Employability Characteristics of a Successful Worker in the Modern Workplace
Career Development Relating to Entrepreneurship Opportunities
Class Notes Key
The United States is often referred to as the “land of opportunity”. Our country’s economic system is
based on the free enterprise system, which provides everyone an equal opportunity to make individual
dreams a reality. This type of economic system is the foundation for entrepreneurship.
Entrepreneurship is the process of taking part in the organization, operation, and assumption of risks
involved in starting a business venture. A(n) entrepreneur is an individual who takes the role of
creating, organizing, and owning a business. In many independently owned small businesses, the owner
usually also serves as the manager.
Over 25 million small businesses exist in the United States. These small businesses employ more than
half of the total workforce, produce about half of the private sector output, generate more than half of
the nation’s income, and are the principal source of new jobs.
THE FREE ENTERPRISE SYSTEM
Six major factors on which the free enterprise system in the United States exist include:
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private ownership & control of productive resources
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a free market
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the profit motive
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supply & demand
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competition
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limited government involvement
Private ownership is the opportunity for all citizens to own resources and to be able to decide how to use
those resources. Examples of productive resources include: land, labor, equipment, and capital. Profit
is the amount of money made in excess of the cost of producing a product or resource. Risk involves
making a decision when the outcome of an event is unknown. The amount of available resources for
sale is supply. The amount of materials and services consumers are willing to buy create the demand for
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the products or services. Competition is the right of any individual or business to enter the same
business as others and compete for a share of the market.
Types of business ownership in the free enterprise system include:
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proprietorship
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partnership
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corporation
A proprietorship is a business owned by only one person. Advantages of this type of business structure
include:
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the ease of starting a business;
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operating the business according to personal desires;
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the freedom of the proprietor to make decisions; and
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not having to share the profits of the business with others.
A disadvantage of this type of business structure is unlimited liability, which means that the business
owner must take full personal responsibility for the business’ debts.
A business started by two or more people is a partnership. In this type of business structure, the owners
contribute unique skills and experiences to the business, resulting in its increase in efficiency and its
likelihood to succeed. However, should one of the partners leave the business, the business must be
reorganized.
A corporation is an example of the most complicated type of business structure. In this type of business
structure, the sale of stocks or shares of ownership makes up the ownership of the corporation. In
return, the stockholder receives a share of the profits and votes on how the business operates. A major
advantage of this type of business structure is its limited legal liability, which means that its
stockholders are only financially responsible for the amount of money they have invested.
Contributions of small businesses into the free enterprise system include the:
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introduction of new and innovative ideas into the economic system;
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competition within the free enterprise system;
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encouragement of businesses to form new business groups;
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improvement or expansion of product lines; and
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development or creation of new products.
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ENTREPRENEURS AND SELF-EMPLOYMENT
Characteristics of successful entrepreneurs include:
desire to be a self starter
goal setting and achieving
self-motivation
anticipation
flexibility
risk taking
competitiveness
researching
innovative thinking
planning
decision-making skills
good management skills
When considering a community in which to locate a business, an entrepreneur must consider:
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aesthetics of the community
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economic base of the community
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demographics
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labor supply
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economic incentives
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competitors
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characteristics of the location
For some businesses, operating from the home may be an option to renting an office space. Businesses
that require minimal personal contact with customers are good possibilities for this type of business
arrangement. However, other factors to consider for this type of business arrangement include the:
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type of business
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need for space and equipment
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effects on others living within the household.
An important consideration in establishing a price for a product or service is to price the product or
service to cover costs while making the product available and affordable to the consumers.
Zoning involves the designation a city has set on an area regarding its use or purpose, which includes
those designated for residential, commercial, industrial, or public use. Licenses are required for certain
types of professions or businesses to protect consumers from unskilled or unqualified business operators.
Additionally, a business permit may be required from a local governmental agency to gain permission to
operate and run a business.
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Money needed for financing the startup of a business may be obtained from:
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personal savings accounts;
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family and friends;
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financial lending institutions, and/or
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investors.
When borrowing money to finance the startup costs of a business, all agreements should be in the form
of (verbal / written) agreements, and should include a record of the following information:
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the amount of money being borrowed and financed;
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the rate of interest at which the money is borrowed; and
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the method of repayment.
Professionals to whom an entrepreneur of a new business can seek advice include:
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financiers;
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lawyers;
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accountants; and
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insurance agents.
BUSINESS MANAGEMENT
Managerial duties within a business include providing direction and establishing goals, as well as giving
oversight to:
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employee relations;
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customer relations; and
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financial management.
One of the responsibilities of a business manager is to hire effective employees, supervise and manage
existing employees, and terminate unproductive employees. A manager that is effective in working with
people develops respectability and credibility among employees, thus nurturing a pleasant working
environment that results in higher productivity.
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According to management researchers Thomas Peters and Robert Waterman, managerial excellence
occurs when managers:
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take action, rather than analyze plans to death;
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listen to their customers and put themselves in their customers’ shoes;
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encourage their employees to act independently, be innovative, and treat the business as if it
were their own;
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stress respect for persons as individuals;
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instill commitment to values and objectives by keeping in touch with all employees;
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keep the business focused on its mission and what it does best;
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keep their organization simple, flexible, and efficient; and
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keep their operations under control and pay attention to detail.
A decline in managerial respect resulting in a loss of employee confidence may occur due to:
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indecisive decision making;
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unclear focus or goal;
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short-term planning instead of envisioning the big picture;
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focusing more on the managerial position than on managing;
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lack of employee support;
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treating employees as a handicap to the company instead of as an asset; and
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an erosion of trust and the image of integrity perceived by those who work within the business.
DEVELOPING ETHICAL BUSINESS BEHAVIOR
The development and implementation of a(n) ethical guide for a business should be a part of the
direction, goals, expectations, and mission of a business.
This can help educate employees and
supervisors of their expectations within the business and reduce the likelihood and occurrence of
unethical activity. Employers and employees that have a clear set of guidelines along with a concise
mission statement will work together to reduce repercussions when an employer or employee violates
business policy.
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SUMMARY
Thanks to the free enterprise system, Americans are assured the opportunity to indulge their
entrepreneurial spirit and pursue the establishment of their own businesses. Research and careful
decision-making regarding the type of business, business location, product or service offered, and the
price of the product or service, are important in ensuring the success of a new business.
In small businesses, the entrepreneur, owner, and manager are often (the same person / different
people). In addition to starting a business, an entrepreneur is also usually responsible for establishing
directions and goals, relations among employees and customers, and the financial aspects of the
business. As an entrepreneur, a person not only has the satisfaction of bringing an idea to fruition, but
also the contentment of knowing that his/her efforts can have a positive impact on the economy, clients
served, and people employed.
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