Your Potential as an Entrepreneur Entrepreneurship: Ch 2 Your Potential as an Entrepreneur

Why Be an Entrepreneur? Rewards of Entrepreneurship Being your own boss Biggest reward of owning a business Gives them the freedom to make their own business decisions Final word on all aspects of the operation

Why Be an Entrepreneur? Rewards of Entrepreneurship Doing Something You Enjoy Derive special satisfaction from creating and developing the enterprise around a special interest

Why Be an Entrepreneur? Rewards of Entrepreneurship Having the opportunity to be creative Entrepreneurs are able to shape a business in ways employees can not When business owners have a creative idea, they can act on it

Why Be an Entrepreneur? Rewards of Entrepreneurship Having the freedom to set your own schedule Option of working at home, at the business, or at whatever location

Why Be an Entrepreneur? Rewards of Entrepreneurship Having job security Employees are not guaranteed job security Entrepreneurs control their own destiny

Why Be an Entrepreneur? Rewards of Entrepreneurship Making more money Business owners earnings are limited only by the potential of the business Being recognized within the Community

Risks of Entrepreneurship There is a number of costs and risks associated with starting your own business Competition Rivalry amongst businesses for consumer dollar Working long hours During start-up, the survival of the new business depends on the entrepreneur’s ability to make timely decision

Risks of Entrepreneurship Having an Uncertain Income Business owners can make more money then their employees make No guarantee pay check

Risks of Entrepreneurship Being Fully Responsible Entrepreneur must be willing to take on a wide variety of task and see them through to competition

Risks of Entrepreneurship Risking One’s Investment Investment – amount of money a person puts into their business as Capital (includes building, equipment, tools, and other goods needed to produce a product)

What does is it take to be an Entrepreneur Who are Entrepreneurs Background 47% of entrepreneurs are under the age of 35 40% of entrepreneurs have high school diploma’s 16% were started under the age of 25 37% have had some college 33% completed college Many were influenced by a role model

What does is it take to be an Entrepreneur Who are Entrepreneurs Entrepreneurial characteristics Persistent – work until a job is done Creative – Look for new ways to solve old problems Responsible – Do not pass the buck Inquisitive – Conduct research and ask questions to solve problems Goal-Oriented – Set and achieve goals

What does is it take to be an Entrepreneur Who are Entrepreneurs Entrepreneurial characteristics Independent – Want to make their own decisions Self-Demanding – High expectations for themselves Self-Confident – Believe in themselves and trust their own abilities Risk-Taking – Take calculated risks, but they are not reckless

What does is it take to be an Entrepreneur Who are Entrepreneurs Entrepreneurial characteristics Restless – Looking for new challenges once they’ve achieved their goals Action-Oriented – Doers not speculators Enthusiastic – Energetic and passionate about their pursuits

What does is it take to be an Entrepreneur Who are Entrepreneurs Foundation skills – Skills that entrepreneurs use regularly in setting up and running a business Communication skills – Need person to person, telephone, written, and electronic communication skills. Need listening skills Math skills – Basic math skills are needed to budget, make initial purchase decision, calculate potential profit, and put together financial statement

What does is it take to be an Entrepreneur Who are Entrepreneurs Foundation skills Problem solving skills – Come up with ideas to solve problems Technical and Computer skills – Important for setting up the processes and technology of the business Decision-making skills – Be able to choose the best option from among many

What does is it take to be an Entrepreneur Who are Entrepreneurs Foundation skills Organizing and Planning skills – Requires logical thinking and good time-management Teamwork skills – Coordinate and manage work teams Social skills – Interact well with employees, customers, and vendors

What does is it take to be an Entrepreneur Who are Entrepreneurs Foundation skills Adaptability skills Basic Business skills – Have an understanding how the economy works and understand the fundamental concepts of finance, marketing, and management

What does is it take to be an Entrepreneur Build your Potential as an Entrepreneur Profile – set of characteristics or qualities that identifies a type or category of person Strengthen your entrepreneurial characteristics Determine the current strengths of your entrepreneurial characteristics Thinks of the characteristics as habits you can improve Develop your weak characteristics

What does is it take to be an Entrepreneur Build your Potential as an Entrepreneur Strengthen your entrepreneurial characteristics Reading – Articles and books about entrepreneurs Writing – Brief essays about living or historical figures who overcome obstacles to achieve success Observing – Watch films or videos about successful individuals Solving – Solve case problems

What does is it take to be an Entrepreneur Build your Potential as an Entrepreneur Think like an achiever Achiever – Person with a record of successes Entrepreneurs are motivated by a need for achievement Set out to be the best Write your goals down Pursue your goals with confidence and commitment Set your sights on accomplishing the extraordinary View setbacks as opportunities to learn and grow

What does is it take to be an Entrepreneur Build your Potential as an Entrepreneur Develop Your Entrepreneurship Skills To be successful you need to develop foundation skills Three step process to gain competency in foundation skills Learn the techniques needed to use the skill Put the skill to work in real world situations Ask yourself whether you got the results you wanted

What does is it take to be an Entrepreneur Build your Potential as an Entrepreneur Develop Technical and Business Skills You can develop technical skills In school Through work experience Reading Obtain employment in a similar or related business