Entrepreneurship: is a business started by someone who notices a need for a product or service. Soared in the late 1990s….but why?
Because of Virtual Businesses (Dot-Coms) or businesses that operate on the Internet.
Satisfaction from taking a risk and becoming a success.
Showing expertise and skills.
Working from home. Gaining profit.
Total responsibility for the business.
Long hours. Financial risks.
The Small Business Administration (SBA) defines a small business as an independently owned business that has the owner as its manager and: Serves a limited geographic area. Employs fewer than 500 people. Not dominant in its industry.
Most business in the United States are small businesses; about 25 million.
Employ more than 50 percent of the total workforce in the U.S.
Generate more than ½ the nation’s income.
Principle source of new jobs. Account for about 38% of jobs
in technology. 4 out of 5 businesses fail in their
first 5 years.
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
Auto Dealers
Furniture Stores
Home Furnishing Stores
Construction Materials
Appliances, Tvs, Radios
Meats packaging and Production
Paint, Glass, and Wallpaper Stores
Meat and Fish Markets
Total Employees
Effect of change. Styles & trends constantly change. Managerial skills needed. Financing, employee relations, production, and customer relations. Inadequate financial planning.
Being the boss. Opportunity to offer
services large
companies cannot
offer. Ease of formation.
Advantages Disadvantages