20. Partnership Advantages Disadvantages PROFITS: Shared START UP: Easy
LIABILITY: Unlimited for partners
CAPITAL: Difficult to finance
DISSOLUTION: Limited life (death of partner may mean end of partnership)
CONTROL: Shared
START UP: Easy
TAXES: Business pays no taxes – all taxes are paid through the owners’ individual taxes
GOV REG: Limited government regulations

21. 3. Corporation
Owned by stockholders

22. Corporations Disadvantages Advantages START UP: Expensive to form
PROFITS: Profits depend on size of investment
TAXES: Double taxation (on income of corporation and shareholders pay taxes on dividends)
GOV REG: High government regulation
CONTROL: Lack of control by owners (CEO makes decisions)
LIABILITY: Limited liability
CAPITAL: Ease in raising capital $$$$
DISSOLUTION: Continuous existence; ownership transferred through sale of stock

23. 4. Franchise
Entrepreneurs purchase the rights to open and run a location of a larger company.

24. Franchise Disadvantages Advantages
START UP: Training and guidance provided; an established national name; reduced risk of failure
LIABILITY: Liability is limited
DISSOLUTION: Continuous existence
PROFITS: Percentage of sales goes to Franchiser
CAPITAL: Cost to purchase is high
TAXES: similar to corporations
GOV REG: High
CONTROL: Lack of freedom in running business