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Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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Page 1: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

Chapter 5 Entrepreneurship

5.1

Rewards and Challenges of Entrepreneurship

Page 2: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

Entrepreneurship

What is an entrepreneur? 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.

Page 3: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

Characteristics

12 Main Characteristics of Entrepreneurs Persistent Risk Taking Self-Confident Restless Goal-Oriented Action-Oriented

Responsible Self-Demanding Creative Independent Inquisitive Enthusiastic

Page 4: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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.

Page 5: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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

Page 6: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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

Page 7: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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

Page 8: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

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.

Page 9: Chapter 5 Entrepreneurship 5.1 Rewards and Challenges of Entrepreneurship

Homework

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

Organizer. Quiz Friday