Aim: How do young Americans become successful entrepreneurs? Objective: SWBAT understand the roots of entrepreneurship.

Do now: What is an entrepreneur?

What is an Entrepreneur? Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk. Initiative: Readiness and ability in initiating action. Risk: The hazard or chance of loss.

What is an Entrepreneur? “An entrepreneur is someone who perceives an opportunity and creates an organization to pursue it.“

The entrepreneur is a specialist in taking on risk He “insures” workers by buying their products (or labor services) for resale before consumers have indicated how much they are willing to pay.

Who is an Entrepreneur? In the U.S., approximately 4% of the adult population is actively involved in starting a business at any given time. One out of every two adults has tried to start a business at some time in his or her life.

Distinguished between risk, which is insurable, and uncertainty, which is not Uncertainty includes things like changes affecting the marketing of consumer products (e.g., fashion trends) Profit compensates entrepreneur for bearing uncertainty

In general, even entrepreneurship researchers can’t agree on what the “best” definition of entrepreneurship is Two main camps Discovery, evaluation, and exploitation of opportunities Starting new businesses

Entrepreneurship is a Multi-step Process Recognize Opportunities Evaluate Exploit

The Importance of Value Creation A successful business is one that delivers value to its customers and creates value for its owners.

QUESTION #2 Why be an entrepreneur?

Why should you be interested? Many young people have succeeded: Michael Dell - Dell Computers Frank Carney - Pizza Hut Paul Orfalea - Kinko’s Fred DeLuca - Subway. Kristy Taylor - SkinCareRx.com Opportunity to reap large profits

Why NOT to be an Entrepreneur Uncertainty of income Risk of losing entire invested capital Lower quality of life until business gets established High levels of stress Complete responsibility

Closing Thoughts “I find that the harder I work, the more luck I seem to have.” Thomas Jefferson

Closing Thoughts “Whether you think you can, or that you can’t, you are usually right.” Henry Ford

Closing Thoughts “I have not failed. I have just found 10,000 ways that won’t work.” Thomas Edison