Entrepreurship

Chapter 1 Should you become an Entrepreneur? Lesson 1.1 – Entrepreneurs: Present and Past Goals Define entrepreneurship Learn about the history of entrepreneurship Identify the impact of entrepreneurs and small business today.

What is an entrepreneur? Entrepreneurs are people that own, operate and take the risk of a business venture. They are engaged in entrepreneurship, or the process of running a business of their own. Entrepreneurs create all types of businesses. Some own tiny craft shops, others own huge construction companies. They try to identify the needs of the market place and meet those needs with their supplies. When they succeed, their business flourishes and they make profit. When they fail, their companies decline and they may go out of business.

Check Point: (1) How are entrepreneurs different from employees? Employees vs. Entrepreneurs Entrepreneurs assume risk, this makes them different from employees, or people who work for someone else. Both may make decisions, but only the entrepreneur is affected by the decision. Why do some People Become Entrepreneurs? Some want to leave the corporate world Some want to work from home Some want to pursue a personal dream Types of Entrepreneurial Businesses Manufacturing Businesses – produces the products they sell Wholesaling Businesses – sells products to people other than the final customer Retailing Businesses – sells products directly to the people that use them Service Businesses – sells services rather than products Check Point: (1) How are entrepreneurs different from employees? (2) List a company you are familiar with for each type of entrepreneurial business.

Entrepreneurs in U.S. History During colonial years, entrepreneurship flourished. They raised crops, such as rice and tobacco. They also worked as bankers, merchants, silversmiths, and candle makers. After the American Revolution, the U.S> began to industrialize. Entrepreneurs invented machines that increased productivity and helped the economy grow.

Entrepreneurs in U.S. History 19th Century The reaper, by Cyrus McCormick in 1831. This machine was used to harvest crops. The company started off $60.00 in Chicago. The company the marketed the reaper evolved into International Harvester, which produced farm equipment for many years. Today is it called Navistar International Transportation Company and manufactures international brand trucks. Lydia Moss Bradley made millions of dollars in investments and real estate. She also founded Bradley University in 1986. Early 20th century Henry Ford developed the Model-T automobile, selling at a reasonable price. Olive Ann Beech co-founded the Beech Aircraft Company with her husband/ Clarence Birdseye developed a packaged frozen food company in the 1920’s. The First Woman Millionaire Madam C.J. Walker – Started making her own hair treatments and offering them to other African American women. She sold door-to-door and purchased newspaper advertisements. She then opened a college where she trained women to use and sell the product, which now includes complexion soap and dental cream.

Entrepreneurs in U.S. History Check Point: Name on historical entrepreneur and describe what he or she did. Entrepreneurs Today More than 5.8 million small business contribute billions of dollars to the US economy each year. Small companies can be more creative and take more risks than large companies. Their experimentation and innovation lead to technological change and increased productivity. This makes small businesses a significant part of the American economy. Check Point: Why are small businesses so important to our economy

Lesson 1.2 Is Entrepreneurship Right for You? Goals: Identify the characteristics of successful entrepreneurs Assess whether you have what it takes to be successful in your own business “Entrepreneurship can be difficult. Many companies go out of business. This is often caused b pool planning, lack of business knowledge or entrepreneurial characteristics, or choosing the wrong business” (9).

Successful Entrepreneurs are: Independent: They want to make their own decisions and do something they enjoy. Self-confident: make choices alone and bounce back from a poorly made decision. Determined and have perseverance: they persist through hard times until goals are met. Goal-orientated: they know what they want, and they are able to focus on achieving it. Needy to achieve and to set a high standard for themselves: They are constantly setting challenging new goals. Creative: They think of new ways to market their business and look for solutions to problems. Able to act quickly: they are not afraid to make quick decisions when necessary.

Did you Know? There are 8.5 million women-owned businesses in the United States. These businesses account for more than one-third of all businesses and generate more than $3.1 billion dollars in revenue.

Assess your suitability for Entrepreneurship Entrepreneurship is not for everyone. Some people lack the qualities needed to become successful entrepreneurs. Others lack the aptitude needed to run a business. For others, the benefits of entrepreneurship do not outweigh the disadvantages. To determine if entrepreneurship is right for you, you should first do a self-assessment, o an evaluation of your strengths and weaknesses. You can list your strengths and weaknesses on a sheet of paper. You can ask others if they agree. There are also tests you can take to assess your abilities.

Self-Assessment Assess your interests Assess your aptitude JOB ATTRIBUTES CHECKLIST ❑ 1. I enjoy working with numbers. ❑ 2. I enjoy working outdoors. ❑ 3. I enjoy working with my hands. ❑ 4. I enjoy selling. ❑ 5. I like working with people. ❑ 6. I prefer to work alone. ❑ 7. I like supervising other people. ❑ 8. I like knowing exactly what I am supposed to do.

Assess the Advantages of being an Entrepreneur Many people see significant advantages in owning their own businesses. Some of the biggest advantages include the following: 1. Entrepreneurs are their own bosses. Nobody tells an entrepreneur what to do. Entrepreneurs control their own destinies. 2. Entrepreneurs can choose a business that interests them. Entrepreneurs work in fields that interest them. Many combine hobbies and interests with business. 3. Entrepreneurs can be creative. Entrepreneurs are always implementing creative ideas they think of themselves. 4. Entrepreneurs can make large sums of money. Entrepreneurship involves risk, but if the business is successful, the business owner will reap the profi ts.

Assess the Disadvantages of being an Entrepreneur As the disadvantages show, entrepreneurship is not for the faint of heart. All prospective entrepreneurs must weigh the advantages and disadvantages before making the decision to start a business. Disadvantages 1. Entrepreneurship is risky. Just as there is the chance to earn Large sums of money, there is the possibility of losing money and going out of business. 2. Entrepreneurs face uncertain and irregular incomes. Entrepreneurs may make money one month and lose money the next. 3. Entrepreneurs work long hours. Entrepreneurs are never really finished with their jobs. They can work long, irregular hours. They receive no paid days off and often work evenings and weekends. 4. Entrepreneurs must make all decisions by themselves. Unless they have partners, entrepreneurs have the final responsibility for all decisions that are made regarding the business.

“The thing you have to remember is you cant blame anyone else for your mistakes” Vinita Gupta

Identify Business Opportunities and Set Goals Section 1.3 Recognize different businesses you could start Identify your own personal goals

Investigate Opportunities The Small Business Organization (SBA) is an organization that exists to help small businesses and their owners. It publicizes important information Talks to entrepreneurs and attends trade shows Tradeshows – Special meetings where companies display their product. Checkpoint: How can you find out about various business opportunities?

Compare Different Opportunities Ask yourself these questions… Is there a market in my community for this type of business? Will people buy my product or service? How much money will it take to start this business? How many hours a week is it likely to run this business? Am I willing to commit this much time? What are the risks associated with this business? Does my background prepare me to run this kind of business? How much money could I make running this business? Checkpoint: What are some questions you need to ask to help determine if the business opportunities you listed are realistic?

Setting Goals For everything you do in life, you set goals. As an entrepreneur you need to set financial and non-financial goals. Financial Goals – These include how much money you will earn and how long it will take to pay off debts. If one of your goals is to make a lot of money in the beginning, you will probably be disappointed, because it usually takes a while for a business to be financially stable.

Non-Financial Goals Most people who open their own business do it for more than money, they do it for personal satisfaction.

Review How are entrepreneurs different from employees? How are employees different from managers? Why do some people go into business for themselves? Name and describe the four types of business. Name 2 early American entrepreneurs and what they did. Why are entrepreneurial companies important to our economy?

Review What are the 7 characteristics of successful entrepreneurs? Why is it important for a beginning entrepreneur to perform a personal assessment? List four advantages and four disadvantages of entrepreneurship. Why should you set financial and non-financial goals for yourself as an entrepreneur?