This paper analyzes the reasons behind the success and failure of various entrepreneurs and their small businesses. Presented first is an overview of the increasing role of entrepreneurship as a way of earning a living in the United States today and the different challenges and outcomes new small business generally encounter. In the first three sections, the personal characteristics of typical entrepreneurs are outlined, as well as types of motivation and preparation for entrepreneurship. Three case studies examine small businesses that eventually turned out to be very successful, moderately successful, and not at all successful. The final two sections of the brochure discuss some of the many factors that determine the success or failure of a new enterprise. (MN)