6. Chapter 33 n Entrepreneurial Concepts 6
VARYING CONCEPTS OF AN ENTREPRENEUR
There is no universal definition of an entrepreneur. An
entrepreneur can be defined from different perspectives
or points of view. Some of these differing perspectives
are as follows:
o An opportunity finder who sees a need, assesses the
situation, ventures a risk to fulfill the need, and makes
a profit.
o One who innovates and creates new products or
services or expands the existing market.
o One who is driven by a strong desire to be successful
and is highly motivated to excel.
7. Chapter 33 n Entrepreneurial Concepts 7
o One who brings resources, labor,
materials, and other assets together and
makes their value greater than before.
o One who identifies opportunities, plans,
mobilizes resources, manages, and
assumes the risks of a business to have a
positive impact on society.
o One who finances, organizes, and
manages a business.
8. Chapter 33 n Entrepreneurial Concepts 8
An enterprise is created by
an entrepreneur. The
process of creation is
called “entrepreneurship”.
9. Chapter 33 n Entrepreneurial Concepts 9
Entrepreneurship is a process
of actions of an entrepreneur
who is a person always in
search of something new and
exploits such ideas into gainful
opportunities by accepting the
risk and uncertainty with the
enterprise
10. Chapter 33 n Entrepreneurial Concepts 10
entrepreneurship
entrepreneurs
11. Chapter 33 n Entrepreneurial Concepts
Entrepreneurship is the process of starting
and managing your own business.
Entrepreneurs are people who organize,
manage, and take the risk of owning and
operating a business.
What is Entrepreneurship?
12. Chapter 33 n Entrepreneurial Concepts 12
Entrepreneurship requires a major commitment
of time, money, and effort with no guarantee of
success.
Most entrepreneurs:
Are between the ages of 25 and 40
Have work experience, personal drive,
financial resources, and a willingness to
take business risks
The Risk of Entrepreneurship
13. Chapter 33 n Entrepreneurial Concepts 13
Advantages of Entrepreneurship
Some of the reasons people choose to start
their own businesses are:
personal freedom
personal satisfaction
increased income
increased self-esteem
14. Chapter 33 n Entrepreneurial Concepts 14
Disadvantages of Entrepreneurship
Disadvantages of entrepreneurship include:
potential loss of income
long and irregular hours
necessity for strong self-discipline
potential loss of status and invested money
15. Chapter 33 n Entrepreneurial Concepts
The Importance of Entrepreneurship
in Our Economy
Small businesses are those with less than
500 employees in manufacturing and less
than 100 in retailing. Small businesses make
up the majority of businesses, providing jobs
for about 55 percent of the labor force,
and accounting for 50 percent of the
Gross Domestic Product.
16. Chapter 33 n Entrepreneurial Concepts 16
ASSESSMENT
Thinking Critically
Do you think money and material gain are
the most important reasons for becoming
an entrepreneur? Explain your answer.
If your answer is no, what do you consider
the most important reasons for becoming
an entrepreneur?
17. Chapter 33 n Entrepreneurial Concepts 17
ASSESSMENT
Reviewing Key Terms and Concepts
1. What is entrepreneurship?
2. Why is starting a new business such a risk?
3. What are four advantages and three
disadvantages of being an entrepreneur?
4. What are three characteristics of a
successful entrepreneur?
5. What are three reasons small businesses
are important to the economy?
