(BA) Entrepreneurship and Small Business Management

(BA) Entrepreneurship and Small Business Management -...

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Chapter 1: What Is Entrepreneurship? Section 1: Entrepreneurship and the Economy Section 1.1 Summary To be able to compete and succeed in the free market system, entrepreneurs need to understand how the economy works. There are several types of economic systems. Most democratic nations have a free enterprise system. Fundamental to the free enterprise system is the right of economic choice. Factors of production are the resources businesses use to produce the goods and services people want. Supply and demand interact to determine the price customers are willing to pay for the number of products producers are willing to make. The federal government publishes statistics called economic indicators that help entrepreneurs understand the economy and predict possible changes. A business cycle is the pattern of contraction and expansion that the economy goes through. Entrepreneurs contribute to society in many ways. Section 2: The Entrepreneurial Process Section 1.2 Summary Throughout American history, entrepreneurship has fueled innovation, created new jobs, and satisfied wants and needs in the marketplace. Entrepreneurs start businesses through a process that includes five key components: the entrepreneur, the environment, the opportunity, the resources to start the business, and the new venture organization. Entrepreneurs can achieve business success by planning and managing effectively. Chapter 2: Your Potential As An Entrepreneur Section 1: Why Be An Entrepreneur? Section 2.1 Summary People become entrepreneurs for many reasons. Prospective entrepreneurs need to weigh the advantages and disadvantages before deciding whether to start their own businesses. The rewards of going into business for yourself are being your own boss, doing something you enjoy, having the opportunity to be creative, having the freedom to set your own schedule, having job security, making more money, and being recognized within the community. The risks of self-employment are working long hours, having an uncertain income, being fully responsible, and risking one's investment. Section 2: What Does It Take to Be an Entrepreneur? Section 2.2 Summary Research shows that everyone has the potential to become an entrepreneur. Although certain background experiences may increase the likelihood of becoming an entrepreneur, a can-do attitude and desire are more important. Successful entrepreneurs are persistent, creative, responsible, inquisitive, goal-oriented, and enthusiastic. The ten foundation skills entrepreneurs need to organize their businesses are communication skills, math skills, problem-solving skills, computer and technical skills, decision-making skills, organizing and planning skills, teamwork skills, social skills, adaptability skills, and basic business skills. Entrepreneurs should have a basic understanding of how the economy works and an understanding of fundamental concepts of finance, marketing, and management. 1
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(BA) Entrepreneurship and Small Business Management -...

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