Presentation on theme: "Unit 1 – Enterprising People and Entrepreneurs"— Presentation transcript:
1Unit 1 – Enterprising People and Entrepreneurs BDI 3CUnit 1 –Enterprising People and Entrepreneurs
2What is Entrepreneurship? Chapter 1What is Entrepreneurship?
3Entrepreneurs Past and Present Who are they?People who own and operate business venturesWho does it?All types of people from different backgrounds, ages and skillsBusiness can be small or large
4Entrepreneurs Past and Present How do they do it?Try to identify a need that they have or that they see that othersTake steps to create a product or service that satisfies that need
5Needs vs. Wants Needs Are essential for survival They can be “real” or “psychological”WantsGo beyond basic needs and make people feel good or help them achieve a goal.What are some examples of a need?What are some examples of a want?
8Entrepreneurs Past and Present EmployeesEntrepreneurs assume risk when starting their businessFaces potential loss of the business and other assetsDo not assume riskMay face loss of wages or their jobs if the business should fail to have the desired resultsEntrepreneurs Past and Present
9Entrepreneurs Past and Present Why would people want to become an entrepreneur?Want to leave a fast-pasted corporate jobWant to work from homeWant to pursue a personal dreamDiscovered a need that others will desire as well
10Is Entrepreneurship Right for You? Characteristics of a Successful EntrepreneursIndependent – they want to make their own decisions and pursue something they like.Self-confident – critical that they believe in themselves so others will too.Determination and Perseverance – many will try to stand in your way so you need to be able to keep pushing forward.
11Is Entrepreneurship Right for You? Characteristics of a Successful EntrepreneursGoal-Oriented – You can set a goal and focus on what needs to be done to achieve your goal.Need to Achieve and often set high standards – constantly setting new goals and challenges to keep interested and focused.
12Is Entrepreneurship Right for You? Characteristics of a Successful EntrepreneursCreative – think of new ways to market their business and always seeking solutions to problems found.Able to act quickly – not afraid to make decisions and act so they can beat their competition or react in a changing environment.
13Venture ProfileRead the case study on page 6 “Three Blondes Cook up Sweet Success”.Answer the five questions at the end of the case.Please answer questions 4 and 5 with a short (three sentence minimum) paragraph. Answers need to be in sentence form in order to receive full marks.
14The Entrepreneur’s Dozen E: xamines needs, wants, problems for which he/she feels something can be done to improve the way needs/wants are met or problems overcome. N: arrows the possible opportunities down to one specific opportunity. T: hinks of an innovative idea. R: esearches the opportunity and idea thoroughly. E:nlists the best sources of advice and assistance that can be found. P:lans the venture and looks for possible problems that might arise.
15The Entrepreneur’s Dozen R: anks the risk and possible rewards. E: valuates the risk and possible rewards and makes a decision. N: ever hands on to an idea, as much as it is loved, if research shows it won’t work. E: mploys the resources necessary for the venture if the decision is made to go ahead. U: nderstands that any entrepreneurial venture will take a great deal of long, hard work. R: ealizes a sense of accomplishment from successful ventures and learns from failed ones to achieve success in the future.
16Entrepreneurial Ventures Business ideas that are conceived, initiated and operated by a person or group of people.They fit into the following categories:For profit/not for profitLarge scale/small scaleService/goods productionPhysical/virtualLocal/provincial/national/international
17Impact on the Community Job CreationMultiplier Effect – when entrepreneurship creates jobs in the local community.New IdeasEncourages the creation of a broader range of goods and services that would otherwise exist.Economic BenefitsThrough competition, entrepreneurs not only help lower prices, but also improve a society’s standard of living.
18Impact on the Community Political BenefitsEntrepreneurship needs to provide a supportive environment where financial and legal institutions provide a strong foundation.It is also strong where lobby groups (support groups) in government, business, and education are available to collaborate, advise and encourage entrepreneurs.
19IntrapreneurshipWhen entrepreneurship occurs within an existing organization or corporation.Used in order to be more competitive, improve productivity or keep pace with changing markets, technology and new opportunities.
20E. D. Smith Rewards Employees with Bonus What did E. D. Smith do to encourage intrapreneurship?Why to you think that the company supports this kind of activity?What kind of environment should corporations provide if they want to encourage intrapreneurship?What can companied do to encourage their employees to generate new ideas or make suggestions for improved productivity?
21Supply and DemandAn alert entrepreneur takes advantage of consumers demand (what the consumer needs and wants) by providing a supply of goods and services. Demand – The amount of a good or service that customers are willing to purchase. Supply – The amount of a good or service that is available for distribution or consumption.How much is Koby Bryant paid compared to an average player?
22Supply and DemandWhen the supply is greater than the demand, the price of the good or service goes down. WHY? Because there is a surplus.When the demand is greater than the supply, the price goes up. WHY? Because there is a shortage.In order to be success, need to achieve the right balance between supply and demand.
24The Heat Wave of 2003Now you have made some predictions, let's look at some facts:Sales of ice cream doubled in some parts of the country.Hardware stores reported sharp increases in the sales of garden swings and barbeque charcoal.Sales of Pimms rose by 300% compared to the same period the year before; beer sales also rose dramatically.Sales of salad items and barbeque food rose by around 40%.Hotel bookings at many resorts were significantly up on last year and in many places a reservation was hard to find!Supply of wheat, rice, maize and barley look as though they could be hit badly as predictions for harvests look gloomy.The price of most ice creams, salad items and so on did not rise in general during the heat wave although there may have been some differences on a regional basis. The likes of Tesco and Sainsbury would almost certainly not have raised prices but some local ice cream sellers may well have done.How would you explain this?The price of grain following the summer was predicted to rise.What impact might this increase in price of wheat, barley and maize have on other markets?