afm week 3 chapter 7.docx - Entrepreneurship is accepting the challenge of starting and running a business 2.7 million people in Canada who are

afm week 3 chapter 7.docx - Entrepreneurship is accepting...

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Entrepreneurship is accepting the challenge of starting and running a business 2.7 million people in Canada who are self-employed represent a little over 15 percent of all employed workers in the Canadian economy Entrepreneurial venture differences from small businesses o Amount of Wealth Creation . Rather than simply generating an income stream that replaces traditional employment, a successful entrepreneurial venture creates substantial wealth, typically in excess of several million dollars of profit o Speed of Wealth Creation . While a successful small business can generate several million dollars of profit over a lifetime, entrepreneurial wealth creation often is rapid. For example, this may occur within five years. o Risk . The risk of an entrepreneurial venture must be high. Otherwise, with the incentive of sure profits, many people would pursue the idea of entrepreneurship, making business ventures impossibly competitive o Innovation . Entrepreneurship often involves substantial innovation beyond what a small business might exhibit. This innovation gives the venture the competitive advantage that results in wealth creation. Innovation may be in new products, new production methods, new markets, and new forms of organizations. people are willing to take the challenge of starting a business because of o New Idea, Process, or Product ; they can produce a better product, or a current product at a lower cost, than anybody else o Independence ; They like doing things their own way without someone standing over them. This type of person gets a great deal of satisfaction out of what he or she achieves o Challenge ; Many people thrive on overcoming challenges. These people welcome the opportunity to run their own business o Family pattern ; Some people grow up in an atmosphere in which family members have started their own businesses, perhaps going back several generations o Profit ; It is natural for people to benefit monetarily from their ideas and dedication and to be rewarded for the money they risk and their hard work when they run a business o Immigrants ; Some immigrants who come to Canada lack education. This, combined with no Canadian job experience and weak language skills, makes it difficult for them to find employment. However, they often have the drive and desire to succeed, and if they can obtain the capital, they can start their own business Entrepreneurial attributes o Self-directed ; You should be self-disciplined and thoroughly comfortable being your own boss. o Self-nurturing ; You must believe in your idea even when no one else does, and be able to replenish your own enthusiasm. o Action-Oriented ; The most important thing is a burning desire to realize, actualize, and build your dream into reality o Highly Energetic . It is your own business and you must be emotionally, mentally, and physically able to work long and hard o Tolerant of Uncertainty . Successful entrepreneurs take only calculated risks (if they can help it). Still, they must be able to take some risks o Able to Learn Quickly ; learn from past mistakes
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