Summary

The Role of Entrepreneurs

Entrepreneurs are responsible for almost everything we use and consume in the course of a day. From switching on a lightbulb, talking on the phone, or driving your car to school—virtually everything we take for granted in our daily lives started with an entrepreneur who was willing to take the risk on some type of business venture.

Characteristics of Entrepreneurs

So, who are these entrepreneurs? You have seen that they are dynamic, risk-taking, self-motivated individuals who, even after suffering multiple failures, refuse to give up on their dreams and business aspirations. 

Opportunities and Challenges

There are both opportunities and challenges, advantages and disadvantages of small business ownership. Each individual must weigh the pros and cons in order to decide whether small business ownership is the right path for them. Time, lifestyle, finances, stress, and independence are just a few of the factors involved in making that decision.

Steps to Start a Business

Starting a business is a lot like baking a cake—there’s a recipe and a “procedure.”  In this module you learned that there’s a series of procedures and steps that every business owner goes through in order to establish their business. Which steps must be taken depend on the business and its location. When we bake a cake there’s a series of cooking steps (measuring, mixing, baking, cooling, frosting) that results in dessert! Which ingredients you put into the cake depends on what type of cake you are baking. Which ingredients (steps) you use to launch a business depends on what type of business you are starting, but the end result is the same—business!

Business Plans

The business plan is the roadmap to business success. The components of the plan cover everything from financial projections to physical location to products and services. Having a complete and thorough plan is essential to the success of any business venture—small or large. Remember what we said earlier in this section: businesses never plan to fail, but they do fail to plan!

Why Some Ventures Fail

We would like to think that every business venture will be as successful as Apple or Starbucks, but the fact is that the majority of small businesses last fewer than three years. Knowing why businesses fail is key to planning around and avoiding the circumstances that lead to failure. In other words, if you know where the land mines are you can work your way around them to get to the other side of the field!

Synthesis

We began this module by considering the contributions of entrepreneurs not only to the economy but to our daily lives. Reflecting on what you have learned in this module, think for a moment about how far entrepreneurs have taken us, our economy, and the world. From two brothers who owned a bicycle shop in Dayton, Ohio . . .

. . . to this:

Additional Resources:

The Small Business Administration website has a wealth of resources for starting entrepreneurial ventures in the U.S.