Chapter 1 Lesson 2 Entrepreneurship

What You’ll Learn What is an entrepreneur The difference between managers and entrepreneurs The need for entrepreneurship The importance of small business

Initiation Does anyone know someone that owns a small business? Would they be considered an entrepreneur or a manager? Why?

Manager? What is a manager? Paid to perform a management functions within a company Work for a company but do not own it. Receive salaries

Entrepreneur What is an entrepreneur? People who launch and run their own businesses Start with many of the basic management functions but as their company grows they hire professional managers Much riskier because they can go out of business and loose the money they invested. Can also be more rewarding-make all the decisions

What is an Entrepreneur? What characteristics do you think are important in each profession? Complete chart. Manager Entrepreneur

Entrepreneurial Challenges Wally Amos created a cookie empire based on his gourmet chocolate chip cookie. What kinds of business problems do you think he faced when he started his company? Start-up money, Attracting customers, Making enough revenue

Entrepreneurial Characteristics Bill Gates cofounded Microsoft as a small business with high school friend. What special personal characteristics do you think entrepreneurs need in order to succeed? Willingness to take risks, Work long hours, Small salaries early on, & Accept possibility of failure

Types of Ownership Sole Proprietorship – Business owned by a single individual (proprietor) Partnerships – An association of two or more persons who jointly own a for-profit business Corporations – A business formed under state or federal statutes that is authorized to act as a legal person

The Importance of Small Business Small business = a company that is independently owned and operated Owners perform all management tasks Small Business Association (SBA) lends money to businesses that have fewer than 100 employees. 99% of US businesses are considered small Many successful big businesses began as small More innovative than larger businesses

Activity Thinking like an entrepreneur: Work in a small group to develop a new innovative product or service. Describe your product by answering What makes this product or service special/unique? Why would anyone buy or pay for it? A quick method of advertising your product or service Share

Writing Activity Write a ½ page – 1 page word proposal for a type of business you would like to own. Include information on where you would locate the business, the types of products or services you would sell, and your plan for success

Assessment P.27 Fact and Idea Review #1-4 Critical Thinking #1 & 2

Chapter 1 Assessment P.28-29 Recalling Key Concepts #1-4 Thinking Critically #1-5 Applying Management Principles (Won’t have to present to class)

Block Activities Complete the following pages in your workbook: P.1-3; P.5-13