Marketing Essentials

Chapter 33: Entrepreneurial Concepts

Chapter Summaries

Section 33.1

• Entrepreneurship is the process of starting and operating your own business.
• Advantages of entrepreneurship include being your own boss and earning a high income if the business is successful. Entrepreneurs set their own work schedules, try out their own ideas, and make company decisions.
• Disadvantages of entrepreneurship include working long hours and the risk of failure. Most new businesses do not make a profit for a year or longer, and two out of every three new businesses close down within four years.
• Most successful entrepreneurs share certain characteristics: determination, self-motivation, self-confidence, strong organizational skills, leadership ability, self-discipline, creativity, a willingness to work hard, a spirit of adventure, and good social skills.
• Entrepreneurship is important in the economy, generating growth and new jobs, as well as improving products and processes and providing consumers with more choices of goods and services.

Section 33.2

• The four forms of business organization are: (1) sole proprietorship, (2) partnership, (3) corporation, and (4) limited liability company.
• To start a business, there are several steps to follow: find help, such as an accountant, attorney, or other business advisor; register the business with the local or state government; and obtain any necessary licenses.