Entrepreneurship Chapter 1 Review

Entrepreneurship Chapter 1 With Review

by NATHANAEL ARKFELD

​Entrepreneur Vocab

• Entrepreneur – an individual who undertakes the risk associated with creating, organizing, and owning a business

• ​Venture – is a business undertaking involving risk

• ​Opportunity – is an idea that has commercial value

• ​Small Business Owner – the owner of a business that was generally started to create jobs for the owners and referred to as a “mom and pop” business

• ​Manager – an employee who coordinates people, processes, and other resources of a business in order for the business to achieve success

What Are The Reasons That People

Pursue Careers As Entrepreneurs?​

​Being your own boss – it gives you the freedom to make your own business decisions​

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Doing something you enjoy – a business venture normally begins with something that the entrepreneur enjoys doing

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Having the opportunity to be creative – most people who work for someone else is following their procedures; while entrepreneurs create their own

​What Are The Reasons That People

Pursue Careers As Entrepreneurs?

Having the freedom to set your own schedule – Even though entrepreneurs have demands on their time, they have the flexibility to determine their own schedule​

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Having job security – Employees today are not guaranteed job security from their employers, entrepreneurs control their own destiny

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Make more money – People who work for others are paid wages or a salary

​What personality traits are associated

with successful entrepreneurs?

• Persistent – willing to work until a job is done, no matter how long it takes

• Creative – they look for new ways to solve old problems

• ​Responsible – they do not pass the buck

• ​Inquisitive – they want to know as much as possible about whatever affects their venture

• ​Goal-oriented – they set and achieve goals

• ​Independent – they want to make their own decisions

​What personality traits are associated

with successful entrepreneurs?

• ​Self-demanding – they have high expectations

• ​Self-confident – they believe in themselves

• ​Risk-taking – they take risks, but they are not reckless

• ​Restless – once they achieve their goals, they begin looking for new challenges

• ​Action-oriented – they are doers as opposed to spectators

​Skills Needed for Entrepreneurial Success

Communication skills – person-to-person, telephone, and written

communication skills

​Math skills – they use basic math skills to budget, keep records, make decisions and calculations, and put together financial statements

​Problem-solving skills – they need to be able to come up with logical ideas to solve problems

​Technology and computer skills – computer skills are essential in almost any business

​Decision-making skills – they must be able to choose the best option from

among many

​Skills Needed for Entrepreneurial Success

Organizing and planning skills – they must be expert organizers and planners​

​Teamwork skills – they need teamwork skills to coordinate and manage work teams

​Social skills – they need social skills to interact well with employees, customers, and vendors

​Adaptability skills – they should be adaptable because they business and economic environment is constantly changing

​Basic business skills – they should have a basic understanding of how the

economy works and an understanding of fundamental concepts of finance, marketing, and management

​Risks/Disadvantages of Being an Entrepreneur

​Working long hours

long hours are the norm for entrepreneurs, especially during the start-up period

​Having an uncertain income

most businesses do not make a profit right away

​Being fully responsible

the success or failure of the venture rests entirely on the owner

​Risking one’s investment –

the biggest risk is the possibility of losing one’s investment

​Trends in entrepreneurship

Internet businesses – online businesses have the potential to attract a huge number of customers​

​Service businesses –

dominant type of businesses in the United States economy

even if a company sells a product, they also provide a service to the customers

​Home-based businesses –

due to technology a home-based business can have an image that is just as professional as that of a large corporation

​Socially responsible nonprofit businesses

​start a business in order to better society

​Trends in entrepreneurship

Outsourcing –

is contracting with other companies for services​

​Strategic Alliances –

Join with a larger company to purchase items in large quantities or help support a product

​Corporate Ventures –

is a new venture started inside a large corporation

​These are spin-off companies

​Reasons that entrepreneurs need to be aware of industry trends and technological developments

​By observing the world around you , you can develop new

ideas for product creation

​Popular trends can provide guidance in product

development

​Technology and industry trends can assist in the business

operations