Why Entrepreneurship and Small Business?

Private ownership and personal control is more than just an American 
phenomenon, but American history has been linked closely with this 
ideal. The notion that the U.S. has no entrenched class system but 
operates purely on a merit-based system is the foundation for the 
Horatio Alger story, in which anyone can move from “rags to riches,” 
and the idea that opportunity is available to all. Any observer of 
American life knows that this American dream is largely a myth, 
but successful entrepreneurs prove that the myth is not entirely 
groundless. Entrepreneurs make their own opportunities, and they 
will continue to do so. The franchising trend—people purchasing the 
exclusive rights to one of a nationally recognized chain of stores—
peaked in the late 1980s and early 1990s. Franchises are in decline, 
and more and more people are choosing to undertake only one part 
of an entrepreneurial venture: providing expertise, financing, or 
managing. With three or more individuals involved in the same project, 
issues of corporate governance are more complicated, but areas of 
responsibility become more clearly delineated. 

An entrepreneur risks her own capital, services, and skills in a company 
(or in several companies). Entrepreneurs exemplify the American dream—
working without a boss and using their own hands to build a livelihood. 
Successful entrepreneurs seem to have a number of similar qualities. 
First, they know business, either from their own experience or through 
extensive research. Second, they are extremely motivated. The average 
number of working hours per week of a successful starting entrepreneur
is seventy. This catches the typical American dreamer by surprise. 
Third, successful entrepreneurs become obsessed with—or at least 
fascinated by—all parts of their chosen area of expertise. No aspect 
of the business is too large or too small to consider. The best thing 
about being an entrepreneur is that they control their own destinies 
to a greater extent than if they were working for someone else. Unlike 
working for someone else who judges their work and assigns a value 
to their services, every stitch of work they do goes toward their 
betterment. This puts immense pressure on the entrepreneurs, but 
it can also be the source of immense pleasure. The most important 
entrepreneurial concerns should be thought about long before the 
person starts her own business. She must know how to run the 
company and when to reassess management strategies. She must 
be on top of issues of cash flow, expansion (or consolidation), 
liquidity, and corporate governance. Over three-fifths of new 
businesses and franchises fail within eighteen months of opening 
their doors. Many of the factors leading to failure are uncontrollable 
by the entrepreneur. If she’s trying to sell widgets, and a widgets 
superstore opens down the street, she may be sunk. Being an 
entrepreneur means thinking about the business all the time, 
accepting its responsibilities and its failures. But being one’s own 
boss, owning a business, and reaping all the rewards are powerful 
enough forces to attract people in droves. 

# of people in profession: 1,000,000 
Average hours per week: 70
Average starting salary: n/a
Average salary after 5 years: n/a 
Average salary after 10 to 15 years: n/a

Professionals read these: Fortune, Forbes, Money 
Films and TV Shows Featuring the Profession: 
The Jerk, The Art of the Deal, Forrest Gump,
Risking It All 

Major Associations:

Center for International Private 
Enterprise
1155 15th Street, NW
Suite 700
Washington, DC 20005
Tel: 202-721-9200
Fax: 202-721-9250
Web: www.cipe.org

Committee of 200
625 North Michigan Avenue
Suite 500
Chicago, IL 60611
Tel: 312-751-3477
Fax: 312-943-9401

All information above thankfully provided by the Princeton Review.
>>Entrepreneurship at The Princeton Review

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