Marketing Essentials n Chapter 33 Entrepreneurial Concepts Section

Marketing Essentials n Chapter 33 Entrepreneurial Concepts Section 33. 1 Entrepreneurship Chapter 33 n Entrepreneurial Concepts 1

SECTION 33. 1 Entrepreneurship What You'll Learn = The meaning of entrepreneurship = How to identify the risks involved in entrepreneurship = The advantages and disadvantages of entrepreneurship = How to identify the personal characteristics and skills entrepreneurs need = The scope of small business in the American economy Chapter 33 n Entrepreneurial Concepts 2

SECTION 33. 1 Entrepreneurship Why It's Important In this section, you will learn some important advantages and disadvantages of business ownership. Chapter 33 n Entrepreneurial Concepts 3

SECTION 33. 1 Entrepreneurship Key Terms = entrepreneurship = entrepreneurs Chapter 33 n Entrepreneurial Concepts 4

SECTION 33. 1 Entrepreneurship What is Entrepreneurship? Entrepreneurship is the process of starting and managing your own business. Entrepreneurs are people who organize, manage, and take the risk of owning and operating a business. Chapter 33 n Entrepreneurial Concepts 5

SECTION 33. 1 Entrepreneurship The Risk of Entrepreneurship requires a major commitment of time, money, and effort with no guarantee of success. Most entrepreneurs: = Are between the ages of 25 and 40 = Have work experience, personal drive, financial resources, and a willingness to take business risks Chapter 33 n Entrepreneurial Concepts 6

SECTION 33. 1 Entrepreneurship Advantages of Entrepreneurship Some of the reasons people choose to start their own businesses are: = personal freedom = personal satisfaction = increased income = increased self-esteem Chapter 33 n Entrepreneurial Concepts 7

SECTION 33. 1 Entrepreneurship Disadvantages of entrepreneurship include: = potential loss of income = long and irregular hours = necessity for strong self-discipline = potential loss of status and invested money Chapter 33 n Entrepreneurial Concepts 8

SECTION 33. 1 Entrepreneurship The Importance of Entrepreneurship in Our Economy Small businesses are those with less than 500 employees in manufacturing and less than 100 in retailing. Small businesses make up the majority of U. S. businesses, providing jobs for about 55 percent of the labor force, and accounting for 50 percent of the Gross Domestic Product. Chapter 33 n Entrepreneurial Concepts 9

33. 1 ASSESSMENT Reviewing Key Terms and Concepts 1. What is entrepreneurship? 2. Why is starting a new business such a risk? 3. What are four advantages and three disadvantages of being an entrepreneur? 4. What are three characteristics of a successful entrepreneur? 5. What are three reasons small businesses are important to the economy? Chapter 33 n Entrepreneurial Concepts 10

33. 1 ASSESSMENT Thinking Critically Do you think money and material gain are the most important reasons for becoming an entrepreneur? Explain your answer. If your answer is no, what do you consider the most important reasons for becoming an entrepreneur? Chapter 33 n Entrepreneurial Concepts 11

Marketing Essentials End of Section 33. 1 Chapter 33 n Entrepreneurial Concepts 12