1. Unit One Entrepreneurship

2. What is an Entrepreneur? Name an Entrepreneur. Name an Entrepreneur. Give three reasons for becoming an Entrepreneur. Give three reasons for becoming an Entrepreneur. List three skills or abilities needed to be your own boss. List three skills or abilities needed to be your own boss. Are you now, or have you ever been, an Entrepreneur? Are you now, or have you ever been, an Entrepreneur? Is being an Entrepreneur a career move? Is being an Entrepreneur a career move?

3. Unit 1 Vocabulary Achiever Achiever Brainstorm Brainstorm Business Broker Business Broker Business Cycle Business Cycle Business Failure Business Failure Capital Capital Competition Competition Corporate Venture Corporate Venture Discontinuance Discontinuance Demand Demand Demographics Demographics Diminishing Marginal Utility Diminishing Marginal Utility Economics Economics Elastic Demand Elastic Demand Entrepreneur Entrepreneur Entrepreneurial Entrepreneurial Entrepreneurship Entrepreneurship Enterprise Zones Enterprise Zones Equilibrium Equilibrium Factors of Production Factors of Production Foundation Skills Foundation Skills Free Enterprise System Free Enterprise System Franchise Franchise Franchisee Franchisee Franchisor Franchisor Goodwill Goodwill Goods Goods

4. Unit 1 Vocabulary Gross Domestic Product Gross Domestic Product Investment Investment Innovation Innovation Inelastic Demand Inelastic Demand Market Structure Market Structure Monopoly Monopoly Need Need New Venture Organization New Venture Organization Niche Niche Oligopoly Oligopoly Online Business Online Business Opportunity Opportunity Outsourcing Outsourcing Profile Profile Profit Profit Role Model Role Model Scarcity Scarcity Services Services Specialty Magazine Specialty Magazine Start-up Resources Start-up Resources Supply Supply Strategic Alliance Strategic Alliance Trade Show Trade Show Trade Magazine Trade Magazine Values Values Venture Venture Want Want

5. Unit 1 Essential Question 1 What are the concepts and processes associated with successful entrepreneurial performance? What are the concepts and processes associated with successful entrepreneurial performance?

6. Essential Question 1A (MKT-EN-1A) What is entrepreneurship? What is entrepreneurship?

7. Entrepreneurship Entrepreneurship: The process of recognizing an opportunity, testing the market, and gathering resources necessary to go into business. Entrepreneurial: Acting like an entrepreneur or having a similar mind set.

8. Entrepreneurship Entrepreneur: An individual who undertakes the creation, organization, and ownership of a business venture. They accept the risks and responsibilities of business ownership to gain profit and personal satisfaction. Venture: A new business undertaking that involves risk.

9. Essential Question 1B (MKT-EN-1B) What are the characteristics of successful entrepreneurs? What are the characteristics of successful entrepreneurs?

10. Why Be An Entrepreneur? Rewards Being Your Own Boss Doing Something You Enjoy Having the Opportunity to be Creative Freedom to Set Your Own Schedule Controlling Your Salary Contributing to the Community Costs and Risks Working Long Hours Having an Uncertain Income Being Fully Responsible Risking One’s Investment

12. Persistent Willing to work until job is done, no matter what it takes.

13. Creative Looks for new ways to solve old problems.

14. Responsible Takes responsibility for decisions and actions.

15. Inquisitive Conduct research and asks questions to solve problems.

16. Goal-oriented Know where to go and how to get there.

17. Independent Sets own agendas and schedules.

18. Self-demanding Have high expectations of themselves.

19. Self-confident Believe in themselves.

20. Risk-taking Are not reckless. Looks for opportunity with a reasonable chance of success.

21. Restless Once their goals are achieved, they start looking for new challenges.

22. Action-oriented Doers as opposed to spectators.

23. Enthusiastic Energetic and passionate about their pursuits.

24. Foundational Skills Communication Skills – Person to person, telephone, and written skills. Math Skills – Basic math, record keeping, budgeting, and preparing financial statements. Problem-solving Skills – Able to use logic and creative solutions. Decision-making Skills – Able to choose the best option from among many.

25. Human Relations Skills Teamwork Skills – Coordinate and manage work teams, respecting others, being flexible, leadership. Social Skills – Able to interact well with employees, customers, and vendors.

26. Technical Skills Computer Skills – Understands the use of technology, word processing, spreadsheet, database, e-mail, and the Internet.

27. Business Skills Basic Business Skills – Understands how the economy works, and fundamental concepts of finance, marketing, and management. Keeps up to date on current events. Organizing and Planning Skills – Uses logical thinking and time management skills. Adaptability Skills – Able to change with the constantly changing business and economic environment.

28. Essential Question 1C (MKT-EN-1C) What are the reasons for planning an entrepreneurial businesses? What are the reasons for planning an entrepreneurial businesses?

29. Home-based Businesses 6 million in mid-1980’s 41 million in late 1990’s

30. Outsourcing Outsourcing: Contracting with another company for services. –Allows greater efficiency, saving time and money. –Decreases overhead investment or debt. –Lowers regulatory compliance burdens. –Makes companies more attractive to investors because more capital is sent directly into money making activities.

31. Service Businesses Services: Intangible things that businesses do for us that enhance our lives. Fastest growing business segment in the U.S. Economy today.

32. Internet Businesses Online Business: A business that conduct business by means of the internet. Small businesses that use the internet have grown 46% faster than those who do not. www.prairietumbleweedfarm.com

33. Essential Question 1D (MKT-EN-1D) What is the entrepreneurial discovery process? What is the entrepreneurial discovery process?

34. Recognizing Opportunity Entrepreneurial thinking is about generating ideas and recognizing opportunities. Entrepreneurial thinking is about generating ideas and recognizing opportunities. Creativity and Innovation: Creativity is the result of innovation: finding new ways of doing things. Creativity and Innovation: Creativity is the result of innovation: finding new ways of doing things. Idea vs. Opportunity: Idea vs. Opportunity: Ideas are generated though creative thinking. Ideas are generated though creative thinking. Opportunity is an idea that has commercial value. Opportunity is an idea that has commercial value. Many opportunities come from fulfilling a niche: a small specialize market. Many opportunities come from fulfilling a niche: a small specialize market.

35. Recognizing Opportunity Finding opportunity by understanding industry: Finding opportunity by understanding industry: An industry is a grouping of businesses with a common purpose. An industry is a grouping of businesses with a common purpose. The marketplace and economics of every industry is constantly changing which creates profitable niche opportunities. The marketplace and economics of every industry is constantly changing which creates profitable niche opportunities. Knowing the inner workings of the industry and the industry trends allows the entrepreneur to identify opportunity. Knowing the inner workings of the industry and the industry trends allows the entrepreneur to identify opportunity. Learn and understand what the customer problems are and create a business to fix them. Learn and understand what the customer problems are and create a business to fix them.

36. Essential Question 1E (MKT-EN-1E) What are current global trends and opportunities? What are current global trends and opportunities?

37. Global Trends Diminishing trade barriers Diminishing trade barriers NAFTA and CAFTA NAFTA and CAFTA EU EU Most favored nation status Most favored nation status Advances in technology have made the world “smaller” Advances in technology have made the world “smaller”

38. Global Trends Global Opportunities Global Opportunities Asia Asia Enormous and diverse continent Enormous and diverse continent China is the number one importer of US goods China is the number one importer of US goods Latin America Latin America Diverse community of nations with many cultural differences Diverse community of nations with many cultural differences Includes traditional as well as modern cultures Includes traditional as well as modern cultures Tends to make buying decisions based on family needs as opposed to individual needs Tends to make buying decisions based on family needs as opposed to individual needs

39. Global Trends Europe Europe Entrepreneurship and risk-taking are not highly encouraged Entrepreneurship and risk-taking are not highly encouraged Market difficult to define due to no common European culture Market difficult to define due to no common European culture Great cultural differences between individual nations Great cultural differences between individual nations High degree of socialism affects the thinking toward individual wealth as well as the distribution of wealth, individualism and power High degree of socialism affects the thinking toward individual wealth as well as the distribution of wealth, individualism and power Market segmentation a must to sell similar products across national borders Market segmentation a must to sell similar products across national borders

40. Global Trends Regions in transition Regions in transition Russia, Eastern European nations, African nations, and the Middle East Russia, Eastern European nations, African nations, and the Middle East Very risky opportunity due to unstable governments and US politics and policies Very risky opportunity due to unstable governments and US politics and policies Must thoroughly understand culture and business practices Must thoroughly understand culture and business practices How currency is exchanged and handled may affect profits How currency is exchanged and handled may affect profits

41. Essential Question 1F (MKT-EN-1F) How are opportunities for business creation determined? How are opportunities for business creation determined?

42. Learn to Recognize Opportunity Work with unrelated items. Get from here to there. Think outside the box. Think Creatively about Opportunity

43. Essential Question 1G (MKT-EN-1G) How are ideas for business generated? How are ideas for business generated?

44. Creative Sources of Ideas People Watching Demographic Changes – Characteristics of human populations and population segments. Become an Insatiable Reader Your Own Experiences Hobbies – many hobbies can be turned into successful ventures.

45. Creative Sources of Ideas Work –Look for opportunities at your work. –Is there room in the market for a similar business? –Are there gaps in the network of suppliers? –Is there a need for services which are not being provided?

46. Creative Sources of Ideas Consult Outside Sources –Trade magazines –Specialty magazines –Newspapers

47. Creative Sources of Ideas Consult Outside Sources - Trade shows and exhibitions - Internet - Government agencies

48. Starting Versus Buying a Business Being creative and opportunistic does not always mean that you must start a business from scratch. You may also enter a family business or buy an existing business.

49. Entering a Family Business Up-side  Families have a greater degree of trust and togetherness.  The family team can achieve more than others. Down-side  Owners can never get away from their business.  Families have difficulty viewing the venture and its problems objectively.  Only one-third of family run businesses survives the second generation.

50. Buying an Existing Business Positives  Has a location and a physical plant.  Has experienced employees.  Has goodwill – loyal customer base.  Has established procedures in place.  Has substantial inventory.  Has established trade credit.

51. Buying an Existing Business Negatives  Most businesses are put up for sale because they are not successful.  The business may have a poor reputation.  Inventory may be dated and equipment or facilities may need repairs.  Employees may lack the skills necessary to keep the business competitive.

52. Buying an Existing Business Franchise  A legal agreement to begin a new business in the name of a recognized company.  Franchisee – The buyer of a franchise.  Franchiser – The seller of a franchise.

53. Buying an Existing Business Franchise Has the same positives as other existing businesses with different negatives. -Purchase or initial investment costs are very high. -You may have to pay additional costs for advertising. -You may have to pay a percentage of your annual sales. -Lack of freedom. Must operate and run the business by the franchiser’s guidelines.

54. Unit 1 Essential Question 2 What are the fundamental concepts of business ownership? What are the fundamental concepts of business ownership?

55. Essential Question 2A (MKT-EN-2A) What is the relationship of competition to our private, free enterprise system? What is the relationship of competition to our private, free enterprise system?

56. Resources Resources: All the things used in producing goods and services. Also known as factors of production.

57. Factors of Production Land: Everything contained in the earth or found in the sea.

58. Factors of Production Labor: Full and part- time workers, managers, public workers and professional people.

59. Factors of Production Capital: Money as well as buildings, equipment and tools needed for the operation of a business.

60. Factors of Production Entrepreneurship: Skills of the people who are willing to risk their time and money to run a business.

61. Scarcity Scarcity: Condition that exists when people’s wants and needs exceed their resources.

62. Economic Systems 1What goods and services should be produced? 2How should the goods and services be produced? 3For whom should the goods and services be produced?

63. Economic Systems Market Economy: No government involvement in economic decisions. –Consumers decide what should be produced with their purchases. –Businesses decide how products will be produced. –People with money decide for whom products should be produced.

64. Economic Systems Command Economy: The government makes all economic decisions. –The dictator or central committee decides what should be produced. –The government decides how products will be produced because it runs all businesses. –The government decides for whom products should be produced.

65. Economic Systems Mixed Economy: No economy is 100% market or command therefore, to what degree or how much does the government get involved in the market?

66. Free Enterprise System People have the right to make economic choices. Can choose what products to buy. Can choose to own property. Can choose to start a business and compete with others.

67. Competition Competition: The struggle between companies. Forces companies to become efficient. Keeps prices down and quality up.

68. Types of Competition Price Competition: Goes on the assumption, all things being equal, customers will buy the product that is lower in price. Non-price Competition: –Quality –Service –Location –Reputation

69. Risk & Profit Risk: Potential for loss or failure. –As the potential for earning gets greater, so does the risk. Profit: Money left after all expenses. –Main incentive of a free enterprise system. –Risk of failure serves as a positive function to encourage quality.

70. Market Structures Market Structure: Refers to the nature and degree of competition among business operating in the same industry. The market structure will affect the market price. Market structure groupings: –Perfect Competition –Monopolistic Competition –Monopoly –Oligopoly

71. Essential Question 2B (MKT-EN-2B) What are the effects of competition on buyers and sellers? What are the effects of competition on buyers and sellers?

72. Goods and Services Goods and services are the products our economic system produces to satisfy customer needs and wants. –Goods: Tangible products. –Services: Intangible products. –Needs: Basic requirement for survival such as food, water, clothing, and shelter. –Wants: Anything that is not needed for survival.

73. Supply and Demand Demand: The amount of goods and services that consumers are willing and able to buy.

74. Supply and Demand Law of Demand: Price is inversely proportional to demand. P   D  PRICEPRICE QUANTITY

75. Supply and Demand Types of Demand Elastic: A small change in price causes a significant change in demand. Inelastic: Any change in price has little to no effect on demand. –No acceptable substitute. –Price change is small relative to buyer income. –Product is a perceived necessity.

76. Supply and Demand Supply: The amount of goods and services that producers are willing and able to provide.

77. Supply and Demand Law of Supply: Producers are more willing to supply products in greater amounts when the price is high. P   S  PRICEPRICE QUANTITY

78. Supply and Demand Surplus: Occurs when quantity supplied exceeds quantity demanded. PRICEPRICE QUANTITY

79. Supply and Demand Shortage: Occurs when quantity demanded exceeds quantity supplied. PRICEPRICE QUANTITY

80. Supply and Demand Equilibrium: Occurs when the amount of product supplied equals the amount of product demanded. PRICEPRICE QUANTITY

81. What Entrepreneurs Contribute Entrepreneurs are the mechanism by which the economy turns demand into supply. Entrepreneurs are a principal source of venture capital. Entrepreneurs provide jobs. The most successful entrepreneurs change society. Entrepreneurs are the catalyst that make economic progress happen.

82. Unit 1 Essential Question 3 What are the concepts, systems, and tools needed to gather, access, synthesize, evaluate, and disseminate information for use in making business decisions? What are the concepts, systems, and tools needed to gather, access, synthesize, evaluate, and disseminate information for use in making business decisions?

83. Essential Question 3A (MKT-EN-3A) How is technology used in marketing information management? How is technology used in marketing information management?

84. Technology in Market Research Research methods include: documentation, observation, experiment, test, simulation and market investigation Research methods include: documentation, observation, experiment, test, simulation and market investigation The main research tool is the questionnaire. The main research tool is the questionnaire. Pen and paper methodPen and paper method Online formatsOnline formats

85. Technology in Market Research Point of Sale (POS) data gathering include: Point of Sale (POS) data gathering include: NameName Zip CodeZip Code AddressAddress Telephone numberTelephone number Internet data gathering methods include: Internet data gathering methods include: Website tracking including app trackingWebsite tracking including app tracking Social media data miningSocial media data mining

86. Technology in Market Research Geographical Information Systems (GIS) is used in the site selection analysis. Geographical Information Systems (GIS) is used in the site selection analysis. Analyzes different factors such as infrastructure, physical capital, knowledge capital, customer profiles and geodemographic informationAnalyzes different factors such as infrastructure, physical capital, knowledge capital, customer profiles and geodemographic information Answers the question “where should we our new business, new store, or new distribution service?”Answers the question “where should we our new business, new store, or new distribution service?”

87. Technology in Market Research Experimental technologies being developed include: Experimental technologies being developed include: Neuroscience: Measures brain waves and other biometric measures like temperature, blinking, breathing, and pulse to assess reactions to brands, logos and experiences on a continuous basis.Neuroscience: Measures brain waves and other biometric measures like temperature, blinking, breathing, and pulse to assess reactions to brands, logos and experiences on a continuous basis. Telepresence: Allows for focus groups to be conducted using multiple locations in a virtual room.Telepresence: Allows for focus groups to be conducted using multiple locations in a virtual room.

88. Technology in Market Research Experimental technologies being developed include: Experimental technologies being developed include: Eye tracking: Measures how ad elements are perceived, retained and recalled to explain how advertising is processed or how consumers process packaging in stores.Eye tracking: Measures how ad elements are perceived, retained and recalled to explain how advertising is processed or how consumers process packaging in stores. Implicit association analysis: Uses reaction times or accuracy on completing tasks to measure the motivational power of logos or brand names.Implicit association analysis: Uses reaction times or accuracy on completing tasks to measure the motivational power of logos or brand names.

89. Essential Question 3B (MKT-EN-3B) What is demographic, geographic, psychographic, and behavioral segmentation? What is demographic, geographic, psychographic, and behavioral segmentation?

90. Market Segmentation Geographics Segmentation of the market based on where people live. Segmentation of the market based on where people live.

91. Market Segmentation Demographics Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc. Statistics that describe a population in terms of personal characteristics. These include age, gender, income, ethnic background, education, etc.

92. Market Segmentation Psychographics Involves the study of customers based on lifestyle, and the attitudes and values that shape it. Involves the study of customers based on lifestyle, and the attitudes and values that shape it.

93. Market Segmentation Behavior Segmentation Market segmentation that groups consumers based on specific behavioral patterns they display when making purchasing decisions. Market segmentation that groups consumers based on specific behavioral patterns they display when making purchasing decisions.

94. Essential Question 3C (MKT-EN-3C) What options do businesses have to obtain market research data (i.e. primary and secondary research)? What options do businesses have to obtain market research data (i.e. primary and secondary research)?

95. Types of Data Primary data: Data obtained for the first time and used specifically for the particular problem or issue under study. Primary data: Data obtained for the first time and used specifically for the particular problem or issue under study. Secondary data: Data already collected for some purpose other than the current study. Secondary data: Data already collected for some purpose other than the current study.

96. Data Collection Primary data can be obtained by: Primary data can be obtained by: - the survey method - the observation method - the experimental method Secondary data can be obtained by a number of agencies. Secondary data can be obtained by a number of agencies. - Internet Sources - US and Government Sources - Specialized Research Companies - Business Publications and Trade Organizations

97. Essential Question 3D (MKT-EN-3D) What are the characteristics of effective data collection instruments? What are the characteristics of effective data collection instruments?

98. Data Sampling When designing a survey, marketers must determine the number of people to include in their survey. When designing a survey, marketers must determine the number of people to include in their survey. Population: The entire target group of people under study.Population: The entire target group of people under study. Sample: Part of the target population that represents it accurately.Sample: Part of the target population that represents it accurately. Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive.Bias: Inaccuracies introduced into the results due to errors in measurement, coverage, and nonresponsive. Error: Determined by the sample size with respect to the population. The greater the sample size,the lower the margin of error.Error: Determined by the sample size with respect to the population. The greater the sample size,the lower the margin of error.

99. Data Sampling 1. Provide clear and detailed instructions for completing the data collection instrument. 2. Provide definitions and clarifying information for individual items and terms. 3. Make definitions of data elements consistent with standard definitions and analytic conventions when appropriate and feasible.

100. Data Sampling 4. Determine whether another organization is already collecting data related to the items you plan to collect. 5. Any deviations from accepted usage should be explained. 6. Indicate subpopulations to include and/or exclude in the reporting. 7. Be clear about the date or time period the survey should reflect.

101. Data Sampling 8. If more than one analytic convention is commonly used for a given measure, indicate the preferred convention. 9. Use standard language. Avoid jargon and abbreviations. Keep questions short and simple. 10. Make categories as concrete as possible. Use simple and exact terms.

102. Data Sampling 11. If response categories are supposed to be mutually exclusive and exhaustive, make sure all possible categories are included on the survey. If in doubt about whether categories are exhaustive, include a response option of "other, please specify." 12. If data may be unknown or missing, be sure to include an “unknown/missing” option.

103. Data Sampling 13. Provide a “not applicable” response for questions that may not be applicable to all respondents. 14. Do not combine two separate ideas inappropriately and request a single response. 15. Design the item sequence of the survey such that it increases the respondent's ability to complete the survey.

104. Data Sampling 16. Keep topic-related questions together and provide transitions between topics. 17. Be sure that return address, fax number, and contact information are included on the form itself as well as in accompanying letter. Consider including an addressed, postage-paid envelope to return the survey.

105. Essential Question 3E (MKT-EN-3F) What techniques are used to process marketing information? What techniques are used to process marketing information?

106. Processing Marketing Information Information processing refers to the collection, storage, manipulation, distribution and presentation of data. Information processing refers to the collection, storage, manipulation, distribution and presentation of data. Analyzed by using computers or by manual methods.Analyzed by using computers or by manual methods. Databases and spreadsheets make it very easy to analyze information.Databases and spreadsheets make it very easy to analyze information. Information can be presented in line graphs, histograms, bar charts, pie charts, etc. so it is easy to make sense of the information.Information can be presented in line graphs, histograms, bar charts, pie charts, etc. so it is easy to make sense of the information.