Chapter 2 Entrepreneurship, small business and franchising

Entrepreneurship
An entrepreneur is a person who takes the risk of starting and managing a business, an innovator with an idea of a new product/service starting a business to pursue it in order to make a profit. The concept entrepreneur is often used in a broad sense to include small-business owners.

Characteristics of a successful entrepreneur

Successful entrepreneurs are: independent; self-starters, who prefer to lead rather than follow; self-confident; able to solve problems; good decision-makers; creative related to products, marketing and managerial solutions, in order to compete with larger firms; totally committed to the firm;

Having your own firm

You can: A. start from scratch usually a small business; B. buy an existing business; C. buy a franchise.

Conclusions

An entrepreneur is a person who takes the risk of starting and managing a business, an innovator with an idea of a new product/service starting a business to pursue it in order to make a profit. There are four basic reasons to start a business: having a chance to make a profit, being your own boss, feeling personal satisfaction with your work and building the lifestyle that you prefer.

Conclusions
A successful entrepreneur must have: entrepreneurial personality, managerial ability and technical knowledge. If you decide to go into business for yourself, there are at least three possibilities: starting a small business, buying an existing business or buying a franchise.

Conclusions

The advantages of having a small business are the following: greater flexibility, greater ability to serve specialized markets, more personal services. The disadvantages of having a small business are the following: limited managerial ability, fund-raising difficulties, extreme personal commitment of the owner.

Conclusions

The advantages of having a franchise are the following: successful product, company name and operating concept, guidance, training, management assistance and financial assistance from the franchisor. The disadvantages of having a franchise are the following: the costs - a minimum cash investment and royalties- and restricted operating freedom.

Thank you for your attention!