CHAPTER 5Entrepreneurship and

Small Business

WARM UP

What Characteristics does an entrepreneur have ?

Why might someone become an entrepreneur?

INTRODUCTION Entrepreneurship and small businesses bring vital energy and innovation to the economy.

The risks involved energize entrepreneurs and small business owners to become successful.

WHAT IS ENTREPRENEURSHIP?

A business started by someone who notices a need for a product or a service.

WHO IS AN ENTREPRENEUR? A person who recognizes a

business opportunity and organizes and assumes the risks of a business enterprise

Every year, thousands of entrepreneurs start new businesses. Many stay the same size, others will grow to become giant companies

Many fail within few years.

ADVANTAGES OF ENTREPRENEURSHIP Satisfaction from becoming a success.

Showing expertise and skills

Working from home Gaining profit

DISADVANTAGES OF ENTREPRENEURSHIP

Total responsibility for the business

Long working hours Financial risk

WHAT IS VIRTUAL BUSINESS? A business operating on the internet.

GROUP ACTIVITY List some of the inconveniences you

experience through your day. Try to invent goods and services to help

eliminate or lessen the inconvenience.

GROUP ACTIVITY Everyone is an expert on something.

Think about what you know a lot about. Pair or group, each group uses their

expert knowledge to find an entrepreneurial venture.

Once a business is agreed upon, each group will prepare for a mock press conference in which the business idea is launched .

The rest of the class are reporters who ask each group.

SMALL BUSINESSES

Small business: an independently owned business that usually has the owner as its manager, serves a certain geographical area, employs fewer than 500 people and is not dominant in its industry. ( by the SBA)

ADVANTAGES Being the Boss

Opportunity to offer services large companies cannot offer

Ease of formation

DIS ADVANTAGES Great responsibility for business

although most of the time there is no experience

Effect of change

Managerial skills needed

Inadequate Financial planning