1. CONTEMPORARY ECONOMICS
8.1 Entrepreneurs
CONTEMPORARY ECONOMICS
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Businesses
8.1 Entrepreneurs
8.2 Sole Proprietorships and Partnerships
8.3 Corporations and Other Organizations
LESSON 8.1

2. CONSIDER Why do some people want to call themselves “boss”?
8.1 Entrepreneurs
CONSIDER
Why do some people want to call themselves “boss”?
Why start a business if most new businesses don’t last five years?
What does your summer lawn-mowing operation have in common with Wal-Mart?
What do Corp. or Inc. in a company’s name tell you about how the owners treat debt?
How could it be possible that most U.S. businesses have no paid employees?

3. 8.1 Entrepreneurs Objectives
Understand the role of the entrepreneur in a market economy.
Differentiate entrepreneurs from people who perform a limited business role.

4. CONTEMPORARY ECONOMICS financial capital innovation
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8.1 Entrepreneurs
Key Terms
financial capital
innovation
LESSON 8.1

5. Role of Entrepreneurs Profit-seeker Risk-taker Visionary

6. Entrepreneurs and Creative Change
Introduce new products
Improve quality of existing products
Introduce new production methods
Introduce new ways of doing business

7. Financing the Business
8.1 Entrepreneurs
Financing the Business
Financial capital is the money needed to start or expand the business.
Sources of financing
Banks
Venture capitalists
Savings

8. Profit Attracts Competitors
8.1 Entrepreneurs
Profit Attracts Competitors
Other businesses will enter the market in the long run and try to duplicate the success of the original entrepreneur
The pursuit of profit can lead to a chain of events that creates new and better products, more competition, more production, higher quality, and lower prices.

9. Who Isn’t an Entrepreneur?
8.1 Entrepreneurs
Who Isn’t an Entrepreneur?
Invention, innovation, and entrepreneurs
Managers and entrepreneurs
Stockholders and entrepreneurs

10. Sources of U.S. Patents Awarded for Inventions by Year
8.1 Entrepreneurs
Sources of U.S. Patents Awarded for Inventions by Year
In 1980, 22 percent of all patents were awarded to individuals.
By 2004, only 11 percent went to individuals.
Figure 8.1