Title: Explain the benefits and risks of starting a business.
Course: Make It Your Business (12151-18) > Section: Exploring Entrepreneurship

Explanation of the benefits should include

- being one’s own boss
- keeping the profits earned by the business
- gaining prestige as a business owner
- experiencing personal satisfaction from the accomplishment
- providing for family and others in the community
- practicing corporate citizenship.

Explanation of the risks should include

- encountering financial uncertainties and difficulties
- failing to make the venture succeed
- losing the investment (e.g., financial, personal, time)
- working overly long hours
- not being able to secure good employees who will contribute to the success of the business
- finding that you do not possess all of the skills needed to operate the business.

Process/Skill Questions

- Why are entrepreneurs often referred to as risk-takers?
- Why is it important to understand both the benefits and risks before starting a business?
- Why do some entrepreneurs make more money than others?
- Why do some businesses fail?
- How might owning a business adversely affect the owner’s home life?