Owning and Operating a Business Entrepreneurship Dr. Steven M. Hays Freshman Seminar Bishop Kearney High School Entrepreneurship Dr. Steven M. Hays Freshman Seminar Bishop Kearney High School

Entrepreneurship / Definition / Go to web and find definition - write it in your notes / What is an entrepreneur? / A person who recognizes a business opportunity, tests it in the market, and assumes the risks of starting and operating a business / Creating and running a business requires a variety of skills / Definition / Go to web and find definition - write it in your notes / What is an entrepreneur? / A person who recognizes a business opportunity, tests it in the market, and assumes the risks of starting and operating a business / Creating and running a business requires a variety of skills

Small Business Administration / What is the Small Business Administration (SBA)? / A US government agency / protects the interests of small businesses / What is a small business? / Independently owned / Owner is the manager / Limited service area / < 500 employees / What is the Small Business Administration (SBA)? / A US government agency / protects the interests of small businesses / What is a small business? / Independently owned / Owner is the manager / Limited service area / < 500 employees

12 Characteristics of Successful Entrepreneurs / Persistence / Willing to work until job done / Risk-takers / They are not reckless / Self-confident / Believe in themselves / Restless / Look for new challenges / Persistence / Willing to work until job done / Risk-takers / They are not reckless / Self-confident / Believe in themselves / Restless / Look for new challenges

12 Characteristics / Goal oriented / Set and achieve goals / Action oriented / “Doers” not spectators; take action / Responsible / Actions and decisions / Self demanding / High expectations / Goal oriented / Set and achieve goals / Action oriented / “Doers” not spectators; take action / Responsible / Actions and decisions / Self demanding / High expectations

More Characteristics / Creativity / New ways, old problems / Independent / Make own decisions / Inquisitive / Conduct, ask, solve / Enthusiasm / Energetic, passionate / Creativity / New ways, old problems / Independent / Make own decisions / Inquisitive / Conduct, ask, solve / Enthusiasm / Energetic, passionate

Internet Businesses / Virtual Businesses / Business that operates on the Internet / Go online and find 5 virtual businesses - make a list in your notes / Why do consumers like doing business with virtual companies? / Large customer base / Rapid growth potential / 45% faster than traditional small businesses / Virtual Businesses / Business that operates on the Internet / Go online and find 5 virtual businesses - make a list in your notes / Why do consumers like doing business with virtual companies? / Large customer base / Rapid growth potential / 45% faster than traditional small businesses

Rewards of Entrepreneurship / Being the boss / Entrepreneur is in charge / No. 1 reason / Own decisions / Doing what you enjoy / Starts from activities you enjoy / Satisfaction / Creative opportunities / Make procedures / Shape the business / Can act on ideas / Building an enterprise / Research viability / Choose the form / Being the boss / Entrepreneur is in charge / No. 1 reason / Own decisions / Doing what you enjoy / Starts from activities you enjoy / Satisfaction / Creative opportunities / Make procedures / Shape the business / Can act on ideas / Building an enterprise / Research viability / Choose the form

Types of Businesses / Sole Proprietorships / One person / Partnerships / 2+ people / Corporations / Many owners / Sole Proprietorships / One person / Partnerships / 2+ people / Corporations / Many owners

Sole Proprietors / Do not share company’s income, expenses, profits, or losses / Total responsibility / Assumes all risks / Reaps all benefits / Do not share company’s income, expenses, profits, or losses / Total responsibility / Assumes all risks / Reaps all benefits

Challenges of Entrepreneurship / 3 challenges: / Funding / One of biggest obstacles / Borrow money / Difficult to get loans - why?? / Responsibility / Not just decisions, everything gets done / Paying bills / Training employees / Isolation / Feel alone and insecure / Work long hours / Uncertain income / FACT: 4 out of 5 (80%) of small businesses fail in the first 5 years / 3 challenges: / Funding / One of biggest obstacles / Borrow money / Difficult to get loans - why?? / Responsibility / Not just decisions, everything gets done / Paying bills / Training employees / Isolation / Feel alone and insecure / Work long hours / Uncertain income / FACT: 4 out of 5 (80%) of small businesses fail in the first 5 years

The Impact of Small Business / 99% / 50% / Majority are one person operations that generate more than half of the nations income / Principal source of new jobs / 66% / 99% / 50% / Majority are one person operations that generate more than half of the nations income / Principal source of new jobs / 66%