Question

From Exploring Business v3.0 Karen Collins

es Mailings Review View ABCDE Aa Bbcode AaBbCcDc ABCDE AaB No Spacing Heading 1 Heading 2 Normal ad improvements, choose Check for Updates 2 2 WHAT IS AN ENTREPRENEUR? Define entrepreneur" in your own words Describe the 3 characteristics of entrepreneurial activity? 2.3 THE IMPORTANCE OF SMALL BUSINESS TO THE U.S. ECONOMY How "small" is small business.? If a substantial number of small businesses suddenly closed in the U.S., would anyone care? Would it impact our economy? List who would be affected and how? 2.4 WHAT INDUSTRIES ARE SMALL BUSINESSES IN? Why are most small businesses found in the service-producing sector? Identify 5 service- producing small businesses that you give your business to? What kinds of small businesses are found in the goods-producing sector? Identify at least 3 small goods producing small businesses that you give your business to 2.5 ADVANTAGES AND DISADVANTAGES OF BUSINESS OWNERSHIP 1. First, identify five advantages of small-business ownership. Next, rank these advantages according to their importance to you. Why did you rank them as you did? What factors discourage individuals from small-business ownership? Indicate which of these factors might discourage you from starting a business. Explain why. 2. Because you're convinced that the best way to get rich is to work for yourself, you're thinking about starting your own business. You have an idea and $100,000 that you just inherited from a great-aunt. You even have a location: Palo Alto, California, which (according to a Forbes magazine article) is the best place in the United States to get rich. But there's a downside: to move to California and start your own business, you'll have to drop out of college. What financial risks should you consider in making your decision? What are your chances of succeeding with your plan? Are you willing to take the financial risk needed to start a business? Why, or why not? Are you really likely to make more money running your own business than working for someone else? 2.6 STARTING A BUSINES FOCO

Answer 1

make an can our al: an enterpreneur is an individual who create burinens, bearing most of the riske and enjoying most of the rewards. The enterpreneur Es commonly seen as an innovacor, source of new ideas, goods, cervices and business or procedures. Enterpreneurs play a key role in any economy uring the skills and initiative necessary to anticipate needs and bring new ideas into market. Characteristics of enterpreneurial activity: Adaptability: Being adaptable is difficult. The only thing that fi cortant in an enterpreneurial activity is change. Adapting to situations that come through way only enterprise successful. Persistences To succeed, we neill have to be willing to pertist through difficult times. conservatism in the planning stage is often Lifesaver down the road. Work ethic. The third necessary skill is the ability and willingness to work, very hard. Run Running small uusiness is filled with challenges, but if we are adaptabile, have the uciecingness and the Wherewithas to persist and are neilling to work very hard, we greatly improve our odds success 2.3. Importance small burinese to the use small business is defined as a business with 500 employees or lers. According to the vis mau Business Administration, small uurinesses represent 99,9% of ace vis businenes. • Smau burinenser contribute to local economy by bringing growth and innovation to the community in nehich business is ahtautished. Small businesses also hep stimulate economie growth by providing employment opportunities neill economy =

40 people neho may not be employable by larger crprraliene may buonusis tend to attract Haunt nihe invent ne product r implement new folutione for eriting ideas. . Emau kumnusu prisus the ability to respond and adopt quickly to changing economic climatu. They are often very customer-oriented and understand the needs of community- the trnau business impact on local wonomy growth alm labu the form of sales tax crutchon A thriving small bunners also can imprese pomperty vatues through out the community while generating more property taxes for local governments . 8.5 Advantagu and disadvantage of business ownership: Advantages of business ownership: Finandal Rewards: succenfell burinen Owner have an opportunity to make more money for the ricks they take. difestyle independences Business owners enjoy isfestyle flexibility because they are Creating the tron schedule. • Personal satisfaction and growthe Building now bulviness that becomes cuccessful movides business owners tremendous personal Satisfaction Radvantagu of business or netship: • Financial Rieke kosing money is me of the biggest ricks of owning a business. There are start-up costs for materials and burriness echtallishment- • Time commitment : Starting a business requires time commitment. The freedom of working on own time is there but it is to be sacrificed for success of business. 2/2 C =