Entrepreneurial Concepts

EntrepreneurialConcepts

Retail Management

What You Will Learn

The meaning of entrepreneurship

How to identify the risks involved in entrepreneurship

The advantages and disadvantages

How to identify the personal skills and characteristicsnecessary for entrepreneurs

The scope of small business in the American economy

What is entrepreneurship?

The process of starting and managing your own business

Entrepreneurs contributions to economy

Henry Ford

Ray Kroc

Steve Jobs

Want to be own bosses

The Risks Involved

Major commitment

Time

Money

Effort

60% of those who start a business are between ages of 25-40

Work experience

Personal drive

More than 3,000 businesses started each week in the U.S.

2 out of 3 close within first four years

Entrepreneurship

Advantages

Personal Freedom

Increased Income

Personal Satisfaction

Increased Self-Esteem

Disadvantages

Potential Loss of Income

Long Hours

Irregular Hours

Strong Self Discipline

Do you have what it takes?

Can you make your own decisions?

Do you like competition?

Can you adapt to changing conditions?

Are you willing to work 12-16 hours a day, weekends, and some holidays?

Are you prepared to lower your standard of living for a while?

Are you prepared to lose your savings?

Importance to Economy

Small Businesses

Less than 500 employees in manufacturing

Less than 100 in retailing

Make up a majority of businesses in U.S.

55% of labor force

Offer choices of goods and services

Help improve products

Logistics of BusinessOwnership

Retail Management

What You Will Learn

How to discuss business ownership opportunities

How to identify forms of business ownership

The legal steps to take in establishing a business

Business Ownership Opportunities

150,000 businesses are started each year

4 ways to enter a business

Develop a new business

Purchase a franchise

Purchase an existing nonfranchise business

Take over a family business

Forms of Business

Sole Proprietorship

Partnership

Corporation

Sole Proprietorship

Most common form of business ownership

70% of all U.S. businesses

Advantages

Easy to start

Make own decisions

Freedom from government regulation

Disadvantages

Unlimited Liability-financial liability is not limited to your investment in business

Use personal assets

Partnership

Legal agreement between two or more people to be jointly responsible forthe success and failure of a business

Least common form of business ownership (10%)

Advantages

Little regulation; taxed less heavily

Fairly easy to establish

Combines skills of owners

Disadvantages

Decision making is harder because more people are involved

Business dissolved if one partner dies

Responsible for each others debts

Corporation

Business that is chartered by a state and legally operates apart from theowner

Most complicated form of business

Governing bodies called boards hire directors and managers to protectinterest of stockholders

Stock is sold to stockholders (people who actually own the corp. with limitedliability)

Legal Steps in Establishing Your Business

File a DBA (Doing Business As)

Sole Proprietorship or partnership

Registration process by which your county government officially recognizes thatyour business exists

Filing Fee; protects name of business in county

Articles of Incorporation

Identifies the name and address of your business, its purpose, the names of theofficial directors, and the amount of stock that will be issues to each director