Entrepreneurs and Business Organization Chapter 9 Essential Question: How do entrepreneurs use their resources to start a business?

Starting a business Entrepreneurs – take the risk to start a business and either enjoy the success or suffer the losses Examples: Oprah, Mary Kay Ash, Steve Jobs, Jay-Z, the Snapchat guys Characteristics of successful entrepreneurs… Ambition Self-confidence Willing to take risks Energy and self-discipline Problem solving skills Organizational skill Ability to motivate others Perseverance

Cont. The odds of biz survival are not good. Why do it then? Money! Be your own boss Follow your passion Satisfaction…I did it and it’s mine!

Business types 1. Sole proprietorship – one owner Good Easy to start (may need license, permit) Full decision making Full profits Easy to close Bad Limited growth Limited biz life Unlimited liability – can be sued for everything Often is switched to LLC – limited liability company to avoid this

Cont. 2. Partnerships – two or more owners Similar to proprietorships, but have shared liability Draw up a legal written agreement on various issues Benefits similar to proprietorship Bad things similar too. Also, conflict may arise or what if one leaves or dies? 3. Corporations – large companies who sell shares of stock (ownership) This raises $$$ fast for the company Organization…shareholders, board of directors, C.E.O., officers, middle management Good…limited liability, growth, profession mgt., long life Bad…complexity, loss of control, regulations, double taxation