ENTREPRENEURSHIP
Objectives
• Define Entrepreneurship
• Describe the advantages of entrepreneurship
• Explain the risks of entrepreneurship
• List the characteristics and skills of entrepreneurs
• Understand the importance of small business in various
economies
Standard
• Marketing Advanced Strategies, Standard 2: Explain why
entrepreneurship is important to the U.S. economy.
Compare and contrast the role of the entrepreneur to that
of a manager.
What is Entrepreneurship?
• The process of starting & operating your own
business
• People who create, launch, organize, and
manage a new business and take the risk of the
business are entrepreneurs
• Henry Ford introduced the mass production of vehicles
by making them affordable to average people
• William Hewlett & David Packard started a small
business in Packard’s garage
• They invented floppy disks & the first pocket calculator
Advantages of Entrepreneurship
• Personal
• Set own work
Freedom
schedule
• Personal
• Make own
Satisfaction
decisions
• Increased self• Financial
esteem
Rewards
• Increased Income
Risks of Entrepreneurship
• High level of
• Long and
stress
• Risk of failure
• Possible
setbacks
• Potential loss of
income
irregular hours
• Need to handle
multiple tasks
• Need for selfdiscipline
Characteristics of Successful
Entrepreneurs
• Determination
• Creativity
• Self-motivation, self- • Willingness to work
discipline, & selfhard
confidence
• Spirit of adventure
• Strong organizational• Good social skills
skills
• Leadership ability
Marketing & Entrepreneurship
• Entrepreneurs should have marketing
knowledge
• They will have an advantage over those who do
not
• Why would entrepreneurs who have a good
understanding of marketing have an
advantage over those who do not?
Trends in Entrepreneurship
• 80% of new jobs created annually come from
business that are less than 5 years old
• 90% of all U.S. businesses have fewer than 20
employees
• Firms with fewer than 500 employees were
responsible 50% of the GDP
• About 1 in 10 adults in the U.S. plan to start a
new business
• As many as 25% of all U.S. workers are selfemployed
Trends in Entrepreneurship
• Availability of technology
• Increased global communication
• Rise of the Internet and e-commerce
• Increasingly diversified society & market
Do you have what it takes?
• Turn to page 782 in your text book.
• Number 1-19
• Read each question CAREFULLY and answer yes or no
based on how you feel.
• Next, create a diagram with 3 circles
• Label each circle with these words: Physical, Emotional, Financial
• Take numbers 9-19 and place the number in the appropriate circle,
if some of them overlap places, please place them in the
appropriate overlapping circle(s)