Rewards and Challenges of Entrepreneurship Chapter 5, Section 1.
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Transcript of Rewards and Challenges of Entrepreneurship Chapter 5, Section 1.
Rewards and Challenges of Entrepreneurship
Chapter 5, Section 1
Entrepreneurship
EntrepreneurEntrepreneur- A person who recognizes a business opportunity
and organizes, manages, and assumes the risks of starting and operating a business.
EntrepreneurshipEntrepreneurship- The process of recognizing an opportunity, testing
it in the market, and gathering the resources necessary to go into business.
Entrepreneurship (cont.)
A ventureventure is a new business undertaking that involves risk.
All entrepreneurs must be willing to take risks.
Personal Characteristics of Entrepreneurs Persistent
Willing to work until a job is done, no matter how long it takes
Risk-taking Take risks, but they are not reckless
Self-confident Believe in themselves
Personal Characteristics of Entrepreneurs Restless
Once entrepreneurs achieve their goals, they start looking for new challenges
Goal-oriented Set and achieve goals
Action-oriented Doers instead of spectators; They take action.
Personal Characteristics of Entrepreneurs Responsible
Take responsibility for their decisions and action Self-demanding
High expectations Creative
Look for new ways to solve old problems
Personal Characteristics of Entrepreneurs Independent
Want to make their own decisions Inquisitive
Conduct research and ask questions to solve problems
Enthusiastic Energetic and passionate about their pursuits
Small Business
SBA Government agency that protects the interests of
small businesses. www.sba.gov A small businesssmall business is an independently owned
business that usually has the owner as its manager.
Internet Business
Virtual businessVirtual business or dot-com companydot-com company-a business that operates on the Internet.
Makes shopping easier. Have the potential to
attract huge numbers of customers.
Rewards of Entrepreneurship
Being the boss This is the main reason people become
entrepreneurs. Doing what you enjoy Having the opportunity to be creative Building an enterprise Develop own schedule
Challenges for Entrepreneurs Obtaining funds to start the business
This is one of the biggest obstacles. Being fully responsible for the business Feeling alone and insecure about making
right decisions Work long hours Face uncertain income levels
The Impact of Small Business More than 99% of U.S. firms are small
businesses. Small businesses employ more than 50% of
the U.S. workforce. A majority of small businesses are one-
person operations that generate more than half the nation’s income.
Business Failure
About four out of five small businesses fail in their first five years.
Most failures are due to inadequate financial planning and management.