PowerPoint Presentation Section 2.1 Pages 19-22

PowerPoint Presentation Section 2.1Section 2.1 Pages 19-22Pages 19-22

What you’ll learnWhat you’ll learn The rewards of starting your The rewards of starting your own businessown business

The risks involved in starting The risks involved in starting your own businessyour own business

How capital and investment How capital and investment are required to start an are required to start an enterpriseenterprise

2.1 Why Be an Entrepreneur?


Why it’s importantWhy it’s important You should know what to You should know what to expect when going into expect when going into business for yourself.business for yourself.

You should understand the You should understand the advantages and advantages and disadvantages of self-disadvantages of self-employment.employment.


Key TermsKey Termscompetitioncompetition

investmentinvestment

capital capital

enterpriseenterprise


Springboard

What are the rewards and drawbacks of babysitting, mowing lawns, and doing other small jobs?


I. REWARDS OF I. REWARDS OF ENTREPRENEURSHIPENTREPRENEURSHIP

A.A. Independence Independence

B.B. Personal satisfaction Personal satisfaction

C.C. Prestige Prestige


II. BEING YOUR OWN BOSSII. BEING YOUR OWN BOSS

A.A. Business owners are free to Business owners are free to make their own business make their own business decisions.decisions.


B.B. Business owners set their Business owners set their own business hours, decide own business hours, decide what products and services what products and services to offer, and choose what to offer, and choose what directions to take.directions to take.


III. DOING SOMETHING III. DOING SOMETHING YOU ENJOYYOU ENJOY


IV. HAVING THE IV. HAVING THE OPPORTUNITY TO BE OPPORTUNITY TO BE CREATIVECREATIVEA.A. Your ideas will directly Your ideas will directly

affect your business.affect your business.B.B. Entrepreneurs can shape Entrepreneurs can shape

their businesses in ways their businesses in ways that employees cannot.that employees cannot.


V. FREEDOM TO SET YOUR V. FREEDOM TO SET YOUR OWN SCHEDULEOWN SCHEDULEA. A. Entrepreneurs face great Entrepreneurs face great

demandsdemands

B.B. Entrepreneurs have the Entrepreneurs have the flexibility to determine their flexibility to determine their own hours.own hours.


C.C. Entrepreneurs have the Entrepreneurs have the option of working at home or option of working at home or at the place of business.at the place of business.


VI. CONTROLLING YOUR VI. CONTROLLING YOUR SALARYSALARYAn entrepreneur’s earnings An entrepreneur’s earnings are limited only by the are limited only by the potential of the business.potential of the business.


VII. CONTRIBUTING TO THE VII. CONTRIBUTING TO THE COMMUNITYCOMMUNITYA.A. Business owners provide Business owners provide

goods and services that goods and services that people need.people need.

B.B. Business owners create jobs Business owners create jobs and income for the and income for the community.community.


VIII. ENTREPRENEURIAL VIII. ENTREPRENEURIAL RISKSRISKSA.A. In an economy where In an economy where

businesses are in businesses are in competitioncompetition, striving for , striving for the same customer the same customer market, an entrepreneur market, an entrepreneur faces risks and costs.faces risks and costs.


B. B. Working long hours.Working long hours.

1.1.Entrepreneurs work long Entrepreneurs work long hours, especially during hours, especially during start-up.start-up.


2.2. During start-up, survival During start-up, survival often depends on daily often depends on daily decisions and there is little decisions and there is little in the way of paid help.in the way of paid help.

3.3. Entrepreneurs often work Entrepreneurs often work seven days a week.seven days a week.


C.C. Having an uncertain income. Having an uncertain income.1.1. As a rule owners make As a rule owners make

more money than more money than employees, but only when employees, but only when business is good.business is good.

2.2. When business is slow, When business is slow, earnings can be low or earnings can be low or even nonexistent.even nonexistent.


D.D. Being fully responsible. Being fully responsible.

1.1. The owner of a business The owner of a business must see that everything must see that everything gets done.gets done.

2.2. The success or failure of a The success or failure of a venture rests entirely on venture rests entirely on the owner.the owner.


E.E. Risking one’s investment. Risking one’s investment.

1.1. The biggest risk of being in The biggest risk of being in business for one’s self is the business for one’s self is the possibility of losing one’s possibility of losing one’s investment.investment.

2.2. InvestmentInvestment is the amount of is the amount of money that one puts into a money that one puts into a business as capital.business as capital.


3.3. CapitalCapital includes the includes the buildings, equipment, and buildings, equipment, and other goods needed to other goods needed to produce a product, or the produce a product, or the money to buy these things.money to buy these things.


4.4. An An enterpriseenterprise is a company is a company that is organized for that is organized for commercial business.commercial business.


End of Section 2.1End of Section 2.1

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PowerPoint Presentation Section 2.1 Pages 19-22