Chapter 1 Should You Become an Entrepreneur 1

Chapter 1 Should You Become an Entrepreneur? 1. 1 All about Entrepreneurship 1. 2 Is Entrepreneurship Right for You? 1. 3 Explore Ideas and Opportunities 1. 4 Problem Solving for Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 1. 1 All About Entrepreneurship Goals n Define entrepreneurship. n Recognize the role entrepreneurs play in the U. S. economy. n Determine the reasons that businesses succeed or fail. Chapter 1 Slide 2 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n Entrepreneurs n entrepreneurship n employees Chapter 1 Slide 3 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship n Many of the small businesses in the U. S. are owned and operated by men and women who created their own companies. Chapter 1 Slide 4 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What is an Entrepreneur? n entrepreneurs n people who own, operate, and take the risk of a business venture n entrepreneurship n running a business of one’s own Chapter 1 Slide 5 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Entrepreneurs identify unmet needs in the marketplace. n They provide a service or product to meet those unmet needs. Chapter 1 Slide 6 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Employees vs. Entrepreneurs n employees n people who work for someone else n Additional earnings go to the business owner, not to the employee. Chapter 1 Slide 7 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why Do People Become Entrepreneurs? n to set your own schedule n to work out of your home n to pursue a personal dream Chapter 1 Slide 8 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Integrity and Ethical Behavior n Entrepreneurs should behave ethically in all areas of business. n The actions taken and the results of the those actions should be considered. Chapter 1 Slide 9 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Types of Entrepreneurial Businesses n manufacturing n wholesaling n retailing n service Chapter 1 Slide 10 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1 Slide 11 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Other Business Areas n agricultural n mining and extracting Chapter 1 Slide 12 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Green Entrepreneurship n Many types of businesses may focus on being organic or “green. ” n It is important to educate customers about how products or services n benefit the earth n conserve resources n http: //www. youtube. com/watch? v=DArg. NX 7 Af. Eg Chapter 1 Slide 13 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Describe different types of entrepreneurial businesses. Chapter 1 Slide 14 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Recognizing Opportunity n Many companies began with one person who started a business based on a single opportunity. n Small firms, with fewer than 500 employees, represent 99. 9 percent of American businesses. Chapter 1 Slide 15 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurs Who Changed America n Starbucks Coffee Company n retailer of coffee products n introduced new product, Espresso n markets coffee and tea products through n website n national retail supermarkets n http: //www. youtube. com/watch? v=D 4 TFRFxv. B 9 g Chapter 1 Slide 16 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n The Home Depot n corporate vision was to provide home improvement products n at the lowest price n with the best possible service n now has more than 2, 100 stores in the United States, Canada, and Mexico Chapter 1 Slide 17 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n HARPO Productions, Inc. n founded in 1986 n Oprah Winfrey is the first woman in history to own and produce her own talk show. n HARPO Entertainment Group n HARPO Productions n HARPO Films n HARPO Video Chapter 1 Slide 18 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurial Opportunities in Economic Recovery n Small businesses are an important part of the economic recovery. They are: n willing and able to make changes quickly n more creative than large companies n Their experimentation and innovation lead to technological change and increased productivity. n Take advantage of SBA n Offer assistance and loans Chapter 1 Slide 19 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n The American Recovery and Reinvestment Act of 2009 n Meant to stimulate after economic collapse in 2008 n $30 billion in tax relief for small businesses n $13 billion in loans, lines of credit, and equity capital Chapter 1 Slide 20 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Describe how one of the entrepreneurs discussed above recognized an opportunity to develop a successful business. Chapter 1 Slide 21 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Business Success or Failure n Sixty-seven percent of new businesses survive at least two years. n Forty-four percent of new businesses survive at least four years. n Success rates can be enhanced if businesses n have adequate capital n are large enough to have employees Chapter 1 Slide 22 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Businesses may fail if n the owner lacks business knowledge n Having an idea for a product or service is different than knowing how to run a business. Chapter 1 Slide 23 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What factors contribute to helping a business succeed? Chapter 1 Slide 24 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 1. 2 Is Entrepreneurship Right for You? Goals n Identify the characteristics of successful entrepreneurs. n Identify the characteristics of good team members. n Assess whether you have what it takes to succeed in your own business. Chapter 1 Slide 25 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n self-assessment n aptitude Chapter 1 Slide 26 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Characteristics of Successful Entrepreneurs n Successful entrepreneurs are: n n n Chapter 1 Slide 27 independent self-confident determined goal-oriented achievement-oriented with high standards Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n creative n able to act quickly n technologically current Chapter 1 Slide 28 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Name three important characteristics of entrepreneurs. Chapter 1 Slide 29 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Characteristics of Good Team Members n Good team members display the following traits: n n n Chapter 1 Slide 30 commitment competency communication cooperation creativity Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why is it important for entrepreneurs to be good team members? Chapter 1 Slide 31 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Are You Right for Entrepreneurship? n self-assessment n an evaluation of your strengths and weaknesses Chapter 1 Slide 32 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Interests n choose a field that n interests you n you will enjoy Chapter 1 Slide 33 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Aptitude n aptitude n the ability to learn a particular type of job Chapter 1 Slide 34 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1 Slide 35 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess the Advantages of Entrepreneurship n Entrepreneurs n n Chapter 1 Slide 36 are their own bosses can choose a business that interests them can be creative can make large sums of money Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess the Disadvantages of Entrepreneurship n Disadvantages of entrepreneurship include: n n Chapter 1 Slide 37 risk uncertain and irregular incomes long hours all decisions are made independently Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What kinds of assessments should you make to determine if entrepreneurship is right for you? Chapter 1 Slide 38 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 1. 3 Explore Ideas and Opportunities Goals n Identify sources for new business ideas. n Recognize different business opportunities. n Identify you own personal goals. Chapter 1 Slide 39 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n opportunities n ideas n trade shows Chapter 1 Slide 40 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Look for Ideas n opportunities n possibilities that arise from existing conditions n ideas n thoughts or concepts that come from creative thinking Chapter 1 Slide 41 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Ideas come from a variety of sources including: n Hobbies and Interests n Past Experiences n Discovery or Invention Chapter 1 Slide 42 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Where do new ideas for businesses come from? Chapter 1 Slide 43 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Investigate Opportunities n Sources of Information n n Chapter 1 Slide 44 Internet library County Business Patterns Small Business Administration Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n trade shows n special meetings where companies of the same or related industry display their products Chapter 1 Slide 45 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Compare Different Opportunities n For each business opportunity, you should consider: n Will people buy my product or service? n How much money is required to start the business? n How many hours per week will it take to run the business? Chapter 1 Slide 46 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n What are the risks associated with this business? n Do I have the right background to run this business? n How much money could I make running this business? Chapter 1 Slide 47 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

How can you find out about various business opportunities? Chapter 1 Slide 48 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Set Goals Chapter 1 Slide 49 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Financial Goals n Financial goals should be: n realistic n measurable n easily attainable in the time allotted Chapter 1 Slide 50 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Nonfinancial Goals n Nonfinancial goals may include: n n Chapter 1 Slide 51 personal satisfaction serving a community need doing something you like enjoying personal independence Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why are financial goals important? Name some nonfinancial goals an entrepreneur may have. Chapter 1 Slide 52 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Lesson 1. 4 Problem Solving for Entrepreneurs Goals n List the six steps of the problemsolving model. n Describe ways to improve your problem-solving skills. Chapter 1 Slide 53 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vocabulary n problem-solving model n brainstorming Chapter 1 Slide 54 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Use the Problem-Solving Model n problem-solving model n helps people solve problems in a logical manner Chapter 1 Slide 55 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1 Slide 56 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Define the Problem n write down what the problem is and why it is a problem n quantify the problem n Gather Information n collect information that can help solve the problem Chapter 1 Slide 57 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Identify Various Solutions n identify all possibilities before selecting a particular solution n Evaluate Alternatives and Select the Best Option n quantify or rank alternatives Chapter 1 Slide 58 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Take Action n implement the solution n Evaluate the Action n even a well-thought-out solution may not work Chapter 1 Slide 59 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What are the six steps in the problem-solving model? Chapter 1 Slide 60 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Problem-Solving Skills n Communicate n communicate clearly and confidently n be a good listener n Brainstorming n a creative problem-solving technique n generates a large number of fresh ideas Chapter 1 Slide 61 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Learn from Mistakes n Mistakes are a learning experience. Chapter 1 Slide 62 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

How can you improve your problem -solving skills? Chapter 1 Slide 63 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

PERFORMANCE INDICATORS n Evaluate and delegate responsibilities needed to perform required tasks n Demonstrate effective teamwork skills needed to function in a business setting Chapter 1 Slide 64 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

n Demonstrate knowledge of multimedia software and components n Demonstrate effective oral communication skills n Apply technical skills to create a multimedia presentation which enhances the oral presentation Chapter 1 Slide 65 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

THINK CRITICALLY 1. Why must entrepreneurs look at future trends when making business decisions? 2. Why should entrepreneurs look beyond current technology trends when making business decisions? Chapter 1 Slide 66 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Why should statistics be used for this presentation? 4. How are entrepreneurs affected by a global economy? Chapter 1 Slide 67 Entrepreneurship: Ideas in Action 5 e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.