Entrepreneurship

What is an entrepreneur?

An Entrepreneur is a person who recognizes a business opportunity and organizes, manages, and assumes the risks of starting and operating a business.

Entrepreneurship is the process of recognizing an opportunity, testing it in the market, and gathering the necessary resources to go into business.

Would You Rather…

…have a secure job making a steady income, or run/start your own?

What are some reasons to become an entrepreneur?

Rewards of Entrepreneurship

Being The Boss The ability to be in charge is the main

reason people become entrepreneurs Unlike people who run corporations and

partnerships, entrepreneurs don’t have to consult with others before making a decision

Rewards of Entrepreneurship

Doing What You Enjoy A business venture typically starts with

an activity that the entrepreneur enjoys Someone who enjoys cooking might

start a catering business, someone who rides bikes may open a bike shop, etc.

The new business owner gets satisfaction from developing the enterprise

Rewards of Entrepreneurship

Having the Opportunity to Be Creative Most people who work for others follow

procedures Entrepreneurs make procedures They are able to shape a business in

ways employees can’t▪ Especially true with daring or creative ideas▪ A business owner with a creative idea has the

power to act on it

Rewards of Entrepreneurship

Building an Enterprise Many successful entrepreneurs work in a

related business before starting their own company

People who decide to open a business must consider whether to buy an existing company or start a new one

They must research the viability of the venture and choose the form of business to start▪ Sole proprietorship, partnership, corporation,

etc.

Other Reasons for Entrepreneurship

Entrepreneurs enjoy developing their own schedule Many run home-based businesses, such

as consultancies or editing, housekeeping, and bookkeeping services

They make an economic contribution to their community through investment and the creation of jobs

Are rewarded financially and personally for assuming risk

Why A Virtual Business?

According to American City Business Journals, small businesses that use the internet have grown more than 45% faster than those that do not

Challenges of Entrepreneurship

Virtual Business

Challenges of Entrepreneurship

There are rewards to becoming an entrepreneur, however there are some challenges that business owners deal with in order to be successful

Challenges of Entrepreneurship

What are some challenges of Entrepreneurship that one may/will encounter?

Challenges to overcome

Challenges of Entrepreneurship

Getting Funds to Start the Business One of the biggest obstacles is obtaining

financing Most people must borrow money to start

their business Its often difficult to get loans from

financial institutions Entrepreneurs are concerned about

whether the business would succeed and whether or not they would be repaid

Challenges of Entrepreneurship

Being Fully Responsible for the Business Business owners are responsible for

more than just decision making▪ They must see that everything gets done

from sweeping the floors and paying the bills, to hiring employees and making repairs▪ Duties include handling financial records as

well as training employees

Other Challenges of Entrepreneurship

Entrepreneurs also face the challenge of feeling alone and insecure about making the right decisions They work long hours, especially during start-up

They face uncertain income levels and the risk of losing their investment if the business fails About four out of five small businesses fail in their

first five years Most failures are due to inadequate financial

planning and management and a poor response to change

Challenges of Entrepreneurship In partners or groups of three, answer

how a potential entrepreneur could overcome these challenges: Getting funds to start the business Being fully responsible for the business Feeling alone and insecure about making

the right decisions Working long hours, especially during

start-up Uncertain income levels

Young EntrepreneursVirtual Business

Young Entrepreneurs

More than ever, teens are starting businesses all over the country

The Small Business Administration even offers a teen business link at its Web site (www.sba.gov) that helps teens determine if their ideas have potential and helps put them on a path toward entrepreneurship

Young Entrepreneurs

In groups of three, list some weaknesses that teens have in being successful with their own business.

Young Entrepreneurs

In groups of three, list some key things that young entrepreneurs should have, or the support they would need, in order to succeed in creating their own business.

The Small Business Administration

Search the SBA web site www.sba.gov for tips, hints, and other miscellaneous information to help with your business

Twelve Characteristics of Successful Entrepreneurs

Virtual Business

Personal Characteristics of Entrepreneurs

Most entrepreneurs have similar characteristics

The SBA (Small Business Administration) created a checklist to help people see if they have the recommended traits for a career in entrepreneurship

1. Persistence

Entrepreneurs are willing to work until a job is done, no matter how long it takes.

2. Risk-Taking

Entrepreneurs take risks, but they are also not reckless.

What is the difference between reckless risk-taking and responsible risk-taking?

3. Self-Confidence

Entrepreneurs believe in themselves.

4. Restless

Once entrepreneurs achieve their goals, they start looking for new challenges. Constant goal-setting

5. Goal-Oriented

Entrepreneurs set and achieve goals. Long-Term Goals Short-Term Goals

6. Action-Oriented

Entrepreneurs are doers instead of spectators. They take action.

7. Responsible

Entrepreneurs take responsibility for their decisions and actions.

8. Self-Demanding

Entrepreneurs have high expectations.

9. Creative

Entrepreneurs look for new ways to solve old problems.

10. Independent

Entrepreneurs want to make their own decisions.

11. Inquisitive

Entrepreneurs conduct research and ask questions to solve problems.

12. Enthusiastic

Entrepreneurs are energetic and passionate about their pursuits.

Do you have what it takes?

Log onto www.sba.gov and see if you have the recommended traits for a career in entrepreneurship.