An entrepreneur is a person who owns and operates his own business.Entrepreneurs are owners of the business and works for themselves and not an employer.He or she takes risks,makes decisions and if the business is profitable, it is all his or hers.He alone decides to save his profits, spend it or reinvest. An entrepreneurs identifies an opportunity, he observes something is not complete,or is odd or there is a need to be met or satisfied.He fills a vacuum where there is a void.The vacuum is filled with a product, service or idea.A product is man made, it is tangible,it can be felt and touched.A service on the hand is not tangible, it cannot be felt or touched.An entrepreneur sees opportunity where other did not see such.He brings together all factors of production as an economic agent.He gathers factors of production from where it is cheap and abundant and transform it to a finished product where it is costly,needed and expensive. He adds value and sustains the value.Entrepreneurs answers the economic question of what to produce,when to produce,how to produce,who to produce for as consumers.The answer to these questions is called ECONOMICS.It is the wealth, resources of a country,region or people.The United States practices a free enterprise system. In a free enterprise system,factors of production are privately owned, businesses, companies are free of government interference.Americans do not need approval or permission to go into business,they must however obey the law and be subject to regulations.This system is also called CAPITALISM. It is a system in which the government does not set prices, or determine what is to be produced.Prices are determined by the free market forces of demand and supply.This system permits private wealth and property ownership.People and organizations compete for economic gains.The system is characterized by voluntary exchange between two or more parties.It is also called free enterprise.Free enterprise has benefits and challenges, its mechanism discourages enterprises that are wasteful and rewards enterprises that meets consumer needs.

Any company that employs 500 employees is a small business as per united states small business administration. People become entrepreneurs in order to have control over their time and resources, they can work as much or not much. They enjoy a feeling of fulfillment that comes with the freedom of creation and ownership.Entrepreneurs also have control over compensation, they choose how and when they are paid. They also have control overworking conditions.

The benefits and costs of becoming an entrepreneur includes, being independent,having autonomy,satisfaction of doing what ones enjoys in addition to financial rewards.The result is higher self esteem and a great feeling of contributing to society.The cost and disadvantages of being an entrepreneur includes the fact that the business could fail,one in five new business fails in the first eight years.There are obstacles that were not envisaged that can lead to loneliness and financial insecurity.Being a small business owner can result in long hours of hard work,that can stain personal relationships.Before going into business, it is important to compare the advantages with the disadvantages,to conduct analysis that can produce opportunity costs,something that have to be given up in order to obtain a desired result.A business mentor could be required. Some entrepreneurs chooses to be social entrepreneurs.

1 What would be your reasons for starting your own small business?

2 Discuss two business opportunities and needs that are not being met?