and Small Business
9-1 Entrepreneurial Enterprise
9-2 The Business Plan and SelfEmployment
9-3 Operating an Entrepreneurial
Explain the importance of an entrepreneur
in the development of an economy.
Differentiate between the types of
Describe telecommuting and the effect of
technology on home-based businesses.
The Economic importance of
The world of business is constantly changing. No
one knows this better than the business owners
in the United States. More than 15 million people
in the US own their own small businesses.
Nations do not start with highly industrialized
airports, superhighways and computer networks.
In every country, people get ideas and take
action to make products better, faster and more
available. This inventive effort is the basis for
economic development and improved quality of
Economic and social benefits of
Most entrepreneurs start small. Some have
started in a basement or a garage. Small
companies play a very important part in the
economy. A small business is an independently
owned and operated business that does not
dominate an industry.
Small businesses are commonly categorized by
number of employees. The USSBA defines a small
business as one with less than 100 employees.
Economic and social
Small Businesses are major creators of
Small Businesses are the major source
Small Businesses often provide
TYPES OF ENTREPRENEURIAL
Agriculture, Mining and Extracting
Years ago, people work from their homes as
farmers, weavers and toolmakers. This home
based businesses are still present in many
countries including the Philippines, Pakistan,
Chad, Liberia and Kenya.
Other types of common home-based businesses
include real-estate brokers, insurance agents,
construction contractors and many more.
Involves using a computer to work at home
instead of in a company office or factory.
Telecommuting is best suited to jobs that do not
require in-person contact with others and maybe
done through computer networks and other
Businesses saves money since they do not
need as much as space for office.
Companies are able to keep talented
employees who may not want to work in a
Workers save time and energy since they
don’t travel to a place for employment.
BUSINESS PLAN AND SELFEMPLOYMENT
Self-employment is the act of generating one's income
directly from customers, clients or other organizations
as opposed to being an employee of a business or
Self-employed people generally find their own work
rather than being provided with work by an employer,
earning income from a trade or business that they
operate. In some countries governments like US and
UK are placing more emphasis on clarifying whether an
individual is self-employed or engaged in disguised
employment, often described as the pretense of a
contractual intra-business relationship to hide what is
otherwise a simple employer-employee relationship.
SELF-EMPLOYMENT IN U.S
The common perception is that self-employment is
concentrated in a few service sector industries,
like sales people and insurance agents, research
by the Small Business Administration has shown
that self-employment occurs across a wide
segment of the U.S. economy. Also in the United
States, any person is considered self-employed for
tax purposes if that person is running a business
as a sole proprietorship, independent contractor,
as a member of a partnership, or as a member of
a limited liability company that does not elect to
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