The process of identifying, creating, and pursuing opportunities to develop and manage innovative business ventures
Entrepreneur
A person who sets up a business or businesses, taking on financial risks in the hope of profit
Employees
A person employed for wages or salary, especially at non-executive level
Inventors
A person who invented a particular process or device or who invents things as an occupation
Types of Entrepreneurial Business
Manufacturing
Wholesaling
Retailing
Service
Characteristics of a Successful Entrepreneur
Independent
Self-confident
Determined and perseverance
Goal-oriented
Know what they want and able to focus on achieving it
Have a need to achieve and set high standards
Creative
Able to act quickly
Entrepreneurial Process
1. Identification and evaluation of the opportunity
2. Development of the business plan
3. Determination of the required resources
4. Management of the resulting enterprise
Different kinds of Investment
Direct Investment
Indirect Investment
Real Estate
The land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made
Indirect Investments
Savings Account
Bonds
Stocks
Mutual Funds
Life Insurance
Rent
Mutual Funds
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt
Life Insurance
A contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period
Rent
A payment of a factor of production in excess of its opportunity cost
Types of Rent
Inframarginal Rent
Pure Economic Rent
Quasi Rent
Monopoly Rent
Unemployment
A situation where a person actively searches for employment but is unable to find work
Types of Unemployment
Fictional Unemployment
Cyclical Unemployment
Structural Unemployment
Direct Investment:
Business Investment
Real Estate
Business Investments:
Spending by private businesses and nonprofits on physical capital long lasting assets used to produce goods and services.
Buying small business
Savings Account:
Interest-bearing deposit account held at a bank or other financial institution
Bonds:
Used by government or companies to raise money by borrowing from investors
Government securities and corporate bonds
Stocks:
Type of security that gives stockholders a share of ownership in a company