1. Entrepreneurs Business Essentials

2. Definitions • Entrepreneur- people who own, operate, and take the risk of starting a business venture • Accept risks and responsibilities to gain profits and personal satisfaction • Entrepreneurship- process of running a business of one’s own • Venture- a business undertaking involving risk • Risk- possibility of damage, injury, or loss

3. Types of Entrepreneurial Businesses • Manufacturing • Produce products they sell • Wholesaling • Sell products to people other than the final customer • Retailing • Selling products to people • Service • Sell services • Agricultural • Generate fresh produce and other farm products • Mining & Extracting • Take resources out of ground so they can be consumed

4. Personal Characteristics of Successful Entrepreneurs

5. Advantages and Disadvantages

6. Entrepreneurship and the Economy • 1 in 10 Americans 18-64 involved in entrepreneur activities • 625,000 new businesses/year • Very risky • Almost as many close each year • Start with $10K or less

7. 10 Top Reasons for Failure • Management mistakes • Lack of experience • Poor financial control • Weak marketing efforts • Failure to develop a strategic plan • Uncontrolled growth • Poor location • Improper inventory control • Incorrect pricing • Inability to make the “entrepreneurial transition”

8. How Can Entrepreneurs Succeed? • Effective planning • Good management • Doing what it takes to be successful • Learn how to build successful new businesses • Assemble a team that has the expertise they need

9. Think Critically • Entrepreneurs can fail even if they are committed and have the characteristics needed to be successful. Why do you think this can happen? • Why is it important for entrepreneurs to choose a field that they will enjoy? • Do you think the advantages of entrepreneurship outweigh the disadvantages? Why or why not?