Entrepreneurs and Enterprising People Unit Notes

Enterprising: What does it mean? The enterprising children opened a lemonade stand. Enterprising: showing initiative and willingness to undertake new projects; ready to undertake important, difficult or new projects, energetic in carrying out an undertaking Are enterprising people also entrepreneurs? Are entrepreneurs enterprising?

Enterprising/Entrepreneurial Opportunities Market-pulled opportunities Developing a solution to a problem and taking advantage of it E.g., Bombardier snowmobile Product-driven opportunities Developing an idea first and then looking for a marketing opportunity E.g., 3M post-it notes

Enterprising vs. Entrepreneur

Who are Entrepreneurs? What do entrepreneurs look like? Age? Sex? Marital status? Nationality? Background? Born or made? Let’s do some research!

Desirable Skills of Entrepreneurs Numeracy Leading Literacy Stress management Financial management Record keeping Time management Communication Decision making Negotiation Organization Planning

Desirable Characteristics of Entrepreneurs Willing to take a risk Be goal oriented Positive attitude Be innovative, creative and versatile Strong sense of commitment Be persistent Hardworking and energetic Strong need to achieve and seek personal accomplishment Have spirit of adventure Self-confident and self- reliant

Undesirable Characteristics for Entrepreneurs Invulnerability Being macho Being anti-authoritarian Impulsiveness Perfectionists Know-It-All

Contributions of Entrepreneurs to Society Create new ventures that provide new, improved products and services Find new ways of making products and services available to more people Compete with each other to be the “best” which improves production (product quality) and keeps prices down Create jobs in the community through their new venture

Social Responsibility Doing things to contribute to the “common good” or contribute positively in the community Goal of socially responsible business is to have a positive impact on society In the past, company’s success was measured only by net income Now, society demands more Businesses must consider social and community consequence of their actions

Contributions of Entrepreneurs to Society Increase the quantity of products and services we produce in our economy be creating new ventures Create new opportunities for others through their initiatives and innovations Provide communities with a spirit of energy, initiative and potential for progress

Social Responsibility Investors, customers and employees want to know that companies they invest in, buy from and work for positively impact society while achieving financial success

How does a business act socially responsible? Treats employees fairly Makes decisions that help protect environment Contributes to charities Contributes to community development Can you build a socially responsible business? http://www.pbs.org/opb/thenewheroes/engage/b usiness.html

The Entrepreneur’s Dozen Examines needs, wants and problems for which he/she feels there is something that can be done

Narrows the possible outcomes down to one specific opportunity

Thinks of an innovative idea

Researches the opportunity and idea thoroughly

Enlists the best source of advice and assistance

Plans the venture and looks for possible problems that may arise

Ranks the risks and possible rewards

Evaluates the risks and possible rewards and makes a decision

Never hangs on to an idea if research shows it won’t work

Employs the resources necessary if the decision is made to go ahead with the venture

Understands that any entrepreneurial venture will take a great deal of long, hard work

Realizes a sense of accomplishment from successful ventures and learns from failed ones to achieve success in the future

Advantages of Entrepreneurship Be your own boss Entrepreneurs control their own destiny. Choose a business that interests you Combine hobbies and interests Be creative Implement creative ideas you have Make lots of money Entrepreneurs can make lots of money if their business succeeds.

Disadvantages of Entrepreneurship Entrepreneurship is risky All entrepreneurs face the possibility of failure, going out of business or losing business. Uncertain and irregular income You won’t know for sure how much money you’ll have each month. Long hours Evenings and weekends are often work hours. Entrepreneurs do not get paid for time off. Make all decisions yourself You are responsible for everything

Entrepreneur Quiz True or False? Entrepreneurs are born, not made. Entrepreneurs are gamblers. Entrepreneurs are completely independent. Entrepreneurs face greater stress than corporate managers. Most new businesses end in failure within five years. Money is the most important startup ingredient. Entrepreneurs are born, not made. False. While there is some debate, the skills and characteristics necessary for entrepreneurial success can be developed. Entrepreneurs are gamblers. False. Entrepreneurs are not gamblers, they are calculated risk-takers. Entrepreneurs are completely independent. False. They are not completely independent, they enlist the help and advice of other professionals: bankers, mentors, etc. Entrepreneurs face greater stress than corporate managers. False. Both have levels of stress. The entrepreneur's stress level may be less than the corporate manager because they love what they do. Most new businesses end in failure within five years. True. Money is the most important startup ingredient. False. Money is very important but the idea is the most important. False.

True or False? Talented entrepreneurs achieve success within the first year. Most entrepreneurs do not complete high school. Entrepreneurs thrive on accomplishment more than power. Entrepreneurs are generally young (25 and under)and full of energy. Talented entrepreneurs achieve success within the first year. False. Even talented entrepreneurs do not usually achieve success in the first year. It usually takes 3- 5 years to be successful. Most entrepreneurs do not complete high school. False. Most entrepreneurs complete high school and often post-secondary education. Entrepreneurs thrive on accomplishment more than power. True. Entrepreneurs are generally young (25 and under)and full of energy. False. They are full of energy but usually between 25 and 40 years of age.