Entrepreneurship: is a business started by someone who notices a need for a product or service. Soared in the late 1990s….but why?

Because of Virtual Businesses (Dot-Coms) or businesses that operate on the Internet.

Satisfaction from taking a risk and becoming a success.

Showing expertise and skills.

Working from home. Gaining profit.

Total responsibility for the business.

Long hours. Financial risks.

The Small Business Administration (SBA) defines a small business as an independently owned business that has the owner as its manager and: Serves a limited geographic area. Employs fewer than 500 people. Not dominant in its industry.

Most business in the United States are small businesses; about 25 million.

Employ more than 50 percent of the total workforce in the U.S.

Generate more than ½ the nation’s income.

Principle source of new jobs. Account for about 38% of jobs

in technology. 4 out of 5 businesses fail in their

first 5 years.

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Auto Dealers

Furniture Stores

Home Furnishing Stores

Construction Materials

Appliances, Tvs, Radios

Meats packaging and Production

Paint, Glass, and Wallpaper Stores

Meat and Fish Markets

Total Employees

Effect of change. Styles & trends constantly change. Managerial skills needed. Financing, employee relations, production, and customer relations. Inadequate financial planning.

Being the boss. Opportunity to offer

services large

companies cannot

offer. Ease of formation.

Advantages Disadvantages