Entrepreneurship

1. Entrepreneurship

2. What is an entrepreneur?

3. 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.

4. Would You Rather… • …have a secure job making a steady income, or run/start your own?

5. What are some reasons to become an entrepreneur?

6. 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

7. 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

8. 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

9. 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.

10. 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

11. 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

12. Virtual Business Challenges of Entrepreneurship

13. 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

14. Challenges of Entrepreneurship • What are some challenges of Entrepreneurship that one may/will encounter?

15. Challenges to overcome

16. 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

17. 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

18. 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

19. 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

20. Virtual Business Young Entrepreneurs

21. 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

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

23. 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.

24. The Small Business Administration • Search the SBA web site www.sba.gov for tips, hints, and other miscellaneous information to help with your business

25. Virtual Business Twelve Characteristics of Successful Entrepreneurs

26. 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

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

28. 2. Risk-Taking • Entrepreneurs take risks, but they are also not reckless. What is the difference between reckless risk-taking and responsible risk-taking?

29. 3. Self-Confidence • Entrepreneurs believe in themselves.

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

31. 5. Goal-Oriented • Entrepreneurs set and achieve goals. • Long-Term Goals • Short-Term Goals

32. 6. Action-Oriented • Entrepreneurs are doers instead of spectators. They take action.

33. 7. Responsible • Entrepreneurs take responsibility for their decisions and actions.

34. 8. Self-Demanding • Entrepreneurs have high expectations.

35. 9. Creative • Entrepreneurs look for new ways to solve old problems.

36. 10. Independent • Entrepreneurs want to make their own decisions.

37. 11. Inquisitive • Entrepreneurs conduct research and ask questions to solve problems.

38. 12. Enthusiastic • Entrepreneurs are energetic and passionate about their pursuits.

39. Do you have what it takes? • Log onto www.sba.gov and see if you have the recommended traits for a career in entrepreneurship.