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
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.