Presentation on theme: "BDI 3C Unit 1 – Enterprising People and Entrepreneurs."— Presentation transcript:
BDI 3C Unit 1 – Enterprising People and Entrepreneurs
Chapter 1 What is Entrepreneurship?
Entrepreneurs Past and Present Who are they? People who own and operate business ventures Who does it? All types of people from different backgrounds, ages and skills Business can be small or large
Entrepreneurs Past and Present How do they do it? Try to identify a need that they have or that they see that others Take steps to create a product or service that satisfies that need
Needs vs. Wants Needs Are essential for survival They can be “real” or “psychological” Wants Go beyond basic needs and make people feel good or help them achieve a goal.
Needs vs. Wants onomics/needsandwants/
Needs vs. Wants Activity Vacation to the Moon
Entrepreneurs Past and Present EntrepreneursEmployees Entrepreneurs assume risk when starting their business Faces potential loss of the business and other assets Do not assume risk May face loss of wages or their jobs if the business should fail to have the desired results
Entrepreneurs Past and Present Why would people want to become an entrepreneur? Want to leave a fast-pasted corporate job Want to work from home Want to pursue a personal dream Discovered a need that others will desire as well
Is Entrepreneurship Right for You? Characteristics of a Successful Entrepreneurs 1. Independent – they want to make their own decisions and pursue something they like. 2. Self-confident – critical that they believe in themselves so others will too. 3. Determination and Perseverance – many will try to stand in your way so you need to be able to keep pushing forward.
Is Entrepreneurship Right for You? Characteristics of a Successful Entrepreneurs 4. Goal-Oriented – You can set a goal and focus on what needs to be done to achieve your goal. 5. Need to Achieve and often set high standards – constantly setting new goals and challenges to keep interested and focused.
Is Entrepreneurship Right for You? Characteristics of a Successful Entrepreneurs 6. Creative – think of new ways to market their business and always seeking solutions to problems found. 7. Able to act quickly – not afraid to make decisions and act so they can beat their competition or react in a changing environment.
Venture Profile 1. Read the case study on page 6 “Three Blondes Cook up Sweet Success”. 2. Answer the five questions at the end of the case. 3. 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.
The 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.
The 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.
Entrepreneurial Ventures Business ideas that are conceived, initiated and operated by a person or group of people. They fit into the following categories: 1.For profit/not for profit 2.Large scale/small scale 3.Service/goods production 4.Physical/virtual 5.Local/provincial/national/international
Impact on the Community 1. Job Creation ◦ Multiplier Effect – when entrepreneurship creates jobs in the local community. 2. New Ideas ◦ Encourages the creation of a broader range of goods and services that would otherwise exist. 3. Economic Benefits ◦ Through competition, entrepreneurs not only help lower prices, but also improve a society’s standard of living.
Impact on the Community 4. Political Benefits ◦ Entrepreneurship 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.
Intrapreneurship When 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.
E. D. Smith Rewards Employees with Bonus 1. What did E. D. Smith do to encourage intrapreneurship? 2. Why to you think that the company supports this kind of activity? 3. What kind of environment should corporations provide if they want to encourage intrapreneurship? 4. What can companied do to encourage their employees to generate new ideas or make suggestions for improved productivity?
Supply and Demand An 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.
Supply and Demand
The Heat Wave of 2003 Supply and Demand Activity
The Heat Wave of 2003 Now 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?