Chapter 6: Entrepreneurship and Starting a Small Business
Entrepreneurship is accepting the risk of starting and running a business.
The Job-Creating Power of Entrepreneurs in the United States
The history of the United States is the history of its entrepreneurs. Consider just a few
of the many who have helped shape the US economy.
DuPont, which manufactures thousands of products under such brand names
as Te”on and Lycra, was started in 1802 by French immigrant Eleuthere Irenee
du Pont de Nemours. Some 18 shareholders provided $36,000 in start-up
money.
Avon, the familiar beauty products retailer, started in 1886 with $500 David
McConnell borrowed from a friend.
George Eastman launched photographic giant Kodak in 1880 with a $3000
investment.
Why People Take the Entrepreneurial Challenge
Some reasons that people are willing to take the entrepreneurial risks, opportunity,
profit, independence and challenge.
Opportunity, the opportunity to share the American dream is a tremendous
lure. There is an increasing number or women, minorities, older people and
people with disabilities that start their own businesses and it offer them more
opportunity than working for others.
Pro6t is another important reason to become an entrepreneur.
Independence, many entrepreneurs simply do not enjoy working for someone
else.
Challenge, some people believe that entrepreneurs are excitement junkies
who thrive on risk. Entrepreneurs take moderate, calculated risks, they don’t
just gamble. In general entrepreneurs seek achievement more than power.
What does it take to be an Entrepreneur?
An entrepreneur needs to have the personality to assume the risks, take initiatives.
Create the vision and rally others to follow your lead. A list of entrepreneurial
attributes to look for in yourself includes, self-directed, self–nurturing, action-oriented,
high energetic, tolerant of uncertainty.
Turning Your Passions and Problems into Opportunities
Not all ideas are opportunities, if your idea does not meet anyone else’s needs, the
business will not succeed. In order to success it must, 6ll customers’ needs, you must
have the skills and resources to start a business, you can sell the product or service
at a price customers are willing to pay and still make a pro6t, you can get the product
or service to customers before your window nod opportunity closes, you can keep the
business going.
Entrepreneurial Teams
Entrepreneurial Teams a group of experiences people from di5erent areas of business
who join together to form a managerial team with the skills needed to develop, make
and market a new product.
benefit: Each can be from a different area of business, the group is composed of
experienced people, members have complementary skills and are creative, and they
are able to develop, make and market new products.
Micropreneurs and Home-Bases Businesses
Micropreneurs are entrepreneurs willing to accept the risk of starting and managing
the type of business that remains small, lets them do the kind of work they want to
do, and o5er them a balanced lifestyle.
Example: graphic design, writing, translating, consultants, video producers, and
bookkeepers.
Many Micropreneurs are home-based business owners; more than half of all small
businesses are run from owner’s homes.
60% of home based businesses are men.
Some reasons for the growth of home-based businesses
Computer technology has leveled the competitive playing field, allowing home
based businesses to look and act as big as their corporate competitors.
