Chapter 5
Entrepreneurship
5.1: Rewards and challenges of
entrepreneurship
›  Objectives:
›  Define
entrepreneur and entrepreneurship.
›  List
at least five rewards of being an
entrepreneur.
›  Identify
at least four challenges of being an
entrepreneur.
›  Discuss
why entrepreneurs are important to the
American economy.
Entrepreneurship
›  The
process of recognizing an
opportunity, testing it in the market, and
gathering the resources necessary to go
into business.
›  Creating
and running a business venture
Figure 5.1
›  Twelve
Characteristics of Successful
Entrepreneurs
›  Rank
the importance of each of these
characteristics from 1 (most important) to 12
(least important)
›  Also,
draw a star next to the characteristics
that represent you.
›  Complete
independently in your notes
Personal Characteristics of an
entrepreneur
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Persistent
Risk-taking
Self-confident
Restless
Goal-oriented
Action-oriented
Responsible
Self-demanding
Creative
Independent
Inquisitive
Enthusiastic
Small Businesses
›  An
independently owned business that
usually has the owner as its manager.
›  Limited
geographical area
›  Employs
fewer than 500 people
Internet business
›  Operates
on the Internet.
›  Promotes
ease and convenience
›  Larger
›  Small
customer base
businesses who use the Internet
have grown by 45%.
Rewards of entrepreneurship
› Being
the boss
› Doing
what you enjoy
› Having
the opportunity to be
creative
› Building
an enterprise
Types of Businesses
›  Sole
›
proprietorships
Means they are owned and operated by one
person
›  Partnership
›
Owned and operated by two or more people
›  Corporation
Many owners.
›  Run by a chief executive officer who answers to
a board of directors
›
Challenges of
entrepreneurship
›  Getting
funds to start the business
›  Being
fully responsible for the business
›  Other
challenges for entrepreneurs
The
impact
of
small
business
›  99%
›  Employs
50% of the US workforce
›  One-person
operations (majority)
›  2/3
of all new jobs are generated by small
businesses
›  Increasing
virtual business