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

2. Entrepreneurship?

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

4. A Raleigh Entrepreneur’s Story

5. Characteristics of Entrepreneurs

6. Goal Oriented
Work hard to achieve ______ results.

7. Knowledgeable
__________ and well ____________.

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

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

10. Innovative
Find ways to _____________ and produce better work and gain the confidence of __________.

11. Responsible
Accept the ____________ 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 ____________?
Do you get along with members of your family who will be ____________ with the business?
Do you share the same _________ for the business?
Can you leave the business __________at work when you go home?

14. 2. Buy an existing business
Good _____________ if you do not have a great deal of business experience.
May be less __________ because it is already established.
Will you keep the current _________ and _____________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
_______ 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 ______________

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