Entrepreneurship & Starting a Business Study Guide PDF

**CHAPTER 6 -- STUDY GUIDE** **Entrepreneurship and Starting a Business** *Instructions: Fill in the Study Guide as you read the chapter and in class.* What is an entrepreneur? - A risk taker in the private enterprise - Person who seeks a profitable opportunity and takes the nexessary r...

**CHAPTER 6 -- STUDY GUIDE** **Entrepreneurship and Starting a Business** *Instructions: Fill in the Study Guide as you read the chapter and in class.* What is an entrepreneur? - A risk taker in the private enterprise - Person who seeks a profitable opportunity and takes the nexessary risks to set up and operate a business - Differs from a small businesses because they seek expansion and growth - Also differ from managers because they work as owner/managers Personality traits common in all entrepreneurs: - Willingness to take risks. Types of entrepreneurs: 1.classic \- see business opportunities and allocate resources to gain access to those new markets 2\. serial \- start a business and run it, and then strt and run additional business one after another. 3\. social \- focus on solving societies challenges through their businesses. \- recognize a societal problem and use business principles to develop innovative solutions. Reasons to choose entrepreneurship: 1.desire to be their own boss - The freedom to make all the decisions. - Engaging in almost all commuincations related to your business, including dealing with customers, suppliers, distributors, retailers. 2\. desire to succeed financially - Often believe they have an idea for a better product - Want to share a product and be the first to reap its rewards. 3.desire to obtain job security - Workers discovering the benefits of entrepreneurship rather than working for a company. 4.desire to improve their quality of life - Independence and more freedom on deciding when, where, how, why. - Doesn't necessarily mean working fewer hours. Current environmental factors contributing to entrepreneurship 1.globalization - Rapid globalization of businesses has created many job opportunities for entrepreneurs. - Marketing products abroad and hiring international talent. 2.education - More educational opportunities at colleges and universities about becoming an entrepreneur. - Organizations also have started teaching young people about entrepreneurship. 3\. information technology - As business and technology have merged, entrepreneurs have gained tools to help them compete with large companies. - Technology has leved the playing field between entrepreneurs and larger firms. - Social networking also helps to reap benefits 4\. demographic and economic trends - Two groups most likely to start a business: - Immigrants to north America - People beyween the ages of 55 and 64 - Demographic trends can create opportunities for entrepreneurs. **Characteristics of entrepreneurs:** 1.Vision \- an overall idea for how to make their business idea a success. \- followed by enery and excitement. 2\. High energy level \- starting up their ideas while still working a full-time job. \- doing most if not all of the work themselves. 3\. Need to achieve \- strong competitiveness and a want to excel. 4\. Self-Confidence and Optimism \- belief in their ability to succeed. \- see opportunities. 5\. Tolerance of failures: \- ability to try and try again. 6\. Creativity \- think of new ideas for goods or services. \- devise new ways to overcome difficulties and situations. 7\. Tolerance for ambiguity \- dealing with unexpected events 8.Internal Locus of control \- believe they control their own future.