Business Explain: Entrepreneurship

What is the size, scope and economic contribution of small business?

Vital role in American economy, generating about half of the U.S. gross domestic product and accounting for 65% of all new jobs over past 17 years. In addition to employment growth, small businesses contribute innovations to the economy at a much higher rate than their big business counterparts, form the backbone of many inner-city economies by finding opportunities (and offering products and services) in places where most large firms opt not to operate. Entrepreneurship rate varies around the world dramatically based on national per capita income.

What are ways to become a business owner and facilitate success?

Less risky to buy an established business or franchise, but more satisfying to some to start a new venture from scratch. gain experience in your field, learn from others, educate yourself, access SBA resources, and develop a business plan.

What are the opportunities and threats facing small businesses?

Opportunities: market niches, personal customer service, lower overhead costs, technology.

THREATS: high risk of failure, lack of knowledge and experience, too little money, bigger regulatory burden, higher health insurance costs.

What are funding options for small business?

Personal resources of the founder (personal credit accounts, family, and friends) as well as bank loans, angel investors, and venture capital firms.

What is the typical entrepreneurial mindset and characteristics?

Vision, self-reliance, energy, confidence, tolerance of uncertainty, and tolerance of failure, among other things.

Why do entrepreneurs launch small businesses?

Advantages can far outweigh the risks and hard work, most who do are seeking financial success, independence, flexibility, and challenge, as well as survival and having no other options.