Entrepreneurship CHAPTER 3 SECTION 1

 To begin the entrepreneurial process, the first step is to identify a business opportunity.  The internet has changed the way business is conducted.  Online business – business that conducts business by means of the internet

 Service businesses dominate the modern American economy.  Services – intangible goods  Homesourcing – the transfer of service industry employment from offices to home-based employees  Sustainability – a venture seeks to achieve economic, environmental, and social goals without compromising the ability of future generations to meet their own needs

 Social entrepreneurs start their businesses to improve society.  Social entrepreneurs measure their success by the positive impact they make on society.  Outsourcing – is contracting with other companies for services

 Outsourcing allows a small business to focus on what it does best while tapping into outside expertise.  Outsourcing benefits: 1.Greater efficiency 2.Decreases overhead 3.Lowers regulatory compliance 4.Start new projects quickly 5.More attractive to investors

 Strategic alliance – form a partnership with another company  Corporate venture – a new business started inside a large corporation  Innovation – finding new ways to do things  Opportunities are ideas that have commercial potential

 Niche – small specialized market  Steps to creativity: 1.Practice brainstorming 2.Look at ordinary items in new ways 3.Find creative solutions to common problems 4.Connect unrelated items

 Demographics – personal characteristics that describe a population  Most successful entrepreneurs stay on top of what is going on in business and in the world in general.  Good business ideas often target problems observed in everyday life.  Many hobbies can be turned into successful ventures

 Trade magazine – a periodical published for specific types of businesses and industries  Specialty magazine – a periodical that targets people with special interests in sports, camping, fashion, and a variety of other areas  Trade show – vendors and manufacturers introduce new items and promote established products and services