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Chapter 1 Entrepreneurial Careers
identifying customers, developing a marketing plan, managing
finances, and hiring qualified employees.
More people than ever are thinking about starting their own
business. Newly created businesses are sometimes called start-up
companies, especially if they are high-growth or technology
businesses. There are an estimated 29.6 million small businesses and
start-ups in the United States. These businesses have a huge impact on
the economy. Small businesses employ more than half of the private-
sector employees in the country—and hire 40 percent of all high-tech
workers. Even more amazing is the fact that small businesses export
97.3 percent of all exported goods and represent 99.7 percent of all
employer firms.
Who Can Be an Entrepreneur?
Have you ever thought about becoming an entrepreneur?
You, your classmates, relatives, neighbors, and friends can all be
entrepreneurs. In the United States, a person is only limited by his
or her creativity, drive, and desire to start a business as illustrated in
Figure 1-5. Everyone is free to start a legal business in this country.
According to the Kauffman Foundation, over 565,000 new US
businesses are started each year. That is an average of just under 1,548
per day. Will you start a new business today, next month, or next year?
Many people have business ideas, and many have a dream or goal
to start a business. Entrepreneurs, however, take steps to make their
dreams come true. The road to creating a business can be difficult and
full of risk. Successful entrepreneurs will tell you it is worth it.
Entrepreneurs are creative people who have an idea to start a
business. However, starting a business and keeping the business
going are two different things. A leader is someone who influences
others in a positive way and makes things different or makes things
better. Most entrepreneurs are natural leaders; that is, they motivate
During tough economic
times, people begin to
rely on themselves for
their income. In 2009,
more new businesses
were started than in the
previous 14 years.
FYI
Focus on Finance
Business Accounts
When starting a new business, it is wise to keep
personal finances separate from business finances. New
entrepreneurs sometimes make the mistake of combining
personal finance records with business finance records.
When it comes time to evaluate business expenses, it can
be challenging to separate them from personal expenses. In addition,
keeping separate bank accounts makes it easier to complete your taxes.