DO NOW: In your notebook: If you had the opportunity to start your own small business: What type of business would it be? Do you see a need for it in the community? How many hours a week would you work? How much start up money would you need? How many years would it take to be profitable? Do you know anyone who has started their own business?

Entrepreneurship and Small Business Chapter 5 Intro to Business

Do you have the entrepreneurial qualities to make a small business work? Research shows that successful entrepreneurs have common characteristics. Are you in that group? Activity: How Entrepreneurial Are You? Are you Santa or an elf? Why? If I gave you $100, how would you spend it? Are you comfortable flying blind? Share your results with 2 or 3 around you Compare your results Afterward, as a class, create a word web on the front board highlighting characteristics you feel an entrepreneur may possess

Word Web Create word web on board using adjectives to describe entrepreneur Class Discussion to follow Using these words, how can we define “entrepreneur” & how is this different from “entrepreneurship”?

Entrepreneurs Can Change the World So, what is an entrepreneur? Entrepreneurs are usually: take charge people self-directed people want to work for themselves often risk takers An entrepreneur is a person who recognizes a business opportunity and organizes, manages, and assumes the risk of a business enterprise, with the intent of increasing the market value of a business. What are your entrepreneurial ideas?

Numbered Heads Together What are the advantages and disadvantages of entrepreneurship? Brainstorm with group and write down as many as you can think of in two minutes Then categorize and prioritize your answers Be prepared to discuss Ten minutes alloted

Advantages of an Entrepreneurship A business started by someone who notices a need for a product or service is an entrepreneurship. 5 Advantages of an Entrepreneurship 1. Satisfaction in taking a risk 2. Becoming successful 3. Showing expertise and skills 4. Working from home 5. Gaining profit

Disadvantages of an Entrepreneurship 3 Disadvantages of an Entrepreneurship 1. Total responsibility for the business 2. Long hours 3. Financial risk Turn & Talk: greatest advantage and worst disadvantage? The main reason that an entrepreneurship fails is the need for money

Type of business 1: Food 2: Clothing 3: Entertainment 4: Other

Number of hours worked each week: 1: : : : 50+

Amount of start up money needed: 1: $10,000 2: $50,000 3: $300,000 4: $500,000

Number of years until you earn a profit: 1: 3 2: 5 3: 7 4: 10

Small Business SBA is the Small Business Administration THE SBA Defines a small business as an independently owned business that usually has the owner as its manager. A small business Serves a limited geographic area Employs fewer than 500 people Is not dominant in its industry A virtual business or a dot-com company is a business that operates on the internet Accounts for over 50% of total workforce in U.S. in small businesses Can you name some small businesses?

Advantages/Disadvantages of a small business 3 advantages of a small business 1. Being the boss 2. Opportunity to offer services that large companies cannot 3. Ease of formation 3 disadvantages of a small business 1. Effect of change (economics) 2. Managerial skills needed o Juggling finances, employees, production and customer relations 3. Inadequate financial planning o Four of five small businesses fail in the first five years o Those that require advanced training prior to opening are usually most successful (dentist, physician) Greatest advantage/disadvantage?

Jigsaw: Business Plans Find information in groups about your assigned section of a business plan Educate fellow classmates on your respective section after research Apply those parts of a business plan to your own RA business This “rough draft” should have bullet points of ideas to include in each respective section

Advantages/Disadvantages of a small business Exit ticket: What is your biggest advantage / hurdle to becoming an entrepreneur? Why?