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

2. 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

3. 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!

4. 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

5. 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