1. Entrepreneurship and Small Business
Chapter 5
Take a note sheet on your way in

2. Entrepreneurship
A business started by someone who notices a need for a product or service.

3. Characteristics of an Entrepreneur
Strong need to achieve
Spirit of adventure
Self-confident
Goal-oriented
Innovative, creative and versatile
Persistent
Hardworking and energetic
Positive thinker
Willing to take initiative
Willing to commit

4. Disadvantages
Starting your own business means that you must be willing to give up the security of a regular paycheck
Business may struggle in the beginning
Work schedule is never predictable
Long hours
Emergencies may come up
All the decisions of the business must be made by you
You are responsible for everything

5. Advantages You are your own boss
You can work whenever you want, wherever you want and however you want
You offer a new service/product that no one else has offered before
Due to its high capacity for risk, there is a lot of adventure

6. Small Business
An independently owned business that usually has the owner as its manager

7. Characteristics of a Small Business
Serves a limited geographic area
Employs fewer than 500 people
Is not dominant in its industry

8. Advantages of Owning a Small Business
You are your own boss
You can quickly respond to your customers’ needs
They are easy to form
Get a license for operation
Meet local zoning requirements

9. Disadvantages Work long hours Make all the decisions
financing, employee relations, production, customer relations, etc.

10. Small business owners must…
Be aware of change and adapt quickly
Be market savvy
Have multiple skills
Be financially smart
Money management helps keep a small business successfully afloat.

11. Fact: Four out of five small businesses fail in their first five years

12. You have what it takes…now what?
Create a Business Plan
Summary of the plan
Description of the company
Description of product or service
Marketing plan – how will you sell your product or service?
Legal plan – how will you organize your company?
Management plan – daily operation, key personnel, facilities, equipment, etc.
Financial plan – projections for revenues, costs, and profits.

13. Chapter 5 Bookwork
For the rest of the class, complete the book work for Chapter 5.
Page 72 #’s 1-4
Page 75 #’s 1-5
Page 77 #’s 1-2
Page 80 #’s 1-6