What Is Entrepreneurship??
Entrepreneurship is the process of starting and
managing your own business.
Entrepreneurs are the people that organize,
manage, and take the risk of owning their own
business. **Do you know any??
Starting a new business is a risk because it requires
a major commitment of time, money, and effort.
Approximately 60% of those who start a
business are between the ages of 25 and 40.
**Why is that??
More than 3,000 new businesses are started
each week in the U.S. Studies show that two
out of three new firms close their doors within
four years.
Advantages of being an entrepreneur:
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Personal freedom
Personal satisfaction
Increased income
Increased self-esteem
Disadvantages of being an entrepreneur:
• Potential loss of income
• Long, irregular hours
• High level of stress
• Administer self-evaluation
The Importance of Entrepreneurship in Our
Economy
• Small businesses are those with less than 500 employees in
manufacturing and less than 100 in retailing.
• They provide jobs for about 55% of the labor force.
• Eighty percent of the new jobs created annually come from
businesses that are less than five years old.
• Small businesses produce 50% of the GDP** What’s that??
Business Ownership Opportunities
There are four ways to enter business:
• Develop a new business
• Purchase a franchise business
• Purchase a non-franchise business
• Take over a family business
Business organization
Sole-proprietorship:
• Owned and operated by one person
• Most common form of business ownership
• Seventy percent of all U.S. businesses fall into
this category
Sole proprietorship
Advantages
• Get all profits
• Easy to start
• You make all decisions
• Generally taxed less than other forms of
business
• More freedom from government regulation
Sole proprietorship
Disadvantages
• Responsible for all debts and legal judgements
against business
• Unlimited liability What does this mean??
The Partnership
• Legal agreement between two or more people
to be jointly responsible for the success or
failure of a business
• Least common form in U.S. – just 10% of all
businesses
• Usually share profits proportionately to the
amount of investment
• Fairly easy to establish-relatively little
regulation
Types of partnerships
• General partnerships
**Each partner shares in the profits and
losses
**Unlimited liability
**Profits are taxed as personal income
• Limited partnerships
**Each limited partner is liable for debts
only up to the amount of investment
**Must have one general partner who has
unlimited liability