16 Chapter 1 Entrepreneurial Careers Copyright Goodheart-Willcox Co., Inc. During your lifetime, you might be all three. Your could be an employee working for a business. You report to work, do your job, and go home at the end of the day. After you have experience working and creating products for your employer, you might decide to become an entrepreneur and operate your own business. Entrepreneurship is taking on both the risks and responsibilities of starting a new business. It also includes learning about how to run a business and manage other people. Activities involved in entrepreneurship include deciding the type of business to open, 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. According to the Small Business Administration (SBA), there are an estimated 28.2 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 37 percent of all high-tech workers. Even more amazing is the fact that small businesses export 98 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 US Census Bureau, over 677,000 new US businesses are started each year. That is an average of just under 1,855 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. Focus on Finance 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. FYI 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.