Exploring Entrepreneurship  Entrepreneurship is the process of starting a new business.  Just having a good idea is not enough. Entrepreneurs must be motivated to work hard.  Thinking like an entrepreneur can also help you do well at school, home, and in your community. When you think you show that you are creative, independent, and responsible.  Three ways to think like an entrepreneur even when you are not running your own business are.  Observe. Keep on the lookout for chances to learn new skills and accept new responsibilities.  Listen. Pay attention to what others have to say.  Think. Instead of complaining about a problem, analyze it. Then suggest possible solutions. 1 ChapterThink Like an Entrepreneur 17

Recognizing Entrepreneurial Rewards  Since entrepreneurs have the final say in all business decisions, they are ultimately responsible for success or failure of their businesses.  An entrepreneur must evaluate whether the potential rewards are worth more than the drawbacks and risks they take.  A successful business lets entrepreneurs earn enough so that they fulfill their needs and wants without depending on others.  Entrepreneurs also benefit in other ways:  Entrepreneurs achieve pride and personal satisfaction from starting and growing a business.  Entrepreneurs get to make your own rules.  Being an entrepreneur opens up opportunities that help make their community and the world a better place in which to live. 2 ChapterThink Like an Entrepreneur 17

Recognizing Entrepreneurial Risks  Risk refers to the chance of danger or loss. In terms of business, it usually refers to the risk of losing money.  An entrepreneur invests money, time, and energy in their business in the hope of receiving greater rewards, or benefits.  Other risks for entrepreneurs include:  Unexpected problems are challenges for which you are unprepared.  Unreliable income is when the amount of money you pay yourself changes month to month.  It’s not unusual for entrepreneurs to work a lot of extra hours to make their businesses successful. 3 ChapterThink Like an Entrepreneur 17

Developing the Characteristics of an Entrepreneur  Most entrepreneurs share similar characteristics that make them suited to starting a business.  Entrepreneurs also have certain skills that help them succeed.  If you keep a positive attitude and believe in yourself, you can develop many of the characteristics and skills needed to be a successful entrepreneur.  The qualities of an entrepreneur include:  Entrepreneurs have courage.  Entrepreneurs are curious.  Entrepreneurs are disciplined.  Entrepreneurs have empathy.  Entrepreneurs are honest. 4 ChapterThink Like an Entrepreneur 17

Entrepreneurial Skills  Some of the basic skills entrepreneurs need include:  Business skills: Understanding how to create and manage a business  Communication skills: The ability to listen, write, and speak well  Computer skills: The ability to use technological tools effectively  Decision-making and problem-solving skills: Knowing how to apply logic, information, and past experiences to new decisions and problems  Mathematical skills: Using math to create budgets, keep accurate records, and analyze financial statements  Organizational skills: The knack of keeping tasks and information in order; the ability to plan well and manage your time  Relationship skills: The ability to persuade and motivate people; knowing how to be a leader and to work as part of a team 5 ChapterThink Like an Entrepreneur 17

Entrepreneurial Keys to Success  You can increase your entrepreneurial potential by focusing on six specific areas:  Business knowledge. Make a habit of reading magazine and newspaper articles on business topics.  Financial skills. Strengthen your math skills by taking a course in accounting, personal finance, or investing.  Career exploration. It’s never too early to start thinking about your career.  Community awareness. Look for opportunities to become involved in your community.  Education. Take advantage of opportunities to learn new things, ask lots of questions, and work hard to do your best.  Relationships. Spend time with people who believe in and inspire you. 6 ChapterThink Like an Entrepreneur 17

Chapter Review  Entrepreneurship is the process of starting a new business.  Since entrepreneurs have the final say in all business decisions, they are ultimately responsible for success or failure of their businesses.  An entrepreneur must evaluate whether the potential rewards are worth more than the drawbacks and risks they take.  Risk refers to the chance of danger or loss. In terms of business, it usually refers to the risk of losing money.  Rewards are the financial returns an entrepreneur earns from their businesses. 7 ChapterThink Like an Entrepreneur 17