Unit 1 Introduction to EntrepreneurshipSmall Business Operations The

Unit 1 Introduction to Entrepreneurship/Small Business Operations

The School Based Enterprise (SBE) • Gopher Shack is a School Based Enterprise (SBE). • The concessions stand opened for business as an SBE in August 2016. Frameworks 1. 2

Gopher Shack

What is a School Based Enterprise? • A school-based enterprise (SBE) is an entrepreneurial operation in a school setting that provides goods/services to meet the needs of the market. • SBEs are managed and operated by students as hands-on learning laboratories. • SBEs provide realistic and practical learning experiences that reinforce classroom instruction. Source: www. deca. org/sbe

What is a School Based Enterprise? “School-based enterprises are effective educational tools in helping to prepare students for the transition from school to work or college. For many students, they provide the first work experience; for others, they provide an opportunity to build management, supervision and leadership skills. ” Source: www. schoolbasedenterprises. org Frameworks 1. 2

Gold Level Certification www. schoolbasedenterprises. org

The SBE Funds Scholarships • Students who operate the SBE receive the profits in the form of scholarships or payments towards class/athletic/activity fees. • Scholarship payments are NOT distributed evenly. • The scholarship amounts are based on quality of work, amount of work time, attitude, and initiative.

DECA • DECA prepares emerging leaders and entrepreneurs in marketing, finance, hospitality and management in high schools and colleges around the globe. • DECA enhances the preparation for college and careers by providing co-curricular programs that integrate into classroom instruction. • DECA is a co-curricular student organization. • Co-curricular means that DECA activities are directly related to classroom instruction. Source: www. deca. org Frameworks 1. 3

DECA’s Guiding Principles DECA prepares the next generation to be: • Academically Prepared – DECA members are ambitious, high-achieving leaders equipped to conquer the challenges of their aspirations. Source: www. deca. org Frameworks 1. 3

DECA’s Guiding Principles DECA prepares the next generation to be: • Community Oriented – Recognizing the benefit of service and responsibility to the community, DECA members continually impact and improve their local and broader communities. Source: www. deca. org Frameworks 1. 3

DECA’s Guiding Principles DECA prepares the next generation to be: • Professionally Responsible – DECA members are poised professionals with ethics, integrity and high standards. Source: www. deca. org Frameworks 1. 3

DECA’s Guiding Principles DECA prepares the next generation to be: • Experienced Leaders – DECA members are empowered through experience to provide effective leadership through goal setting, consensus building and project implementation. Source: www. deca. org Frameworks 1. 3

History and Growth of DECA • DECA was officially founded in 1946 at the National level. This photograph is from one of the early National DECA meetings.

DECA • There are over 185, 000 high school DECA students in 5, 000 chapters, located in the U. S. , Canada, Germany, Mexico, Puerto Rico and Guam. • DECA helps students to develop skills for successful business careers, build self– esteem, experience leadership and practice community service. Source: www. deca. org Frameworks 1. 3

DECA Facts and Information The DECA Theme Changes Each Year Our Theme for 16 -17 “Own Your Future”

DECA Facts and Information Watch the DECA Membership Video Click here to see “DECA Video”

DECA Facts and Information • Executive Director/State Advisor Brycen Woodley 503. 709. 9079: ph 971. 404. 0903: fax Email Brycen Woodley.

DECA Facts and Information • Associate State Advisor Laura Nelson 503. 381. 6595: ph 971. 404. 0903: fax

DECA Facts and Information OLI DECA Fall Leadership Conference Sunday & Monday, Nov. 6 & 7, 2016 Bend, Oregon

DECA Facts and Information This is a goal that I would like to do 17 -18 school year. Pro Sports Career Day With The Memphis Grizzlies More Photos from Pro Sports Career Day

DECA Facts and Information International Career Development Conference More info to come

DECA Facts and Information State DECA Competition Oregon State Career Development Conference Red Lion Hotel Portland, Oregon February 12 nd – 14 th 2017

DECA Facts and Information 2017 State DECA Competition The Red Lion Hotel Jantzen Beach

DECA Facts and Information In order to participate in any DECA activities you must pay your dues! $20 due Friday October 28 th Make Checks Payable to: Gresham High School

The Entrepreneur Watch the Video Will It Be You? Watch the Video Entrepreneurs Can Change the World

The Entrepreneur Ø An entrepreneur is someone who takes the risk to start a new business. Ø Entrepreneurship is the process of planning, creating, and managing a new business. Source: Marketing, 3 e, page 587 Fred Smith, founder of Fed. Ex, wrote a business plan as a student at Yale University outlining his business idea for transporting packages overnight throughout the United States. Frameworks 1. 4

Entrepreneurs Anyone can be an entrepreneur and you can begin at any age! OUTLOOK PHOTOS: JOSH KULLA Centennial High School senior Danny Graham pours liquid nitrogen on a batch of Freezy. Cream ice cream while Nick Henry stirs the ingredients. Frameworks 9. 5

Benefits of an Entrepreneurial Career Ø Entrepreneurs often start their businesses while working for another company, this allows them to add to their income while still employed with another company. Ø Personal satisfaction from developing an idea into a business, providing jobs for people in the community, completing work that is interesting, and being able to control the profits of the company. Source: Marketing, 3 e, page 587 Frameworks 1. 4

Entrepreneurs Develop Small Businesses Ø Over 600, 000 small businesses (with 20 or fewer employees) are started each year. Ø Over 10% of the working population of the US is selfemployed. Ø Small businesses make up 97% of all businesses. Ø Small businesses employ 52% of all non-government workers and 38% of workers in high-tech occupations. Ø Small businesses are responsible for over half of all goods and services produced. Ø Over 95% of all companies involved in exporting are small businesses. Source: Marketing, 3 e, page 590 – Figure 21 -1 Frameworks 1. 4

Characteristics of Entrepreneurs Ø Focused and goal oriented. Ø Risk-taking – a willingness to risk the chance of failure in order to be successful. Ø Driven to achieve. Ø Independent minded. Ø Self-confident – believe in themselves and their abilities and expect to be successful. Ø Creativity – the ability to use imaginative skills to find unique ways to solve problems. Source: Marketing, 3 e, page 593 Frameworks 1. 6

Forms of Business Ownership Ø Proprietorship – a business owned and managed by one person. A proprietor is a person who has sole ownership of a business. Ø Partnership – a business that is owned and operated by two or more people who share in the decision making and profitability of the company. A partnership agreement is a legal document that specifies the responsibilities and financial relationships of the partners. Ø Corporation – a business owned by people who purchase stock in the company. Corporations are granted a charter by the state in which they are formed. Source: Marketing, 3 e, page 603 Frameworks 1. 7

Corporation A charter is a legal document allowing the corporation to operate as if it were a person. Source: Marketing, 3 e, pages 605 -606

Proprietorship: Advantages Ø The proprietorship is the most common form of small business ownership. Ø The owner is the boss and makes all decisions. Ø The proprietor receives all profits from the operation of the business. Ø This is the most flexible form of ownership. Ø This is the easiest form of ownership to create. Source: Marketing, 3 e, page 604 Frameworks 1. 7. 1

Proprietorship: Disadvantages Ø The proprietor may not have all the skills needed to run the business. Ø Most new businesses require a lot of money to start, this could be more than one owner can provide. Ø The risk can be great and must be carried by the proprietor, includes personal liability. Ø The business will not be able to continue if the owner becomes ill or dies. Source: Marketing, 3 e, page 604 Frameworks 1. 7. 1

Proprietorship Little Bell Wedding Chapel

Proprietorship The Queen Anne House Bed & Breakfast

Proprietorship Shelby's, a family owned and operated business, is a 25 -year tradition in the Ozark area. Pictured left to right: Shirley, Heidi, Erin, Shelby (owner), Susan, Ada and Genie.

Partnership: Advantages Ø Partners are able to combine their knowledge, skills, and abilities. Ø Partners usually will have greater financial resources to bring to the business. Ø If one partner decides to leave the business, the business does not have to close. Source: Marketing, 3 e, page 605 Frameworks 1. 7. 1

Partnership: Disadvantages Ø Disagreements on important decisions can occur among partners. Ø All partners are responsible for any actions and decisions made by another partner. Ø Profits, as well as losses, are shared by the partners. Source: Marketing, 3 e, page 605 Frameworks 1. 7. 1

Partnerships Neighbor's Mill Bakery & Café is owned by Mike and Karin Nabors. The business specializes in handcrafted, all-natural breads, grilled and cold sandwiches, soups, salads, pizzas, desserts and espresso coffees.

Corporation: Advantages Ø Offers the owners limited liability. Ø The business can exist indefinitely, beyond the life of the owners. Ø Ownership is easy to transfer by the selling of stock. Source: Marketing, 3 e, page 606 Frameworks 1. 7. 1

Corporation: Disadvantages Ø Corporations face more government rules and regulations than other forms of business ownership. Ø Stockholders tend to be focused only profits. Ø Individuals tend to avoid responsibility for the actions of the corporation. Ø Corporations are usually taxed at a higher rate than other forms of ownership. Source: Marketing, 3 e, page 606 Frameworks 1. 7. 1

Corporation The world’s largest retailer and private employer.

Corporation Fed. Ex Express was founded in 1971 by Fred Smith. The corporation was created in 1998 as FDX Corp. and became Fed. Ex Corp. in January 2000. The company handles more than 6 million shipments daily. Fed. Ex has more than 250, 000 employees.

Corporation Pace Industries, Inc. , is a 635, 000 square foot facility located in Harrison, Arkansas that specializes in commercial and consumer castings.

Developing a Business Plan Ø A business plan is a written document prepared to guide the development and operation of a new business. – The sections of a business plan usually include: • An executive summary – which provides an overview of the business concept and the important points covered in the business plan. • Description of the proposed business, product/service, community, potential target market, organizational structure, and owners. • Description of the proposed marketing activities. • Description of the proposed financial plans. Source: Marketing, 3 e, page 609 Frameworks 1. 8

End of Unit 1 Ø Visit the website ghsnelson. weebly. com and click the Quizlet. com icon and study the flashcards for this unit. Ø Or you may click the Quizlet link below.